Operations
The QSR tightrope: balancing margins, compliance and employee happiness
Modern restaurants can increase profit margins by prioritizing smart, strategic workforce management, which includes using technology to improve hiring, scheduling and compliance to boost employee satisfaction and retention.
August 15, 2025 by Justin Hall — HR Director, Salz Group
Remember when value menus actually meant value? These days, keeping margins intact is a high-wire act for restaurant operators. Beef prices alone jumped 12% this year. For chains like McDonald's, that translates to nearly $4 million a day just on burgers.
But you don't fix rising food costs by squeezing frontline teams harder. You fix it by making the restaurant workforce more resilient. That starts with smarter, more strategic workforce management.
As someone managing dozens of locations across brands, I've learned that the difference between holding the line and bleeding profit often comes down to one thing: how you manage your people.
Workforce management is a profit lever
Hiring, scheduling, and compliance all add up. But what costs more?A single turnover event that drains six to nine months of that person's salary.
In 2025,77% of restaurant operators still say hiring and retaining staff is a top challenge. Even as openings have dipped slightly from the peak, managers remain the hardest positions to fill.
The financial ROI of employee happiness is more than a feel-good concept, it's backed by numbers. When your team is engaged and supported, they feel happier and are less likely to leave. Longer tenure means less churn, tighter operations and better service. Better service is what keeps guests coming back, especially when menu prices are rising.
From cost cutting to labor optimization
Labor is the biggest expense for most operators. For years, the playbook was simple: cut hours when sales dipped and stretch shifts when things got busy. That approach doesn't work anymore. Guests expect fast, friendly service no matter what, and overworked teams burn out fast. We've learned to treat labor as a precision tool, focusing on being impactful with our staffing decisions rather than simply cutting hours.
The reality is straightforward: investment in labor is investment in sales. I've never seen an operator cut labor and watch sales go through the roof - it just doesn't work that way.
That kind of precision starts with forecasting. AI-powered labor forecasting tools now blend POS data with external factors like weather, local events and historical traffic patterns. It's like having a crystal ball for staffing, letting you predict demand down to the hour. This data-driven foundation fuels dynamic scheduling—automated shift-building that aligns forecasted demand with employee skills, preferences and compliance rules.
When you get it right, you're building smarter shifts that keep service levels high, reduce no-shows and help your team feel supported. The result? Happier employees, better guest experiences and a healthier bottom line.
Managing labor at scale
Running multiple locations across brands like Dunkin', Taco Bell and Wendy's means juggling different demand patterns, team structures and training protocols. Without centralized labor visibility, it's chaos.
But the fundamental tasks remain consistent - teams need to hire people, complete paperwork, build schedules, and manage clock-ins.
It's the same operational rhythm repeated across concepts, which makes centralized systems so effective. Our rule is simple: if a new tool can't integrate with our main platform, we don't adopt it. There's nothing worse than forcing managers to juggle multiple logins and application overload when they should be running restaurants.
What's worked for us is using one workforce management platform across all our locations. We've been able to streamline onboarding and build consistent labor practices across the board, all while still respecting brand-specific needs. And results are tangible - we've reduced compliance penalties from 1.3% to 0.28% of payroll weekly.
It's about staying proactive with real-time data on applicant flow, automated compliance alerts and scheduling tools that actually prevent burnout.
Hospitality compliance
Fair Workweek laws? Predictive scheduling? Written consent on changes? Managers aren't stopping mid-rush to double-check forms, nor should we expect them to.
But non-compliance is more than a paperwork problem. New York City's "Wall of Shame" makes that clear. It's a public-facing webpage maintained by the Department of Consumer and Worker Protection that lists employers (many in foodservice) fined for violations of the city's Fair Workweek laws. The fines often reach five figures and are visible to anyone, including prospective employees and customers. That kind of exposure hits restaurants hard as it tanks morale and damages brand trust.
The better move is to automate it. Build in systems that catch compliance risks early, flag potential violations in real time and trigger premium pay when required. Fair Workweek rules often apply to last-minute schedule changes or back-to-back shifts, which can be easy to miss in a fast-paced environment. Many operators find that "when in doubt, pay it out" helps avoid costly delays, complex admin work, and potential fines.
Staying compliant keeps operations moving, supports team trust and ensures you're always audit-ready in a tighter regulatory landscape.
Retention is the new margin driver
Nine out of ten managers and eight out of ten owners started in entry-level roles. That means the next generation of restaurant leaders is already working your line, manning your drive-thru, and taking your orders today. Long-term profitability depends on long-term team members. But that kind of loyalty doesn't just happen, it has to be earned.
So how do you build and nurture that pipeline in an industry known for high turnover? It starts with creating an employee experience that feels as thoughtful and modern as the guest experience. That's where tech-enabled employee retention strategies come in. Tools like digital onboarding make it easier to get new hires up to speed quickly, while mobile access to schedules puts control back in their hands. Feedback loops that don't disappear into the void show employees their voice matters, even early in their career.
This is especially important when one in three QSR workers are teens. They've grown up with apps, instant notifications, and transparency as the norm. If your systems feel outdated, they'll assume the job will be too.
Franchise hiring and scheduling: Standardize what matters
In a franchise network, consistency is critical. We've learned the value of repeatable playbooks that include clear hiring practices, onboarding timelines and a centralized approach to scheduling and compliance. These systems create stability and make it easier to grow.
But every location runs a little differently. Demand patterns shift, applicant pools vary and each GM brings a unique leadership style. Integrated HR tech helps us manage those differences without losing visibility. It gives us the tools to track labor trends, catch compliance risks early and support local teams without adding admin overhead.
Our goal is to make hiring easier, scheduling smarter and day-to-day operations more manageable for every location in the system. With the right tools in place, we can focus on running great restaurants while staying ready for whatever comes next.
There's a need for the culture to change. Too many operators think cutting labor will solve their problems. But if you have two people working breakfast and one is jumping between the drive-thru and front counter, neither customer gets a great experience. Real growth happens when you invest in giving every customer the experience that makes them want to return tomorrow.
The bottom line: Efficiency scales, burnout doesn't
Time is more valuable than money right now. Every minute saved on admin tasks is a minute back to coach, serve or solve problems in real time.
With modern restaurant workforce management tools in place, our scheduling time dropped by over 30%, no-show rates declined and overall employee satisfaction scores improved. These metrics show up in our customer experience, retention rates and financial performance. And asthe restaurant industry adds another 1.5 million jobs over the next decade, scalable labor models will make or break multi-unit operators.
The QSR industry has always moved fast. But what's changed is that your ability to adapt your labor strategy may now matter more than your ability to adapt your menu. Whether you're working with three locations or 3,000, now's the time to shift from workforce firefighting to workforce foresight. The right technology will help you fill positions, protect margins, stay compliant and keep your team (and your guests) happy.
Because in this industry, every shift counts.
About Justin Hall
Justin Hall is a tenacious operator focusing on efficiency, streamlining processes and reducing complicated matters. He has a long history working with top QSRs to expand their operations, HR Functions, and understands how to work in a growth structure. Justin has much familiarity with building processes, SOPs, and strategy while learning to color both in (and outside of) the traditional lines, and enjoying the ride along the way.
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