The Cost of Doing Business: A $25/hour Problem

Rising costs are the new normal for restaurant owners, but for George, it feels like a game of financial Jenga—pull one block, and the whole tower could collapse. Labor, insurance, training fees, and maintenance are stacking up faster than profits, leaving tough choices on the table. His question isn’t if to adapt—it’s how to survive.

George runs six quick-service restaurants across Los Angeles and has seen firsthand how the cost of doing business has skyrocketed. Over the past four years, he’s grown his business, but not without serious challenges. Here’s how he’s navigating the chaos while keeping his eye on the future.

Labor Costs: The $25/hour Reality Check

“Minimum wage isn’t $20—it’s $25 when you add taxes, training, and fees,” George explained. Labor costs are squeezing profits tighter than ever, and it’s not just about wages. Insurance has jumped 45%, maintenance costs are up 40–60%, and even mandatory training programs are adding insult to injury.

So, what’s left? “I can raise prices and lose customers, cut quality—which I’ll never do—or lean into tech to save on labor,” George said. None of these options are ideal, but when the margins are razor-thin, even tough decisions feel unavoidable.

Have labor costs forced you to rethink your operations? We’d love to hear how you’re navigating rising expenses—drop us a line and share your story!

Tech to the Rescue (Sort of)

For George, technology isn’t a luxury—it’s a lifeline. “It’s not a factory; there are still people preparing the food,” he said. But as labor costs rise, automation feels like the only viable path forward.

Corporate has already started introducing ordering kiosks, and while George prefers human interaction, he knows what’s at stake. “I can’t ignore the numbers. I need tech to fill the gaps without driving away customers,” he explained. His hope? Tools that are reliable, intuitive, and capable of handling multiple tasks without constant updates or breakdowns. (Seriously, is that too much to ask?)

A Lesson in Adapting and Growing

Over the years, George has learned to work smarter, not harder. By embracing new tools—when they actually work—he’s been able to streamline operations and focus on expansion. But for every win, there’s a challenge: outdated tech, unpredictable regulations, and rising costs that keep pushing the limits of what’s possible.

“Some days, it feels like survival mode,” George admitted. But he’s not slowing down. By balancing innovation with customer-focused service, he’s showing how restaurants can adapt to the ever-changing industry.

Your Turn: Share Your Story

What’s your take on rising costs? How are you using tech to navigate challenges and keep your business thriving? Let us know—your restaurant could be featured in an upcoming blog. Together, we’ll build a better future for the restaurant industry.