The Best HR Software for Restaurants

There are many moving parts when it comes to running a restaurant, one of which is managing your staff. Instead of manually managing HR functions such as employee onboarding, payroll and workforce analytics, restaurants can simplify their human resources with HR software. The best HR software helps streamline HR processes, pay employees on time and, ultimately, recruit and retain great workers. To help you find the best HR software for your restaurant, we evaluated the top HR solutions on the market, comparing their features, pricing, ease of use, functionality and more.

Human resources (HR) software is a tool for managing workforce functions, such as employee recruitment and onboarding, payroll processing, benefits administration, performance management, risk and compliance, and administrative HR processes. It can also help with managing HR challenges that are especially pertinent to restaurants, such as employee safety, scheduling, retention, training and onboarding, and employee morale.

Types of HR software that can be valuable for restaurants include payroll software, time and attendance systems, scheduling software and other HR software.

HR software benefits restaurants by supporting and streamlining key tasks, like hiring and training, scheduling employees, and managing payroll.

Here are 10 key benefits HR software can extend to restaurants:

1. Employee onboarding: Restaurant HR software can facilitate employee onboarding by providing a platform for storing training materials, policy documents and other essential resources. New hires can be directed to this one central archive for everything they need to start successfully.
2. Employee management: HR software allows restaurants to maintain a centralized database of employee information, making it easy to manage employee profiles, contact details, work schedules and job roles. Restaurants can also create and manage employee schedules more efficiently with HR software, which helps to streamline communication, lower the risk of errors associated with manual data entry, ensure adequate staffing during peak hours and reduce scheduling conflicts.
3. Employee engagement: HR software can help improve employee engagement through features such as performance recognition, feedback and evaluations, and opportunities for professional development.
4. Reduced administrative burden: By automating repetitive HR tasks, such as manual data entry and paperwork, HR software frees up staff to focus on more strategic activities.
5. Accurate time tracking and payroll processing: Automated time and attendance tracking helps restaurants accurately monitor employee work hours, breaks and overtime. It also simplifies payroll processing by automating calculations, tax deductions and direct deposit. This reduces the administrative burden, minimizes the risk of payroll errors and ensures compliance with labor laws.
6. Seamless benefits administration: Restaurants often offer benefits such as health insurance, wellness programs, professional training, and employee discounts. HR software helps you manage these benefits efficiently, making it easier for employees to access and utilize them.
7. Internal communication and collaboration: HR software often includes communication tools, which can improve teamwork, coordination and overall efficiency among restaurant staff.
8. Regulation compliance: Restaurants must adhere to various labor laws and regulations. HR software helps ensure compliance with these regulations by providing features such as automated wage calculations, overtime tracking and leave accruals.
9. Data-driven decision-making: HR software generates various reports and analytics related to employee attendance, performance, turnover rates and more. These insights help restaurant managers make informed decisions about staffing and operations.
10. Employee self-service: Many HR software solutions offer self-service portals for employees to access their own information, request time off, view pay stubs and update personal details. This empowers employees and reduces the administrative workload for HR staff.

Overall, HR software for restaurants can significantly enhance operational efficiency, compliance and employee satisfaction, leading to improved customer service and business success.

The overall cost of HR software will vary based on your restaurant’s size, the number of employees and the specific HR features you need. Most restaurant HR software is priced on a per-employee basis, with an average rate of $5 to $20 per employee per month. Payroll, employee benefits administration and performance management services can often be added to your plan for an extra fee. Although it’s less common, some HR software providers also charge a setup fee and/or a monthly base fee ranging from $40 to $100 per month.

Actual costs for your restaurant will vary, so it’s best to get quotes from several HR software providers before you select a vendor.

Contract Lengths

Contract length also varies by vendor. While many HR software solutions are available month to month, others require annual contracts (and some offer both options). If you’re opening a new restaurant or aren’t sure how long you will need HR software, it may be a good idea to choose a month-to-month solution to start. However, if you’re confident that you will be using HR software for the long term, an annual contract will often save you money.

Free Trials and Demos

Only some HR software companies offer free trials, but most companies at least offer some sort of demo to give you a firsthand look at the platform and its features. This is a great way to see if a particular HR software solution is a good fit for your restaurant before you purchase it.

The right HR software can make a big difference to your food service business, but that doesn’t mean it’s easy to find. If you aren’t sure where to start, we’ve got you covered. We spoke with restaurateurs and HR professionals to determine what you should consider when choosing an HR software for your restaurant.

1. Determine which features you need.

Some restaurants want a comprehensive solution that streamlines recruitment, manages employee performance, tracks productivity and mitigates legal risks. However, for many others, a simple software to schedule shifts, track employee hours and process payroll will suffice – we learned this from Jessica Hart, MBA, owner and founder of Hart Consulting.

Hart has years of experience helping hospitality businesses manage their HR, so she knows just how important it is for restaurants to optimize employee management, reduce risk and ensure compliance.

“I prioritized hourly scheduling (time and attendance), shift swapping via app, tip reporting, and POS integration,” Hart told us. “These features are essential for smooth operations and payroll accuracy in a restaurant environment.”

Hart then went on to elaborate why some of these features are essential for restaurants.

“Shift swapping is key in restaurants, so I needed a system that lets employees manage their shifts while allowing me to track changes,” said Hart. “Time and attendance is crucial for compliance, and tip reporting ensures accurate payroll taxes.”

Assessing what features are necessary for your restaurant is key to choosing the right HR software. However, you should also consider what features you might need in the future as well. Do you plan on hiring more workers or opening a second location? These are things you will want your HR software to support as you expand.

2. Evaluate functionality and ease of use.

Evaluate how easy the software is to learn and implement. What is the average learning capacity of your workers? Will they have time to learn a complex platform with extensive features, or do you need easy-to-use software that is quick to pick up? Either way, you want to ensure the software can be used properly by your workers.

“Remember, payroll compliance is your responsibility,” said Hart. “The software will only process what you set up, so if something’s wrong – like unclaimed tips or incorrect OT calculations – you’re liable.”

Most HR software has employee self-service features that are rather intuitive. However, the initial implementation for some software can take a while. Keep this in mind when you’re comparing restaurant HR software.

3. Consider third-party integrations.

Arguably one of the most important things your restaurant will need is a point-of-sale (POS) system. Having a POS that can integrate with your HR software can help you align labor costs with sales projections for better scheduling. However, Hart suggests choosing your POS system first and then finding an HR software that is compatible with it.

“Implementing HR software only to change your POS later can complicate integration,” said Hart. “If you’re happy with your POS, you’ll have fewer headaches.”

You’ll also want to consider which other integration capabilities you might need, like accounting software or performance management software. Tying these systems together means more automated data sharing, saving the time and energy needed to enter data manually and eliminating the risk of human error.

4. Compare pricing and contracts.

Once you have an employee headcount and an HR features list, it will be easier to get a side-by-side look at the cost of each HR software platform you are considering. Find adequate software that fits within your budget. One pricing feature you may want to prioritize is a month-to-month contract. Food service is a volatile industry, especially if you’re opening a restaurant for the first time, so it can be intimidating to be locked into an annual contract. Most popular HR software vendors offer month-to-month contracts.

HR software can come with a wide range of features, some of which are especially useful for restaurants. Here are five essential restaurant HR software features to consider in your research.

Employee Onboarding

Restaurants tend to have a lot more employee turnover than other industries, especially during seasonal changes, like the beginning and end of summer. This means employee recruitment and onboarding are ongoing. However, manually managing these processes can take up a lot of management’s valuable time. HR software helps ease this burden by automating some of the process.

HR software can include tools to help you recruit new employees through online job postings, offer letter templates with e-signature capabilities, and secure document storage. With workflow automations, you can automatically send new employees their new-hire packets and onboarding checklists to ensure they go through all of the necessary (and sometimes legally required) onboarding steps. As front- and back-of-house workers train, your HR software can track their progress.

Time Tracking

Most restaurant workers are hourly employees, which makes accurate time tracking essential. Popular HR software platforms are cloud-based, which makes it easy for employees to clock in and out from kiosks, tablets and other mobile devices. HR software can often integrate with POS systems as well, further streamlining your employee management capabilities.

Because restaurant workers sometimes work odd hours or have shifts that change each week, HR software helps ensure that your staff members are correctly scheduled and don’t violate overtime laws. HR software can also help you manage paid time off (PTO) and other types of leave.

Payroll and Taxes

Payroll can be one of the most considerable HR headaches for restaurants, but HR software simplifies the process. In addition to ensuring that you track employee hours properly, this software often has built-in payroll features to automate the employee payment process. With multiple pay rates, pay schedules (e.g., weekly, biweekly, monthly) and pay types (e.g., direct deposit, paychecks, pay cards), you can accommodate a wide variety of employee types and wages.

In addition, HR software can often take care of payroll tax responsibilities, such as payroll tax withholdings and W-2 preparation and delivery. Most HR software integrates with popular payroll providers and top accounting software.

Employee Benefits Administration

In years past, employee benefits were often reserved for management, but many restaurants are now providing comprehensive benefits to all employees as a way to recruit and retain workers. Medical, dental and vision insurance; PTO; and 401(k) plans are no longer unusual in the restaurant industry.

HR software typically integrates with popular employee benefits administrators, and some have their own internal platforms to help you administer and manage employee benefits directly. The best platforms even have employee self-service features that can walk staff through the enrollment process for you.

Analytics and Reporting

A somewhat underrated HR software feature that can have a major impact on restaurants is its ability to provide analytics. Most HR software provides reporting and analytics that can be used to improve your restaurant. For example, there are reports that can help you evaluate and improve your recruitment process, as well as reports that provide insight into employee productivity, labor costs, employee satisfaction, turnover rates and absenteeism rates.

If you are still looking for the right HR software for your restaurant, check out these additional options. Each one has met our standard for excellence.

ADP

ADP is a comprehensive platform that can handle all HR-related tasks, such as payroll processing, time tracking and compliance. It’s well-suited for larger restaurant groups with more complex needs. However, it also offers a PEO plan for small and midsize businesses that want additional HR support. Learn more in our detailed ADP review.

Justworks

Another PEO option for smaller restaurants needing full-service HR support is Justworks. This affordable solution can help with payroll, compliance, HR consulting, benefits, time tracking and more. Justworks also offers a payroll plan for those wanting to track and pay employees without the co-employment agreement that a PEO involves. Learn more in our detailed Justworks review.

Connecteam

This workforce management solution has plans specifically geared towards restaurants. Connecteam can help with time tracking, employee scheduling, task management, surveys, workforce communication, HR administration, training and onboarding, document storage and more. Learn more in our detailed Connecteam review.

To determine the best human resources software for restaurants, our team of HR experts and software analysts evaluated an initial list of 26 platforms. We examined each to compare pricing plans and available features, as well as the usability of associated software and the responsiveness and quality of customer support.

After whittling our list down to 8 providers, our experts and analysts studied each solution’s functionality and evaluated the products on more than 100 factors. Ultimately, we chose five HR software platforms as our top recommendations.

These factors were weighted differently in our overall conclusion. The weights were determined based on how much restaurateurs prioritize these criteria when shopping for business software and services and making purchasing decisions.

• Pricing (25%): Our experts and analysts compared and contrasted each vendor’s plans, judging which packages offered the best bang for your buck. They took into account monthly subscription fees, per-employee costs versus flat rates, industry-specific or location-based pricing, and add-on services like payroll processing and performance management.
• Features (25%): We looked for standard HR software functions like recruiting and onboarding, benefits administration, time and attendance, payroll and tax administration, performance management, legal compliance assistance and HR reporting. We also assessed the available integrations and awarded extra points for advanced services, like AI-powered tools and custom permission settings.
• Ease of Use (25%): We tested the software ourselves, gauging each solution’s learning curve, user-friendliness and customization options. We also considered whether there was a fully featured mobile app for employees and administrators to manage HR tasks on the go.
• Customer Service (15%): We evaluated the range of customer service options, including whether phone assistance was provided with all package tiers. We also examined each vendor’s online resources for restaurants interested in self-guided help.
• Scalability (10%): You may have a small team now, but it’s important that you find a software that can grow with your restaurant. We considered what maximum capacity each software had when it came to users and locations. We also factored in the ease with which someone could upgrade or downgrade their plan.

Based on these criteria, we not only determined which HR software our readers could trust but also the ways in which each solution could best serve different hospitality needs. Some platforms were better at certain tasks than others or more suited to a particular type of restaurant. These takeaways informed the “Best for” use cases you see on this page.

To learn more about our methodology, see our full editorial process.