As July begins, restaurant operators find themselves at the pivotal midpoint of the year. With Q4 planning approaching, now is a great time to pause, evaluate, and realign operations for better year-end outcomes. A strategic mid-year review can reveal hidden inefficiencies, optimize your team, and emphasize key areas for investment or correction.

Here’s what every restaurant operator needs to review now to ensure a profitable second half of the year.

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1. Labor Costs and Scheduling Efficiency

Labor continues to be one of the most volatile line items in a restaurant’s P&L. Use July to:

• Compare year-to-date labor percentages to your targets

• Evaluate hourly productivity and peak vs. off-peak staffing

• Audit your scheduling software for forecasting accuracy

• Identify top performers and training gaps

According to the U.S. Bureau of Labor Statistics, the average hourly wage for restaurant workers has risen over 21% since 2020, reflecting ongoing labor pressure across the industry. This makes labor audits even more critical at mid-year.

2. Menu Performance and Profitability

Menu engineering isn’t just for launches — it’s a vital mid-year tool for improving profit margins.

• Analyze sales data for top- and bottom-performing items

• Adjust pricing based on ingredient cost shifts

• Eliminate low-margin or low-selling items

• Consider summer LTOs to test new dishes or reintroduce fan favorites

With food-away-from-home prices up 4.1% year-over-year as of May 2025, according to the U.S. Department of Agriculture, keeping menu costs in check and updating pricing strategies can significantly impact profitability.

3. Technology ROI and Guest Experience

How well is your tech stack serving you and your guests?

• Review KPIs tied to POS, online ordering, loyalty, and delivery integrations

• Evaluate friction in the guest journey: including ordering, payment, pickup, feedback

• Audit third-party vendor contracts to avoid unnecessary fees or outdated services

If tech isn’t saving labor or improving customer experience (CX), it’s time to rethink your solutions.

4. Staffing and Culture Check-In

High turnover rates mean that even stable teams can become vulnerable quickly. Conduct an internal review of:

• Employee satisfaction and feedback (consider pulse surveys)

• Training gaps or missed onboarding milestones

• Leadership performance and delegation habits

• Retention trends by role or shift

Summer is also a good time to implement or revamp incentive programs, especially before the holiday rush.

5. Financial Health: Year-to-Date vs. Forecast

Mid-year financials should be more than a report — they should guide your next steps. Review:

• Actuals vs. budget on all major expense categories

• Month-over-month COGS trends

• Cash flow status and emergency reserve levels

• Current debt obligations and interest exposure

From there, you can adjust budgets for Q3 and Q4 and create targeted cost-control strategies.

6. Marketing Momentum

It’s easy to let marketing become reactive instead of strategic. July is the right time to:

• Review campaign performance (email, SMS, social, local SEO)

• Evaluate how you're capturing customer data

• Plan your back-to-school, fall, and holiday promotions

• Refresh outdated signage or digital assets

Operators with consistent, strategic marketing calendars often outperform competitors in high-stakes seasons.

Final Thought: Don’t Just Check—Act

A mid-year review only matters if you take action. Even modest adjustments in July can pay off exponentially in the fourth quarter. Consider working with a restaurant consultant to get an outside perspective and fine-tune your strategy.

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