Revolutionizing Payroll: Insights from 7shifts' New Report
Streamlining Restaurant Payroll: The Insights You Need
The restaurant industry is facing a transition as it grapples with how to efficiently handle payroll. A recent report from 7shifts reveals significant statistics that showcase the struggles many establishments face. Notably, 67% of restaurants are spending over 100 hours annually on payroll. This inefficiency is not only taxing on resources, but it also stands in the way of growth.
Understanding the Payroll Benchmark Report
The new report from 7shifts dives deep into the complexities of restaurant payroll management. With insights gathered from over 500 restaurant professionals, it presents the "Restaurant Payroll Benchmark: A Framework for Growth". This framework categorizes payroll processes into four stages: Starting, Growing, Integrated, and Strategic. Aimed at providing practical solutions, this report aims to guide restaurants through the chaotic world of payroll to achieve seamless efficiency.
The Key Findings for Restaurant Operators
One of the pivotal insights from the report indicates that many operators are burdened by outdated payroll practices. Jordan Boesch, the CEO of 7shifts, emphasizes the urgent need for technological upgrades in the payroll process. Currently, 31% of restaurants are manually entering hours, which can cause significant delays and errors in payroll processing.
Critical Pain Points Identified
Some of the most concerning statistics revealed in the report include:
- Time Consumption: An alarming 67% of operators spend more than 100 hours on payroll each year.
- Manual Entry Issues: 31% still manually enter employee hours, increasing the risk of mistakes.
- Paper Tracking: Despite technological advancements, 32% of restaurants rely on paper records, which complicates payroll accuracy.
- Morale Impact: Errors in payroll processing hurt employee trust; 26% of operators report that payroll mistakes significantly impact morale.
- Compliance Risks: 46% of restaurants use basic tools for navigating complex labor laws, putting them at risk.
Positive Impacts of Advancing Payroll Practices
When operators elevate their payroll practices into the "Strategic" category, the outcomes can be transformative. Success stories highlighted in the report show significant time savings and reduced labor costs:
Real-Life Success Stories
For example, Chef Kevin Yu of 2d Restaurant reported saving five hours weekly on payroll processes, alongside saving more time on tip pooling. Joanna Heart of The Palm Coffee Bar dramatically reduced her payroll processing time from 90 minutes to just 10. Furthermore, Josh Bishop of Wildfire + Fork & Fire was able to lower labor costs by 20% thanks to a fully connected payroll system.
The Future of Restaurant Payroll
In the words of John Bishop, owner of Wildfire + Fork & Fire, "We were losing money the first year, and it was primarily due to labor costs. Now, our restaurant operates efficiently, and most of that success is credited to 7shifts." This transformation exemplifies what can be achieved when restaurant owners embrace innovative payroll solutions.
For those looking to assess their payroll processes against peer benchmarks and identify their current payroll stage, the report contains invaluable insights. Downloading the full report provides access to strategies that can enhance retention, reduce costs, and free up operational hours each week.
About 7shifts
7shifts was founded in 2014 in a sandwich shop's back office. Since then, it has grown into a crucial scheduling and payroll solution for restaurant teams across 55,000 establishments. Designed to help teams thrive, the platform offers simplicity and efficiency, making it a must-have for modern restaurants.
Frequently Asked Questions
What does the 7shifts report reveal about restaurant payroll?
The report discloses how inefficiencies in payroll processing impact restaurants and offers a framework to improve these systems.
How can restaurants reduce time spent on payroll?
By following the guidelines outlined in the report, restaurants can transition to more efficient payroll practices and embrace technology.
What are the main challenges identified in the report?
Key challenges include excessive manual entry, reliance on paper tracking, and risk of payroll mistakes, all of which can hurt operational efficiency.
What success stories are included in the report?
The report shares several success stories illustrating how restaurants achieved significant time savings and reduced labor costs through improved payroll practices.
How can I access the full report?
You can download the report directly from the 7shifts website to benchmark your payroll process against industry standards.
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