Artificial intelligence is changing nearly every industry from finance to marketing to manufacturing automating routine tasks and transforming how people work. But one sector stands apart: the restaurant and foodservice industry. The act of preparing a meal, welcoming a guest, or creating a dining experience is deeply human. It relies on creativity, empathy, teamwork, and hospitality qualities that can’t easily be coded or replaced by machines.

So, if restaurants are relatively “AI-proof,” why are so many still struggling to find and keep staff?

Across Canada, restaurants and bars continue to face chronic labour shortages. Even as customer demand returns and the industry stabilizes post-pandemic, operators report persistent hiring challenges. Restaurants Canada data shows that nearly 60% of foodservice operators are struggling to fill key positions, especially in kitchen and front-of-house roles.

The problem isn’t automation it’s a perfect storm of economic pressure, shifting worker expectations, and outdated perceptions about restaurant work. And the solution may come not only from HR policies but also from smarter procurement strategies and partnerships that help operators reinvest in their people.

The paradox of the people business

Hospitality has always been a “people business.” Every dish plated, every drink poured, and every smile shared is powered by human energy. In a world increasingly driven by AI, that should be an advantage a competitive differentiator that keeps restaurants thriving.

Yet operators are discovering the paradox: their greatest strength the human touch has become their biggest challenge.

The hospitality workforce is shrinking, not because the work disappeared, but because fewer people are willing to do it. Low wages, unpredictable hours, and pandemic-era burnout have pushed many experienced workers into new careers. Younger generations are entering the workforce with different expectations: flexibility, stability, and career growth opportunities benefits that restaurants have historically struggled to provide.

So even though restaurant jobs are safe from AI disruption, they’re not immune to the broader workforce transformation happening across the economy.

1. Wage pressure and economic reality

The first factor is economic. The cost of living in Canada has climbed steadily, with inflation driving up everything from groceries to rent. For many restaurant workers, wages have not kept pace with these increases.

Restaurants, on the other hand, are operating on razor-thin margins. Between food inflation, energy costs, and higher supplier pricing, most operators simply don’t have the flexibility to raise wages significantly without passing the costs on to guests.

That’s where the right GPO (Group Purchasing Organization) or procurement partner becomes critical.

A Food & Beverage GPO helps restaurants reduce operational costs through collective buying power, allowing them to secure competitive pricing on ingredients, equipment, and supplies. By optimizing spend across their foodservice operations, restaurants can redirect savings toward wages, benefits, and retention programs all without compromising profitability.

This kind of strategic procurement isn’t just a back-office function anymore; it’s becoming a workforce enabler. By lowering costs through smarter buying, operators can reinvest in their people.

2. Burnout, balance, and lifestyle shifts

Another major reason for the staffing shortage is burnout. Hospitality work is famously demanding: long shifts, late nights, and constant pressure to deliver exceptional service.

During the pandemic, many workers reassessed their careers and left the industry altogether. Some pursued remote jobs with better work-life balance. Others started small businesses or moved into different service sectors with more predictable hours.

The result is an industry facing a perception problem. Even though restaurant jobs offer creativity, camaraderie, and real human connection, they’re viewed by many as high-stress and low-reward.

To rebuild its workforce, foodservice must evolve. Some progressive operators are experimenting with four-day workweeks, guaranteed scheduling, and cross-training programs that give staff more variety and skill development.

And again, cost control through a GPO helps make these workforce innovations possible. When restaurants can manage procurement more efficiently, they can spend less on supplies and more on people they can design workplaces that attract and keep talent.

3. Perception and career pathways

Restaurant work has long been seen as a temporary job, not a long-term career. But that perception is outdated. The modern food service industry offers diverse and dynamic career paths from culinary arts and beverage management to operations, marketing, and procurement.

Procurement partners and Food & Beverage GPOs can play a vital role here as well. By providing access to training resources, supply chain insights, and category management support, GPOs help operators run smarter businesses. That, in turn, creates more professional, stable environments where employees can see a future.

When workers know that their restaurant is supported by a structured procurement system with reliable suppliers, predictable pricing, and consistent product quality they feel more confident in the stability of their workplace.

This stability helps build loyalty, turning short-term employees into long-term team members.

4. Technology can help, but it’s not the full answer

There’s no question that technology is reshaping foodservice operations. From digital menus and self-ordering kiosks to scheduling software and inventory management tools, technology can reduce administrative burdens and streamline operations.

But AI can’t replicate the heart of hospitality. Guests still crave the warmth of human connection a friendly server, a personal recommendation, a well-timed smile.

The most successful operators are using technology alongside human staff, not in their place.

Here too, a Food & Beverage GPO like Entegra can be an enabler. Entegra now offer digital procurement platforms that simplify purchasing and supply management. These tools save managers hours of manual work, freeing up more time to focus on staff training and guest experience.

When technology reduces administrative overload, it gives teams room to do what humans do best connect, create, and care.

5. The opportunity: human hospitality meets smart operations

Despite today’s workforce challenges, the restaurant industry has a unique advantage: it’s rooted in human experience. AI can’t replicate a chef’s creativity, a bartender’s intuition, or a server’s ability to make guests feel seen.

What operators need is a way to balance that human core with smarter, more sustainable operations.

That’s where partnering with a Entegra a procurement expert can transform the game. By working with a trusted Food & Beverage GPO, restaurants can:

• Reduce overhead through collective purchasing power
• Streamline procurement to save time and eliminate waste
• Access data insights to plan menus and inventory more efficiently
• Leverage supplier relationships for better terms and sustainability options
• Reinvest savings into higher wages, better benefits, and stronger staff retention

A GPO doesn’t replace human effort it amplifies it. By removing inefficiencies, it allows operators to focus on the part of the business that matters most: the people.

6. Why this matters now

The Canadian restaurant industry is entering a critical phase. Economic uncertainty remains high, consumer expectations are evolving, and workforce shortages threaten long-term growth.

Yet, amid these challenges, opportunity abounds. Restaurants that prioritize their teams and build strong operational partnerships can set themselves apart.

Working with a procurement partner or Food & Beverage GPO isn’t just about saving money; it’s about creating breathing room. It’s about freeing up the financial and operational bandwidth to take care of people because people are what make this industry AI-proof in the first place.

When staff feel valued, trained, and supported, they deliver better service. Better service builds loyalty. Loyalty builds growth. And that cycle starts with smarter business foundations.

Conclusion: People power meets procurement power

The restaurant industry may be one of the few truly AI-proof sectors but it’s also one of the most human-dependent. Its success depends on people: their passion, creativity, and ability to make every guest feel at home.

To solve today’s staffing challenges, restaurants must think differently. Beyond wages and scheduling, they need to address the root causes cost pressures, outdated systems, and inefficiencies that limit what they can offer their people.

That’s where Entegra comes in. By unlocking savings and operational support, Entegra empowers restaurants to invest in their most valuable asset their teams.

See what Entegra can do for your business