Automation Steps In to Fill Hospitality Service Staff Shortages

The pandemic had a massive ripple effect on jobs throughout the hospitality industry. Travel restrictions and social distancing brought business and recreational travel to a standstill. The industry has been slow to recover, partly due to Zoom and other teleconferencing services supplanting many forms of business travel. Hotels laid off and furloughed employees in record numbers to cut costs during the pandemic. Now 97% of hotels report labor shortages as travel picks up, and restaurants are in the same boat.

Automation could alleviate labor shortages by augmenting or replacing key hospitality roles. Human resources and workforce management are some of the most common areas ripe for automation. Reducing the need for human employees in these positions can assist in hiring in other departments. Restaurants, in particular, can reap significant benefits from automation technology. Chains such as Chipotle, Buffalo Wild Wings and Panera Bread are experimenting with automation for tasks including ordering, drive-thru management and food preparation.

The “Hospitality Tracker®” examines how automation technologies can help the hospitality industry mitigate staffing shortages.

Around the Hospitality Space

Running a hotel is no easy business, especially as online booking, mobile check-in and contactless payments add new complications. A recent survey found that 70% of hotel operators plan to add, upgrade or change their property management systems in the coming year. This share is 15% more than those planning to replace their revenue management systems.

Increased labor costs and higher adoption of digital technology since the pandemic’s onset are spurring record levels of automation in the restaurant industry. A recent survey found that quick-service restaurant (QSR) operators plan to automate 51% of store tasks in the next two years. Full-service restaurants plan to automate 27%.

For more on these and other stories, visit the Tracker’s News and Trends section.

An Insider on the Staffing Crisis Gripping the Restaurant Industry

Restaurants have an economic tailwind at their backs, but labor shortages from the pandemic continue to hamper their success. Automation technology has been a vital tool for mitigating these staffing challenges.

To get the Insider POV, we spoke with Andrew Robbins, CEO of Paytronix, about how automation can help.

Leveraging Automation Technology to Mitigate Hospitality Labor Shortages

In recent years, the hospitality industry has felt the squeeze from staffing shortages, especially hotels and restaurants. As a result, businesses are exploring new technologies to make up for the lack of staff. These businesses are using automated services to augment or replace human employees.

This month, PYMNTS explores how automation technology can help to solve labor shortages in the hotel and restaurant industries.

About the Tracker

The “Hospitality Tracker®,” a collaboration with LS Retail, examines how automation technologies can help the hospitality industry mitigate staffing shortages.