Instant Payments Podcast Ep 06 (Part 1)
If you ask most restaurant operators what keeps them up at night, they’ll tell you it’s two things: food and labor costs. And right now, both are moving in the wrong direction.
In Ep 06 Part 1 of the Instant Payments Podcast, I sat down with Matt Umholtz, President and CRO of AllianceHCM, who has spent decades helping some of the country’s largest restaurant brands scale sustainably. Our conversation centered around a simple truth that’s easy to overlook when margins tighten – you may not be able to control the price of beef, but you can control what turnover costs you.
Food Costs Are Rising — Labor Is Where You Can Win
For most operators, labor is the most controllable line on the P&L. It’s where awareness, education, and technology can drive real change.
As Matt put it, “The best operators train their general managers to speak the language of the P&L. When a manager understands how scheduling decisions, overtime, and turnover impact labor costs, they make smarter choices that protect margins.”
Training managers to think like business owners – not just schedule-makers – creates discipline across every location. It also unlocks a culture where employees understand how their roles connect to financial results.
The True Cost of Turnover
The National Restaurant Association estimates that it costs roughly $5,800 to replace a single restaurant employee, and, as Matt notes, the average quick-service restaurant experiences 150% turnover annually.
When you do the math – it’s a staggering number.
And the truth is, turnover doesn’t just hurt financially. It erodes culture, consistency, and guest experience. The operators who are winning today aren’t necessarily paying more; they’re investing in keeping the team they already have.
That starts on day one. As Matt shared, “The best operators are reducing those costs by getting employees emotionally invested from the start – using onboarding and storytelling to connect new hires to the company’s mission before the first shift even starts.”
When Pay Access Becomes a Retention Tool
One of the most effective – and overlooked – ways to reduce turnover is by making it easier for employees to access their own wages.
“The reality,” Matt said, “is that many hourly employees decide to go to a shift based on whether they have enough gas money to get there. With products like Instant Financials’, employees can get the money they need to get to a shift – sometimes it’s just $30 or $50, but it makes all the difference.”
That access doesn’t just improve attendance – it builds trust. When employees know they can count on their employer for financial stability, they stay longer, perform better, and bring their best selves to work.
At Instant, we’ve seen employers reduce turnover by up to 35% simply by offering on-demand pay. That’s not a benefit — that’s a business strategy.
Operational Excellence Through Smarter Payroll
Labor costs don’t have to be a black box. When payroll systems, scheduling tools, and HR data are unified, operators can see exactly where their costs are leaking – and where better decisions can drive results.
Predictive scheduling tied to sales forecasts or local events, like Matt described, helps ensure teams are staffed to demand. When food prices fluctuate and promotions create temporary volume spikes, this kind of intelligence can make or break a P&L.
Payroll innovation – from earned wage access to scheduling optimization – has evolved from a back-office process to a frontline advantage.
The Bottom Line
As food costs continue to rise, labor control becomes the most important strategic lever an operator has.
The brands that succeed in this environment are the ones who treat their people like their greatest asset – not just a cost to manage. They’re the ones that connect financial empowerment to operational excellence.
When you give employees faster access to the wages they’ve already earned, you’re not just easing financial stress – you’re strengthening the foundation of your entire business.
And in an industry built on consistency, that kind of stability is priceless.
🎧 Listen to my full conversation with Matt Umholtz, President and CRO of AllianceHCM, on the Instant Payments Podcast.
