Restaurant Labor Trends in North America: 2026 & Beyond
The restaurant industry has always been people-driven, but in recent years, labor has become one of its most constant challenges. By 2025, many restaurant businesses across North America have moved beyond the post-pandemic hiring scramble, only to face a new set of obstacles: ongoing labor shortages, rising wages, changing worker expectations, and tighter margins. At the same time, meeting guest expectations has not become any easier. Restaurants are still expected to deliver speed, consistency, and quality, often with a limited workforce. As a result, hiring more staff isn’t always the solution — working smarter is. As streamlined operating models, alternative restaurant formats, and AI-driven technologies rise in popularity, the industry is reassessing how labor fits into long-term strategic planning.
So what does all of this mean for the restaurant workforce right now? In this article, we take a closer look at the labor market across North America, highlight the trends shaping it, and explore where the workforce is headed next.
North American Restaurant Labor Analysis
United States
In the United States, the restaurant labor market has shown resilience in 2025. Bars and restaurants added nearly 150,000 jobs over the year, with overall employment ending about 1.9% above pre-pandemic levels by the end of the year. Despite this overall growth, hiring still remains a challenge. Many restaurant operators continue to struggle with staffing shortages, especially during peak periods, making it difficult to meet consumer demand. In December 2025, the National Restaurant Association reported that 70% of operators were struggling to fill open positions, while 45% lacked sufficient staff to handle existing customer demand.
On top of staffing shortages, rising wages, high turnover, and burnout continue to be a large strain on labor costs. Even with these challenges, restaurants continue to play a major role in U.S. employment, and the industry is still continuing to grow its workforce.
Canada
In Canada, the restaurant and foodservice sector has also seen positive employment trends in recent years. By February 2025, the industry reached its highest employment level since the start of the pandemic. Additionally, through the first nine months of 2025, foodservice establishments added roughly 23,600 jobs, outperforming broader private-sector employment growth. This improvement was supported in part by the GST/HST tax break and a strong demand for dining out.
The broader Canadian labor market shows mixed signals, with the unemployment rate dipping to a 16-month low of 6.5% in early 2026. According to Andrew Hencic, senior economist at TD Economics, “the unemployment rate suggests the labor market is better than expected, but not necessarily tight.” While consumer demand drives hiring, the limited labor pool and rising wages put pressure on restaurant operators to staff efficiently. After some very challenging years, there is cautious optimism in Canada’s foodservice sector, though inflation continues to be a major factor in staffing and operational decisions.
Predictions for 2026–2030: Where the Restaurant Labor Market Is Headed
As the restaurant industry moves beyond 2025, the labor market is expected to change and adapt in several ways. With ongoing staffing shortages, rising labor costs, and changing consumer expectations, technology will have a bigger influence on how restaurants operate.
AI and Automation: Transforming Roles, Not Just Replacing Them
Artificial intelligence and automation are becoming increasingly common across restaurant operations – not just in the kitchen, but in customer-facing roles as well. Industry research suggests that AI could impact 10–80% of restaurant jobs, especially positions that involve repetitive tasks such as order taking and drive-thru service.
Rather than eliminating jobs entirely, much of this technology will transform roles. AI can handle routine tasks, freeing human staff to focus on higher-value work such as training, problem-solving, and quality control. Restaurant operators are planning on investing heavily: the restaurant technology market is forecasted to reach $314.85 billion by 2033, growing at a 16.39% CAGR, signaling how quickly tools like AI-powered systems, data analytics, and automation are becoming core components of restaurant IT budgets. By the end of 2026, voice AI is expected to be mission-critical, especially for independent restaurants managing phone orders and easing labor gaps.
Ghost Kitchens and the Evolution of Restaurant Formats
Ghost kitchens, which are delivery-only operations optimized with automation and data, are forecasted to see significant growth in the coming years. These kitchens allow operators to reduce overhead costs and streamline operations by simply eliminating traditional front-of-house spaces. Technology plays a crucial role in this model: AI-driven order management, predictive inventory systems, and integrated delivery platforms help restaurants operate efficiently with smaller teams while maintaining consistent quality.
While ghost kitchens have obvious advantages, they also reshape the workforce. Fewer front-of-house roles are needed, while increasing demand for staff with skills in kitchen operations, logistics, and technology management. For many restaurant operators, this means retraining existing employees or hiring for a different skill set than traditional restaurants require. As consumer demand for convenience continues to grow, ghost kitchens are likely to become an essential part of the restaurant labor market.
Leaner Operations and Strategic Staffing
With ongoing labor constraints and rising costs, restaurants are increasingly adopting lean staffing models and more flexible scheduling systems. Many restaurant operators are using digital labor management tools to streamline recruitment, scheduling, and workforce optimization. According to recent research, 37% of restaurants plan to adopt automated labor management systems, and 28% are exploring AI-driven solutions to improve staffing efficiency and reduce administrative burden. Scheduling software is also becoming standard: 75% of restaurants now rely on digital scheduling platforms to manage shifts, track labor costs, and create employee schedules.
In addition to technology, operators are adopting cross-training and hybrid staffing strategies through using part-time, split shifts, and multi-role employees. This approach allows restaurants to optimize labor without overstaffing, creating a more resilient workforce capable of meeting customer expectations despite ongoing shortages and rising labor costs.
Economic Impact on the Restaurant Industry
Labor costs, wage trends, and broader economic strain continue to influence staffing strategies and operational decision-making in restaurants. Rising wages in many regions are putting additional pressure on restaurant operators working with thin margins, while inflation and price sensitivity among diners further reduce profitability.
Together, these economic factors are shaping how restaurants hire, schedule, and retain employees. Restaurant operators are increasingly balancing labor costs with operational needs, using technology and flexible staffing strategies to maintain profitability while meeting customer expectations. These pressures are likely to remain important considerations well into the late 2020s.
Final Thoughts on Restaurant Labor Trends in North America
The North American restaurant labor market in 2025 shows an industry that’s both resilient and under pressure. In the U.S., an increase in jobs highlights growth, but persistent staffing shortages show that finding and keeping talent is still a major challenge. In Canada, labor shortages and changing workforce dynamics paint a similar picture.
Looking ahead, AI and automation offer opportunities to work smarter, but they need to be paired with thoughtful workforce planning and upskilling. Restaurants that can strike the right balance between technology and human labor, and adapt to workforce trends will be set up for success.
To see how your restaurant can streamline payroll, scheduling, and workforce management all in one platform, book a demo with Push today.
