The restaurant industry is grappling with an unprecedented labor shortage crisis, causing significant operational challenges, longer wait times, and decreased customer satisfaction.
Rising wages, evolving workforce preferences, and the lingering effects of the COVID-19 pandemic have exacerbated staffing issues in the restaurant industry.
According to the National Restaurant Association, as of the end of 2024, 45% of operators report staffing shortages, with employment still 3.6% below pre-pandemic levels and 450,000 jobs unfilled.
Wages have risen by 29% since 2020, further increasing costs. Due to these shortages, many restaurants have reduced operating hours by 7.5 hours per week, as noted by Kezner Consulting. These challenges highlight the pandemic’s lasting impact on workforce dynamics.
As restaurants struggle to maintain service quality, many turn to technology for solutions. Self-service kiosks have emerged as a powerful tool in this context, helping to alleviate staffing pressures by automating tasks like order-taking and payment processing.
When reducing reliance on human labor, kiosks allow restaurants to streamline operations, increase efficiency, and deliver customers a faster, more personalized experience.
This article will dive into how self-service kiosks address restaurant labor shortages, exploring their benefits, financial impact, and role in transforming the future of the dining experience.
Understanding the Labor Shortage in the Restaurant Industry
The restaurant industry has been severely impacted by an ongoing labor shortage crisis with roots that go deeper than many realize. This shortage affects everything from staffing levels and service quality to overall profitability.
This issue arises from economic pressures and evolving workforce expectations, amongst other factors and contributors.
Let’s examine the key reasons behind this shortage and why restaurants turn to kiosks for restaurant staffing challenges.
1. Economic Pressures on the Industry
One of the main drivers of the labor shortage is the rising labor cost. Over the past few years, wages in the food service industry have increased steadily.
According to U.S. Bureau of Labor Statistics data, restaurant workers’ wages have risen by 20% in the past five years. These wage hikes present a serious challenge for small and independent restaurants.
Many restaurant owners are already operating on tight profit margins, and the need to pay higher wages to attract workers makes it even harder to remain profitable.
These economic pressures force restaurants to make tough choices. Some have had to raise menu prices to cover labor costs, while others have reduced staff hours or limited their service offerings.
Despite these efforts, many restaurants still need help to fill open positions, which leads them to explore solutions like self-service kiosks that can help offset the labor gap.
2. Changing Workforce Preferences
The restaurant industry traditionally relies on younger workers, such as college students or recent graduates, who view these jobs as temporary or part-time. However, the workforce’s preferences have shifted in recent years, making it harder for restaurants to attract new employees.
Millennials and Gen Z workers, in particular, seek jobs offering flexibility, remote work options, and higher wages. Many young workers are turning away from the food service industry, known for long hours, low pay, and limited growth opportunities.
This shift in workforce preferences has led to a significant decline in the number of young people entering the restaurant industry. With fewer applicants for entry-level positions, restaurant owners are facing a staffing crisis.
The traditional appeal of restaurant jobs as a starting point for young workers is fading, making it more critical for businesses to find alternative solutions, such as addressing labor shortages with kiosks.
3. The Post-Pandemic Impact
The COVID-19 pandemic had a lasting effect on the restaurant industry, particularly regarding staffing. During the height of the pandemic, many restaurants were forced to shut down temporarily or operate at reduced capacity, leading to widespread layoffs.
As the industry started to recover, many former restaurant employees chose not to return. Some found work in industries that offered stability and safety, while others pursued new career paths.
The impact of the pandemic on the workforce has been profound. According to a report by the National Restaurant Association, 79% of restaurant operators faced significant staffing challenges in 2023.
Many restaurants could not return to their pre-pandemic staffing levels, leading to reduced hours of operation, limited menus, and slower service.
This ongoing issue has prompted a surge in interest in kiosk solutions for restaurant labor issues as businesses seek ways to maintain efficiency with fewer staff members.
4. High Turnover and Employee Burnout
The restaurant industry has always dealt with high turnover rates, but the problem has worsened recently due to increased burnout among workers. Restaurant jobs are often physically demanding and involve long hours on one’s feet, dealing with high-stress situations.
Workers must handle peak rush times, meet customer demands, and quickly adapt to changes while receiving relatively low pay. The stress of these conditions has led many employees to leave the industry for better opportunities.
Burnout is a severe issue in the restaurant sector, contributing heavily to the labor shortage. When employees quit, restaurants scramble to fill these roles, often with little success. High turnover also means new hires need training, which burdens already stretched staff.
This cycle of hiring, training, and losing employees is costly and disruptive for businesses. To combat these challenges, many restaurants are turning to kiosks for restaurant staffing challenges to simplify operations and reduce their reliance on human staff.
How Self-Service Kiosks Help Combat Labor Shortages?
The restaurant industry struggles with staffing shortages, but technology offers a new way forward.
Self-service kiosks provide a practical solution by taking on tasks that traditionally required multiple employees, allowing restaurants to operate smoothly even with fewer staff members. Let’s explore how self-service kiosks address restaurant labor shortages and the fundamental ways they boost efficiency.
1. Optimizing Labor with All-in-One Kiosks
All-in-one kiosks are designed to handle a range of functions, from taking orders to processing payments and managing loyalty programs, all through a single interface.
This technology reduces the need for multiple employees and modernizes operations, allowing restaurants to maintain high service levels even with limited staff.
For instance, Wendy’s implemented all-in-one kiosks across its locations. The results were impressive: labor costs decreased, and the speed of service improved significantly.
When consolidating multiple tasks into one device, the kiosks provided an efficient solution to addressing labor shortages with kiosks. The revamped process demonstrated the effectiveness of kiosk solutions for restaurant labor issues, making it easier for staff to focus on other essential tasks.
2. Enhancing Customer Experience
One of the most significant benefits of self-service kiosks in dining is their ability to improve the customer experience.
Kiosks provide a faster and more interactive way for customers to place orders. They allow diners to browse the menu at their own pace, customize their meals, and avoid the pressure of ordering quickly at the counter. This personalized service improves customer experience satisfaction and helps reduce wait times.
This speeds up the ordering process and adds convenience that encourages repeat business. The success of these kiosks highlights how kiosks for restaurant staffing challenges can simultaneously boost customer satisfaction while easing the burden on employees.
3. Reducing Human Error in Orders
Order accuracy is crucial for maintaining high levels of customer satisfaction, but it can take time to achieve during busy times when staff handle multiple tasks.
Human errors, such as miscommunication or inputting the wrong order, are common in fast-paced restaurant environments. However, self-service kiosks help to minimize these mistakes by allowing customers to input their orders directly.
Kiosks’ ability to reduce errors is a crucial advantage in addressing labor shortages with kiosks, as it leads to fewer complaints, less food waste, and better overall service.
4. Increasing Throughput During Peak Hours
Peak times, such as lunch and dinner rushes, can be challenging for restaurants, especially when short-staffed.
Long lines and slow service can result in lost sales and frustrated customers. However, self-service kiosks can help solve this issue by simultaneously managing a high volume of orders. Unlike human staff, kiosks can handle multiple transactions simultaneously, allowing more customers to be served quickly.
5. Supporting Staff in Other Areas of the Restaurant
One of the most valuable aspects of kiosk solutions for restaurant labor issues is their ability to free up existing staff to focus on other essential tasks.
Kiosks automate the order-taking and payment process, allowing employees to redirect their efforts toward food preparation, customer service, and maintaining a clean and welcoming dining environment.
This shift in responsibilities can improve service quality and operational efficiency.
6. Upselling and Boosting Revenue
Self-service kiosks are designed with upselling features that suggest additional items to customers when they order.
These prompts encourage diners to add extras like drinks, desserts, or sides, increasing the average transaction value. This capability boosts revenue and provides customers with a more personalized experience.
7. Offering Consistent Service Quality
Consistency is a critical factor in the restaurant industry, as customers expect the same level of service every time they visit. However, maintaining consistent service can be difficult when staff are overwhelmed or when there are frequent personnel changes.
Self-service kiosks provide a solution by delivering a reliable and uniform experience whenever a customer orders.
Unlike human employees, kiosks do not have off days, do not need breaks, and are not affected by mood or fatigue. This ensures that customers receive the same high-quality service regardless of the time of day or the restaurant’s staffing levels.
Kiosks’ dependability is a significant reason many businesses invest in kiosk solutions for restaurant labor issues.
8. Providing a Contactless and Safe Experience
In today’s health-conscious environment, many customers prefer a contactless experience. Self-service kiosks cater to this demand by offering digital ordering and payment options that minimize physical contact.
This augments safety and aligns with modern consumer preferences for hygienic, touch-free interactions.
Contactless features in kiosks are another example of the benefits of self-service kiosks in dining, as they help meet customer expectations while addressing staffing challenges.
Financial Benefits of Implementing Kiosks
The financial benefits of adopting self-service kiosks are substantial. They help restaurants manage kiosks for restaurant staffing challenges while improving profitability.
1. Long-Term Cost Savings
While implementing kiosks requires an upfront investment, the long-term financial benefits far outweigh the initial costs. Maintaining kiosks’ ongoing expenses are considerably lower than hiring, training, and retaining staff.
In a traditional setting, restaurants must regularly invest in employee recruitment, onboarding, and skill development, which adds to their labor costs. With self-service kiosks, these recurring expenditures are significantly reduced.
Kiosks also help mitigate the impact of staff turnover, a common issue in the restaurant industry. High turnover rates lead to increased costs associated with training new employees. When relying on kiosks for routine tasks like order taking and payment processing, restaurants can operate efficiently with a leaner workforce.
2. Increased Order Volume Through Upselling
One of the most powerful features of self-service kiosks is their ability to leverage data-driven algorithms for effective upselling. Kiosks use advanced software to analyze customer preferences and make tailored recommendations for complementary items, such as side dishes, drinks, or desserts.
This upselling strategy is often more effective than traditional methods, as kiosks can consistently offer suggestions without the hesitation or variability of human employees.
For example, when a customer orders a burger, the kiosk might suggest adding fries or a drink, increasing the overall transaction size. These data-driven prompts encourage customers to spend more, boosting the restaurant’s revenue.
3. 24/7 Availability
Self-service kiosks provide a significant advantage by offering around-the-clock service, enabling restaurants to maximize revenue without incurring additional labor costs.
In traditional settings, maintaining consistent service during late nights or early mornings requires scheduling more staff, which can be costly and inefficient, especially during off-peak hours.
However, kiosks can operate continuously, ensuring that customers receive consistent and prompt service at any time of day.
Moreover, the consistent service provided by kiosks helps increase customer satisfaction, as customers can place orders quickly and efficiently without waiting for a staff member to be available.
Health and Safety Benefits of Self-Service Kiosks
Self-service kiosks also offer essential health and safety benefits, particularly in the context of post-pandemic dining preferences.
1. Promoting a Safer Dining Environment
One of the primary health benefits of self-service kiosks is the reduction of face-to-face interactions between staff and customers. When minimizing direct contact, kiosks help lower the risk of germ transmission, creating a safer dining experience.
This is especially important during flu seasons or in high-traffic areas where reducing physical contact can significantly boost safety.
2. Convenience of Contactless Transactions
Many self-service kiosks offer contactless payment options, allowing customers to use digital wallets, NFC-enabled cards, or mobile apps.
These contactless transactions minimize the need for physical contact with shared surfaces, addressing health concerns and providing a more hygienic experience. With contactless technology, restaurants can offer a smooth and safer payment process.
3. Enhanced Control Over Orders
Kiosks give customers greater control over their orders, allowing them to customize items according to their preferences.
This self-ordering capability reduces the likelihood of mistakes, especially regarding dietary restrictions or allergies. When ensuring accurate communication of special requests, kiosks provide a safer and more satisfying dining experience.
4. Reduced Wait Times and Improved Flow
Self-service kiosks allow multiple customers to place orders simultaneously, helping align the ordering process, reducing wait times, and improving restaurant flow.
Shorter wait times improve the customer experience and reduce crowding in waiting areas, promoting better social distancing and a safer environment for everyone.
5. Accessibility Features
Modern kiosks are designed with inclusivity in mind, featuring accessibility options that cater to all customers, including those with disabilities. Features like larger text sizes, audio output, voice assistance, and tactile interfaces ensure everyone can use the kiosks comfortably.
This focus on accessibility promotes equal access and boosts the overall dining experience for all guests, making restaurants safer and more welcoming.
Do Self-Service Kiosks Eliminate Jobs?
There is a widespread concern that implementing self-service kiosks might replace human jobs, particularly in industries like retail and hospitality.
However, the reality is often different. Instead of eliminating jobs, kiosks usually complement the roles of existing staff by automating repetitive tasks such as order taking and payment processing.
This automation allows employees to redirect their focus toward more value-driven activities, such as enhancing customer service, managing complex orders, and providing personalized assistance.
With fewer mundane tasks, staff can engage more with customers, contributing to a better and more efficient overall experience.
New Job Opportunities Created
Adopting kiosk technology has also led to new job opportunities in areas like software support, maintenance, and data analysis.
Case Studies of Successful Kiosk Implementation
1.McDonald’s Success with Self-Service Kiosks
McDonald’s implementation of self-service kiosks revolutionized the fast-food industry, setting a benchmark for technology-driven customer service. In 2015, McDonald’s began integrating self-order kiosks across its U.S. locations to smooth out ordering and reduce wait times.
The kiosks featured user-friendly interfaces, customization options, and multilingual support, enhancing accessibility and customer satisfaction. The results were significant: McDonald’s reported a 6% increase in sales within the first year and a 50% reduction in operational costs.
The kiosks also boosted order accuracy and enabled effective upselling, increasing the average order value by 30%. McDonald’s success highlights the powerful impact of self-service solutions on operational efficiency and customer experience.
2. Panera Bread’s Transition to Self-Service Kiosks
Panera Bread’s adoption of self-service kiosks marked a pivotal shift in the fast-casual dining experience. The company aimed to align operations and increase customer satisfaction.
As part of the Panera 2.0 initiative, the chain introduced ordering kiosks to reduce reliance on cashiers and optimize labor costs. When replacing traditional cashier counters with digital kiosks, Panera enabled more employees to focus on kitchen operations, improving order efficiency.
The kiosks allow customers to browse the menu, customize their orders, and easily access nutritional information. Panera reported shorter wait times, increased order accuracy, and a rise in personalized orders.
Additionally, integrating MyPanera rewards lets users save their preferences for future visits. Despite the reduced human interaction, the transition maintained the quality of the dining experience, showcasing the benefits of self-service technology in fast-casual restaurants.
Conclusion
Self-service kiosks are revolutionizing the restaurant industry by effectively addressing labor shortages with kiosks. These devices rationalize operations, allowing restaurants to serve more customers efficiently even with reduced staff.
When automating tasks like order-taking and payment processing, kiosks help reduce labor costs and minimize the risk of human error, ultimately boosting profitability. Beyond financial benefits, the benefits of self-service kiosks in dining include improved customer experiences, faster service, and greater order accuracy.
With modern features like upselling capabilities and contactless payment options, kiosks also cater to evolving consumer preferences, providing a uniform and safe dining experience.
As the restaurant industry continues to adapt to staffing challenges and changing customer expectations, investing in kiosk solutions for restaurant labor issues are no longer just an option but a strategic necessity.
BOOK A FREE DEMO
