Staffing
Is labor shortage the new normal? How QSR leaders can adjust to demographic realities
The restaurant industry is facing a severe and growing labor shortage due to retiring workers and pandemic-related staff reductions, necessitating a comprehensive approach that includes retaining older workers, offering flexible scheduling, tapping into nontraditional labor pools and utilizing international worker programs.
July 4, 2025 by John Dorer — CEO, eb3.work
Even the best manager cannot run a restaurant with no staff. While that may seem hyperbolic, an industry long used to labor shortages and high turnover must pull out all of the stops to deal with the current, and growing, labor shortage. Millions of workers retire every year, 4.1 million annually through 2027, and there are not enough workers to replace them. These problems have been compounded by the pandemic, with the restaurant industry still several percentage points below its pre-pandemic staffing levels.
To overcome this, leaders must take an all-of-the-above approach when it comes to attracting new workers, understanding that even were every job seeker in the U.S. to start work tomorrow there would still be 1.2 million vacancies. Since there are not enough workers domestically, they must take that same all-of-the-above approach to bringing in workers from abroad.
Withstanding the 'Silver Tsunami'
With so many workers retiring experts have no shortage of nicknames for what business leaders are facing across a wide range of industries. Few will be hit as hard as quick service restaurants, who have already struggled to recover from the pandemic, with the labor force 1.7 million workers below its February 2020 level. Even before that, leaders have long contended with high turnover rates. The food service sector has an annual quit rate of 73.8%, meaning managers must replace almost three out of four workers every single year. It should come as no surprise that nearly half of managers say the recruiting, retention and training process represents their biggest headache.
Investments in technology, such as automated ordering kiosks, have partially shielded QSRs from the labor shortage. However this can only go so far, as they still require staff to operate and stay open. Additionally, while larger chains have the capital to invest in these on a grand scale, smaller and medium sized operators may not be able to afford the upfront costs. That inability is only exacerbated by the labor shortage, as the increased turnover and other higher costs caused by the lack of workers constantly eats into the bottom line.
Managers must do what they can to make the best of the retirement wave. Among the millions retiring every year many do not wish to leave the work force completely. This can have a twofold benefit, increasing the number of workers while also improving recruitment and retention. Holding onto retiring workers in a part time capacity enables managers to integrate them into training programs, perhaps even using it as the foundation of an apprenticeship program. This passes valuable on the job knowledge and skills to younger workers. This can be tied to retention bonuses to incentivize new workers to stay on longer and reduce turnover rates. Similarly, these programs can be used to encourage its participants to stay on longer with increased likelihood of promotions.
In addition to the benefits of such mentoring programs, the scheduling benefits can help attract workers as well. During the pandemic, many workers appreciated the increased availability of remote and hybrid work options. While this can rarely be directly translated to QSR jobs, savvy managers should understand how much young workers value scheduling flexibility. Having a pool of committed part-time workers, workers with experience and reliability on the job, gives managers greater ability to provide that scheduling flexibility.
Hiring managers should also look to other nontraditional pools of workers. Returning veterans and formerly incarcerated individuals consistently rank among underemployed groups, and programs exist at the federal and many state levels to help right that wrong. The mentorship programs could help ease the process, and tuition assistance programs that would be appealing to these individuals would also help managers bring in younger students, growing outreach to another consistently underemployed bloc.
If you build it, they will come
All of the above will not be enough to overcome the demographic shift. There simply are not enough workers. Fortunately, tools exist for employers to bring in workers from abroad. Programs such as the EB-3 visa allow employers to sponsor workers, if they can prove they could not find the workers domestically. With a widening labor gap, that inability will become more common. The EB-3 offers reliability and can help reduce turnover because employees stay for at least twelve months. Furthermore, these employees have often proven themselves to be incredibly reliable and loyal.
The demographic shifts and the resultant labor shortage will persist at least through the end of the decade and perhaps longer. Building up a program to increase and improve outreach through work visa programs alongside the recruitment, training, and retention programs outlined above can even further improve the commitment of those immigrant workers. Building up these programs will reduce turnover and hiring costs while attracting and retaining workers domestically. By tying it to an improved outreach program utilizing all available tools for bringing in workers from abroad, QSR leaders can position themselves to withstand it, and even emerge stronger.
About John Dorer
Headquartered in New York City, eb3.work has positioned itself as the premier solutions provider in tackling the United States’ persistent and growing shortage of unskilled and entry-level labor. Founded on the principle of streamlining the complexities of the U.S. immigration system, the company serves as a crucial bridge between employers in need of labor and foreign nationals seeking lawful employment in the United States.
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