HOTEL BUSINESS REVIEW
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Using Digital Solutions to Overcome Labor Crises and Enhance Efficiency

By Tony Fernandez Chief Executive Officer & President, MTech Mobility | May 2025

The hospitality industry has grappled with significant labor shortages in recent years, not only impacting businesses across the board but also creating severe challenges for many workers. Notably, the restaurant sector stands as a major employer in the U.S., with the National Restaurant Association reporting nearly 15 million individuals working within this industry.

Staffing shortages have become increasingly severe, with many restaurants unable to fully staff their operations. In fact, the restaurant industry lost more than one million jobs during the COVID-19 pandemic, and recovery has been slow. The latest figures indicate that 81% of restaurant operators report facing staffing shortages in 2024, a significant rise from previous years.

The labor crisis in hospitality is compounded by broader national workforce challenges. A report from the U.S. Chamber of Commerce highlights that industries such as hospitality, healthcare, and manufacturing are among the hardest hit by labor shortages, with many workers choosing to leave the sector due to high stress and limited benefits.

Burnout and Turnover Rates: A Vicious Cycle in Hospitality

The hospitality industry’s labor crisis is not just about staffing shortages, it is also about employee burnout and high turnover rates. The nature of work in hospitality is inherently demanding, with long hours and physically demanding tasks leading to fatigue and burnout. This turnover creates a cycle of staffing instability, which further strains the remaining workforce and negatively impacts service quality.

Compounding these challenges, rising labor costs and financial instability are pushing more workers to leave the industry. Nearly all full-service operators report increased labor expenses, while voluntary resignations in the accommodation and food services sector have consistently exceeded 4% per month since mid-2022. At the same time, inflation and shifting tipping habits have eroded take-home pay, making it harder for hospitality workers to justify staying in roles that already demand significant physical and emotional energy.

Leveraging Technology to Combat Labor Shortages and Improve Efficiency

In response to ongoing labor shortages, many hospitality businesses are turning to innovative technology solutions to streamline operations, reduce reliance on manual labor, and enhance customer satisfaction. Tech-driven dining solutions are revolutionizing hotel food and beverage operations, showcasing how technology is reshaping the industry. Tools like contactless payment solutions, mobile ordering, self-service kiosks, and AI-driven solutions are helping businesses reduce manual labor dependence while maintaining high standards of customer service.

These technologies are not only meeting rising customer expectations but also providing employees with more flexible, less stressful work environments. By embracing these innovations, restaurants and hotels are tackling labor shortages and staff burnout while ensuring long-term profitability and operational efficiency.

Contactless Payment Solutions and Mobile Ordering: Enhancing Efficiency and Customer Experience

One of the most prominent technological advancements in the hospitality sector is the widespread adoption of mobile ordering and contactless payment solutions. These solutions reduce wait times and improve customer satisfaction, which in turn leads to higher table turnover rates and increased revenue.

Recent data points that mobile ordering can reduce operational costs and improve the customer experience by streamlining the ordering process, reducing errors, and enabling customers to customize their orders with ease. This shift to mobile-based solutions allows businesses to maximize efficiency while offering customers more control over their dining experience.

With the implementation of these technologies, restaurants can operate with fewer staff members while still meeting customer expectations. This is especially critical during peak hours when staff shortages are most acute.

Mobile point-of-sale (mPOS) systems further enhance workflow efficiency by sending orders directly from the table to the kitchen, minimizing errors and reducing service time. As customer expectations continue to shift toward seamless digital experiences, businesses that adopt these innovations will be better positioned to meet demand while maintaining strong employee satisfaction.

By streamlining the payment process, contactless solutions also help reduce stress for employees, allowing them to focus on service rather than transaction logistics. Faster checkout times mean fewer bottlenecks, enabling higher table turnover and increasing potential tips for staff.

Self-Service Kiosks: Boosting Efficiency, ROI, and Customer Satisfaction

Self-service kiosks have become increasingly common in quick-service restaurants (QSRs) and hotels as a means to reduce labor costs while enhancing the guest experience. These kiosks allow customers to place orders, customize their meals, and make payments without the assistance of a person. This reduces the pressure on frontline staff, allowing them to focus on tasks that require more human interaction.

Implementing self-service kiosks in restaurants can enhance operational efficiency and significantly increase return on investment (ROI). The cost of a kiosk is often quickly recovered through higher order volume. Additionally, kiosks often lead to higher average order values due to upselling prompts, contributing to increased revenue.

The ability of self-service kiosks to reduce the need for manual order-taking also helps mitigate the impact of labor shortages by redistributing work more efficiently across the available staff. The rise of self-service options in the restaurant industry also aligns with changing consumer preferences, as customers increasingly prefer to have more control over their ordering experience.

Contactless Solutions: Improving Guest Experience and Reducing Employee Stress

The demand for contactless solutions has surged in recent years, particularly in the wake of the COVID-19 pandemic. In the hospitality sector, contactless check-ins, mobile key systems, and QR codes for menus have become integral parts of the customer experience. According to a 2024 report by the American Hotel & Lodging Association (AHLA), 74% of hotel guests prefer mobile check-ins, and 61% of diners report that they are more likely to return to a restaurant that offers contactless payment options.

For businesses, these technologies offer several benefits. They reduce the workload on staff, as guests can manage check-ins and payments independently, leaving employees more time to focus on other tasks. This, in turn, helps alleviate burnout and improve employee satisfaction. By reducing physical labor, contactless solutions contribute to better working conditions and lower employee turnover.

In addition to guest satisfaction, contactless systems improve employee well-being by reducing the need for workers to engage in repetitive, physically demanding tasks. This technology enables staff to focus on more meaningful interactions with customers, leading to a more fulfilling work environment and reducing stress.

Financial Benefits and ROI: A Strategic Investment in Hospitality’s Future

Adopting technology in the hospitality industry is not just about addressing labor shortages, it is also a smart financial decision. Technology-driven solutions can generate significant returns on investment by improving efficiency, reducing waste, and enhancing customer loyalty.

Self-service kiosks, for example, not only improve operational efficiency but also contribute to higher order values through upselling features. Restaurants that implement kiosks often experience a significant increase in revenue per customer by offering targeted promotions and upsells. Similarly, mobile ordering and payment platforms have been shown to reduce operational costs by enabling smoother customer interactions.

Technology that helps with inventory management, like restaurant automation tools, can reduce food waste and improve cost management. Automation systems that track inventory and forecast demand can save restaurants up to 10% in food costs.

By integrating these tools, hospitality businesses can make informed decisions that positively impact both their bottom line and their operational efficiency. These financial benefits make the adoption of technology a wise long-term investment that addresses the challenges of labor shortages while contributing to overall profitability.

Embracing the Future: The Growing Role of Automation in Hospitality

As we look to the future, the role of AI and automation in the hospitality sector is expected to grow. AI-driven tools, such as chatbots, virtual assistants, and automated inventory systems, are already improving operational efficiency. AI can also help restaurants optimize staffing levels by predicting customer demand, ensuring that businesses can adjust their labor needs accordingly.

Inventory management applications further enhance efficiency by tracking stock levels in real time, automatically alerting staff when supplies are low, and even triggering reorders. These systems help minimize food waste, prevent shortages, and reduce the mental burden on managers, allowing them to focus on team morale and customer service.

Automation is also streamlining tasks like check-in, room service delivery, and operational workflows, ensuring employees can dedicate more time to personalized guest experiences and high-quality service.

Navigating the Labor Crisis: Technology’s Role in Shaping Hospitality’s Future

The labor crisis in the hospitality industry shows no signs of abating, but digital solutions offer a pathway forward. By embracing technologies like mobile ordering, self-service kiosks, AI-driven tools, and contactless payment systems, hospitality businesses can improve operational efficiency, reduce labor costs, and enhance both employee and guest experiences.

The financial benefits of these technologies are clear. From reducing food waste and optimizing inventory to increasing customer loyalty and average order values, technology adoption offers significant long-term returns on investment.

As the hospitality sector continues to evolve, the integration of advanced technology will be essential to addressing labor shortages and preparing for the future. For businesses that adopt these innovations, the benefits—ranging from improved service quality to enhanced employee satisfaction—will be crucial for navigating the challenges ahead.

Beyond efficiency gains, these digital tools create a more sustainable workforce by alleviating stress and reducing burnout. Automating repetitive tasks and simplifying workflows empower employees to focus on meaningful interactions, fostering a healthier, more engaged workplace. In a competitive industry, businesses that prioritize both technology and employee well-being will have a lasting advantage.

Mr. Fernandez

Tony Fernandez, CEO and President of MTech Mobility, is a visionary leader with over 20 years of experience in enterprise mobility, IT services, and multi-industry management. Mr. Fernandez has spearheaded innovative technology solutions across retail, hospitality, healthcare, travel, and the public sector, helping businesses streamline operations and maximize productivity. Known for his customer-first approach, he has played a pivotal role in developing cutting-edge mobility strategies that drive business growth and efficiency. As Chief Executive Officer and President of MTech Mobility, he continues to shape the future of enterprise technology, ensuring companies worldwide stay ahead in an increasingly digital and connected world.

Extended Biography & Contact Information

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The following is the Privacy Policy for HotelExecutive

We can be reached via telephone, email, or online at our contact page. When you visit our site we do not log any information regarding your domain or email address. Information Sharing: We do not share user information with any third parties other than via press release distribution as described below.

Hotel Newswire is a newswire service that distributes press releases on behalf of our users. If you decide to submit a press release for distribution through our system we will transmit your entire press release including any personal information therein contained to our media contacts and online distribution points including search engines. This is the only redistribution of your information that we engage in. Your submission of press releases through our system indicates consent with this policy. The information we collect during your registration process is used to notify users about updates to our service and inform users of any special events hosted by Hotel Newswire. This information is not shared with other organizations for commercial or non-commercial purposes.

Cookies: Our system requires the use of cookies to enable the user to log back into our website to access information from the newswire, without having to log in each time using the required username and password.

If you do not want to receive email from us in the future, please let us know by following instructions included in our communication with you. Users who supply us with telephone numbers online may receive telephone contact from us regarding their account, or informing them of new products and services available on the HotelExecutive website. If you do not wish to receive such telephone calls, please edit your account and remove your phone number from your account profile. This can be done from your user account menu.

Ad Servers: We do not partner with or have any relationship with any ad server companies. From time to time, we may use customer information for new uses not previously disclosed in our privacy notice. If our information practices change at any time, we will post the policy changes to our website to notify you of these changes and provide you with the ability to opt out of these new uses. If you are concerned about how your information is used, you should check back at our website periodically.

Upon request we provide site visitors with access to all information (including proprietary information) that we maintain about them. Users can access this information by logging in to their account.

Security: We always use industry-standard encryption technologies while transferring and receiving user data exchanged with our site. We have appropriate security measures in place in our physical facilities to protect against the loss, misuse, or alteration of information that we have collected from you on our site. We do not store credit card information in our systems.

If you feel that this site is not following its stated information policy, you may contact us.