National Restaurant Association highlights workforce investment as key to industry profitability

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Michelle Korsmo President & Chief Executive Officer at National Restaurant Association | Official website

National Restaurant Association highlights workforce investment as key to industry profitability

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The National Restaurant Association released its 2026 Research Insights: Hiring and Staffing paper on Apr. 23, emphasizing that investing in employees is the most important step restaurants can take for long-term success. The report, supported by Workday, finds that with over 10 percent of the U.S. workforce employed in restaurants, focusing on staff development and technology leads to better business outcomes.

This topic matters because restaurants play a major role in community development and economic opportunity, according to the official website of the National Restaurant Association. The industry is also noted as the nation's second-largest private-sector employer.

Michelle Korsmo, President & CEO of the National Restaurant Association, said, “Restaurants are a cornerstone of America’s workforce, developing skills that carry into other industries and offering viable careers across more than seventy roles. This report highlights how investing in people—through strong hiring, manager development, and supportive technology—strengthens the guest experience and reinforces restaurants’ role as a key driver of the U.S. economy.”

The report points out that understaffing remains a significant challenge for operators. Nearly eight out of ten short-staffed operators say it limits their ability to grow or succeed; being short even one team member can cost hundreds per shift or thousands annually. Dr. Chad Moutray, Chief Economist at the association said: "Understaffing is not a marginal inconvenience—it is a material drag on growth, service quality, and sales… Being short just one employee can cost a restaurant thousands of dollars in annual sales." Nearly half of understaffed locations cannot operate at full capacity while others reduce hours or close certain days.

Technology adoption is helping some operators address these issues by reducing hiring timelines from weeks to just days using automated tools; nearly half use scheduling software while digital onboarding has become more common. However only about one-quarter use artificial intelligence tools so far.

Strong management also emerged as essential for restaurant performance with most operators prioritizing team culture-building skills when hiring managers over financial expertise alone. “With the labor market stabilizing, restaurant operators are focused on building strong high-performing teams,” Korsmo said. “Leadership engagement and smart use of technology are delivering better outcomes for employees guests and the business.”

The association advances industry interests through advocacy education collaboration according to its official website (https://restaurant.org/). It extends its reach nationwide via partnerships with state associations supporting businesses large and small across all fifty states.

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