--- title: "How 62 Percent of AI Users Are Successfully Lowering Their Labor Costs" url: https://burnaze.com/article/19a72b08-095e-49e4-9311-08c704b77a16 source: "QSR Magazine" original_url: https://www.qsrmagazine.com/sponsored_content/how-62-percent-of-ai-users-are-successfully-lowering-their-labor-costs/ author: "Drew Filipski" category: "Operations" topics: ["Operations","Technology"] published: 2026-07-22T16:41:00.000Z modified: 2026-10-31T14:56:59.865Z image: https://www.qsrmagazine.com/wp-content/uploads/2026/07/paid_ads-qsr-july_2026-sotri_header-1400x922-1.jpg --- # How 62 Percent of AI Users Are Successfully Lowering Their Labor Costs **TL;DR:** Sixty-two percent of AI users in the quick-service industry have successfully lowered their labor costs through automated forecasting and scheduling, according to Restaurant365's 2026 State of the Restaurant Industry Mid-Year Report. The report also found that 77 percent of operators experienced higher labor costs in the first half of 2026, with 64 percent operating below full capacity. *By Drew Filipski, originally published in QSR Magazine on 2026-07-22. [Read the original](https://www.qsrmagazine.com/sponsored_content/how-62-percent-of-ai-users-are-successfully-lowering-their-labor-costs/).* ## Key facts - 62% of AI users reduced labor costs - 77% of operators experienced higher labor costs in 2026 - 64% are operating below full capacity ## Story Real-world gains are coming from automated forecasting and scheduling. Labor costs have not stopped rising for quick-service operators. But the industry’s outlook is beginning to shift. Restaurant365’s 2026 State of the Restaurant Industry Mid-Year Report found that 77 percent of operators experienced higher labor costs in the first half of 2026. The impact remains significant: 64 percent are operating below full capacity, 17 percent have limited operating hours, and 7 percent have closed on days they would normally be open. Still, fewer operators expect pressure to intensify. Sixty-one percent anticipate further labor-cost increases through the rest of 2026, down 26 points from 87 percent at the beginning of the year—the lowest forward-looking expectation in Restaurant365’s three-year data set. The crisis is not over. But operators are becoming more proactive about managing one of the largest costs on the P&L. ## Labor cost management “Labor is always going to be a point of concern because it is a major line on the P&L,” says Marc Cohen, solutions architect at Restaurant365. “I think operators are getting savvier at managing it more in real time—not being as reactive to what’s happening in the restaurants, but being more proactive.” For many operators, that starts with scheduling around real sales patterns rather than broad daily forecasts or a manager’s best estimate of a busy shift. Cohen says operators need to “stop managing by the shift and start managing by the hour.” In high-volume quick-service settings, that can mean analyzing sales and labor in 15-minute increments, then scheduling to the peaks and valleys of guest demand. “If you assume you’re going to do $8,000 on a Friday, we’re going to look at historically what your hourly sales volume was and break that $8,000 down into those hourly buckets,” Cohen says. “Now you can schedule to that hour.” The objective is not simply fewer scheduled hours. It is to better match labor with traffic, throughput, and production needs. Sales can spike and fall throughout the day while labor stays relatively flat. Scheduling to demand helps reduce overstaffing during slower periods without compromising service during rushes. Labor flexibility is another opportunity, but many operators have yet to fully embrace it. Just 14 percent of respondents said at least 76 percent of their staff is cross-trained. Meanwhile, 29 percent said only 11 to 25 percent of their teams are cross-trained, and 17 percent reported cross-training 10 percent or less of their employees. Cross-training helps teams cover callouts and changing demand, but its value reaches beyond daily coverage. It provides employees with more skills, responsibilities, and opportunities to advance. “The more you learn, the more you know, the more stations you can work, the more we’re going to pay you, the more we’re going to schedule you,” Cohen says. “You are leveling up, and therefore, you are going to be rewarded for it.” That progression can support retention at a time when recruiting and retaining staff is the top challenge for 32.9 percent of operators, up from 18 percent at the beginning of the year. Yet staff enhancements as a top investment priority have dropped to 16 percent, compared with 35 to 37 percent in mid-2024. ## Staff training and retention “You have to have a program,” Cohen says. “It can’t just be something you’re making up on the fly.” A consistent, interactive training process helps employees feel prepared and connected from the start. Cohen says digital training that includes rewards, milestones, and visible progress can create a stronger sense of achievement than relying on manuals or informal shadowing alone. AI can also support a more disciplined labor strategy. The report found that 62 percent of operators using AI said it has reduced labor costs, while roughly one in three users reported overall cost reductions of 6 percent or more. For skeptical operators, Cohen recommends treating AI as a business analyst—not a replacement for people. It can help evaluate forecasts, employee availability, and sales data to build smarter schedules and reduce managers’ administrative workload. “If AI can remove that admin piece, or at least help support it, that gives them more time to focus on what they really should be doing,” Cohen says. “Managing the people in the restaurant and engaging the guests.” Operators need a unified platform that transforms raw data into a clear roadmap for execution. Restaurant365 provides that foundation, integrating accounting, inventory, and workforce management into a single, specialized enterprise solution. By parsing sales and labor data into 15-minute increments, Restaurant365 allows operators to move beyond reactive scheduling and align staffing levels with actual demand. Whether through automated forecasting, streamlined training programs, or AI-driven scheduling assistance, the platform empowers managers to reduce administrative friction and refocus on what matters most: growing the business through consistent throughput and exceptional guest experiences. ## Entities - QSR Magazine (publication) - restaurant operations (topic) - Operations (sector) - ai implementation (topic) - Drew Filipski (person) - Restaurant365 (company) - staff training (topic) - labor cost management (topic) - Marc Cohen (person) --- Originally reported by Drew Filipski, QSR Magazine (https://www.qsrmagazine.com/sponsored_content/how-62-percent-of-ai-users-are-successfully-lowering-their-labor-costs/). Summarized by Burnaze (https://burnaze.com/article/19a72b08-095e-49e4-9311-08c704b77a16).