7shifts Releases Restaurant Payroll Benchmark: A Framework for Growth

New report reveals 67% of restaurants spend more than 100 hours per year on payroll, and how to fix it

TORONTO, Oct. 9, 2025 /PRNewswire/ -- 7shifts, the scheduling and payroll platform for restaurant operators, today announced The Restaurant Payroll Benchmark: A Framework for Growth. This focused extension of its popular Digital Prep List zeroes in on payroll inefficiencies holding restaurants back. Based on insights from more than 500 restaurant professionals, the report provides a four-stage payroll maturity framework: Starting, Growing, Integrated, and Strategic. It also maps a clear path from manual chaos to connected efficiency, offering practical guidance for operators looking to reduce time spent on payroll, cut labor costs, and improve the employee experience.

"Payroll should not be a four-hour grind for busy restaurateurs. It should be something that can be done fast, and without any stress," said Jordan Boesch, chief executive officer at 7shifts. "With 31% of restaurants still manually entering hours, too many teams are stuck in outdated workflows. This benchmark report, backed with data from 500 restaurant professionals, helps operators see where they stand and shows how technology can transform payroll into a strategic advantage."

Key findings from the benchmark report include:

• Payroll takes too much time: 67% of operators spend more than 100 hours per year processing payroll manually.
• Manual data entry is still widespread: 31% of restaurants manually enter each employee's hours into payroll systems.
• Paper persists: 32% of restaurants are still tracking time on paper, creating downstream issues with accuracy and efficiency.
• Errors hurt morale: 26% of operators cite payroll mistakes and corrections as a major pain point, damaging employee trust.
• Compliance remains risky: 46% rely on basic tools with manual oversight to keep up with complex labor laws.

As labor costs rise and compliance grows more complicated, operators are seeking solutions that save time without sacrificing accuracy. The Restaurant Payroll Benchmark offers the industry's first detailed snapshot of how restaurants manage payroll and what best-in-class performance looks like.

Operators who advance to the "Strategic" stage are seeing significant gains:

• Chef Kevin Yu of 2d Restaurant saves up to five hours per week on payroll, plus three to four hours per week on tip pooling.
• Joanna Heart of The Palm Coffee Bar cut payroll processing time from 90 minutes to 10 minutes.
• Josh Bishop of Wildfire + Fork & Fire decreased labor costs by 20% by utilizing a fully connected system.

"We were losing money the first year, and it was all labor—now, we are running a very efficient restaurant," said John Bishop, owner of Wildfire and Fork & Fire. "Labor is the biggest area that we've improved. I would give 80% of that credit to 7shifts."

To benchmark your payroll process against 500+ peers, identify your current payroll stage, and learn how connected payroll systems drive retention, reduce costs, and give back hours every week, download the report here: www.7shifts.com/restaurant-payroll-benchmark-guide.

About 7shifts

Born in the back office of a sandwich shop in 2014, 7shifts is a scheduling and payroll platform designed to help restaurant teams thrive. With an easy-to-use app and industry-specific solutions, 7shifts saves time, reduces errors, and helps keep costs in check for more than 55,000 restaurants. To learn more, please visit www.7shifts.com.

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SOURCE 7shifts