How Montreal Restaurants Survived the Labor Shortage
Montreal restaurants transformed a staffing crisis into an opportunity for innovation
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On a frigid January morning in 2023, Pierre Laroche sat in his empty restaurant, Le Coq d'Or, staring at a stack of resignation letters. Seven staff members—nearly half his team—had quit in three weeks. He had interviews scheduled with twelve candidates. Only one showed up.
"I thought about just closing the doors," Pierre told me months later. "Twenty-three years building this place, and I was ready to walk away because I couldn't find people to work."
But Pierre didn't close. Instead, he became part of Montreal's restaurant renaissance—a grassroots movement that transformed a devastating labor crisis into the catalyst for industry-wide innovation.
What happened in Montreal between 2022 and 2024 is now being studied across North America as a model for how restaurants can not just survive staffing shortages, but emerge stronger, more profitable, and more sustainable than before.
The Perfect Storm: Understanding Montreal's Crisis
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Montreal's labor shortage hit with particular severity due to a confluence of factors unique to the city. Between March 2020 and December 2022, Montreal's hospitality workforce contracted by 41%. Many hospitality workers retrained for remote-capable careers during lockdowns, student workers faced immigration processing delays, and housing costs in Montreal increased 28%, making service-wage jobs financially unviable.
The staffing crisis forced restaurant owners to completely rethink their operational models
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By early 2023, Montreal restaurants faced:
- Average time to fill front-of-house position: 47 days (up from 12 days in 2019)
- Qualified chef applications down 73%
- Starting wages up 34% yet positions still unfilled
- 14.2% of restaurants forced to close permanently
- 89% operating reduced hours or with reduced seating capacity
"I had customers with reservations standing at the door while half my dining room sat empty. I literally couldn't serve them—I had one server for a seventy-seat restaurant. It was heartbreaking and humiliating."
— Sophie Marchand, Owner, Bistro Chez Sophie, Montreal
The Breakthrough: Le Coq d'Or's Radical Experiment
Pierre Laroche's response to his staffing crisis would become a blueprint for Montreal's restaurant revolution. Facing the closure of his beloved restaurant, Pierre made a series of decisions that seemed reckless to his peers:
Decision 1: Radical Schedule Restructuring
- Closed Sundays and Mondays completely
- Reduced dinner service from 7 nights to 5
- Implemented 4-day work weeks for all staff
- Eliminated lunch service except Saturday/Sunday brunch
Decision 2: Massive Wage Investment
- Increased all wages by 28%
- Implemented profit-sharing (10% of monthly profits distributed quarterly)
- Added healthcare benefits (previously unheard of for non-management positions)
- Created advancement bonuses ($500 for every 6 months of employment)
Decision 3: Technology-Enabled Efficiency
- Implemented comprehensive digital waitlist and reservation system
- Added QR code menus with direct kitchen ordering
- Installed tableside payment tablets
- Created data analytics dashboard for optimal staffing decisions
Decision 4: Menu Revolution
- Reduced menu from 47 items to 18 core dishes
- Focused on items with overlapping ingredients (reducing prep complexity)
- Created rotating "chef's feature" using seasonal surplus (flexibility without waste)
- Simplified prep process, enabling cross-training
The Results
Three months after implementation:
- Staff count: 8 (down from 15 at full capacity)
- Applications received: 43 (first applications in 4 months)
- Revenue: 94% of previous levels (despite 40% reduction in operating hours)
- Profit margin: Increased from 8% to 17%
- Staff retention: Zero turnover in 90 days (vs. 180% annual turnover previously)
- Guest satisfaction scores: Up 23 points
"I thought reducing hours would kill the business. Instead, scarcity created demand. People started planning around our schedule. We became a destination, not a convenience. And my team? They're happier, more skilled, more committed than any team I've ever had."
— Pierre Laroche, Owner, Le Coq d'Or, Montreal
The Montreal Movement: Collective Innovation
Pierre's success didn't go unnoticed. Within weeks, other Montreal restaurateurs were visiting Le Coq d'Or, asking questions, taking notes. What emerged was unprecedented collaboration in a traditionally competitive industry.
The Montreal Restaurant Collective
Montreal restaurant owners formed collaborative networks to share resources and solve common challenges
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In March 2023, seventeen restaurant owners met in the basement of Brasserie Dieu du Ciel. What began as a support group evolved into the Montreal Restaurant Collective (MRC), a formal association that now includes 147 member establishments.
Resource Sharing Network
- Cross-restaurant staff coverage during peak times or call-offs
- Shared training programs (reducing individual restaurant training costs by 67%)
- Joint purchasing cooperative (reducing costs 12-18% on average)
- Collaborative marketing campaigns (pooled social media budget reaching 340% more potential customers)
The Shared Kitchen Initiative One of MRC's most innovative programs: centralized prep kitchens serving multiple restaurants. Restaurants submit prep lists 48 hours in advance, professional prep cooks handle labor-intensive preparation, and restaurants receive prepped ingredients ready for final cooking.
Results:
- Participating restaurants reduced back-of-house staffing needs by 30%
- Prep cook positions became career-viable with stable hours and benefits
- Food waste reduced 41% through consolidated purchasing and preparation
- Quality and consistency improved
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The 4-Day Work Week Revolution
What began as a desperation move became a movement. By mid-2024, 34% of Montreal restaurants had implemented some form of compressed work week.
Case Study: L'Express The iconic Parisian-style bistro, open since 1980, closed Mondays for the first time in its history. Overall revenue impact was only -2% (minimal considering full day closure), but staff retention improved from 63% annual retention to 94%, and applications received were up 340%.
"We thought we were making a sacrifice. Instead, we discovered that being closed one day made us better the other six days. Our team is rested, engaged, creative. Our food is better. Our service is warmer. The math works."
— François Therrien, General Manager, L'Express, Montreal
Case Study: Joe Beef The world-renowned restaurant took an even more radical approach: reduced overall operating hours but dramatically increased compensation. Revenue per operating hour was up 31%, total revenue down 8% but profit up 23%, and staff applications created a waitlist of over 200 people.
Partnership with Educational Institutions
Partnerships with CEGEPs and culinary schools created sustainable talent pipelines
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The MRC partnered with six CEGEPs and two culinary institutes to create the "Montreal Hospitality Pathway" program, offering paid internships with flexible scheduling around class commitments, mentorship from experienced professionals, and clear advancement pathways.
Results (2024):
- 450 students placed in restaurants
- 73% retention rate after program completion
- Restaurants report higher quality candidates than traditional hiring
- Students graduate with real-world experience and industry connections
Technology as Force Multiplier, Not Replacement
Montreal's restaurant renaissance wasn't about replacing humans with machines—it was about using technology to enable fewer humans to deliver better experiences.
The Smart Automation Framework
Level 1: Communication Automation
- Digital waitlists eliminating host station phone duty
- SMS confirmations and reminders reducing no-shows
- Automated review requests and responses
- Impact: 4-6 hours/day of freed staff time
Level 2: Ordering Optimization
- QR code menus with direct kitchen integration
- Tableside payment tablets
- Real-time menu updates (86'd items removed instantly)
- Impact: Reduced order errors 73%, payment time 65%
Level 3: Analytics and Prediction
- Demand forecasting for optimal staffing
- Inventory management preventing overstock/stockouts
- Price optimization based on demand patterns
- Impact: Labor costs reduced 18%, food waste reduced 34%
"Technology didn't replace our staff—it liberated them. Instead of running around taking orders and processing payments, they can actually connect with guests, tell stories, create memories. That's what hospitality is supposed to be."
— Marie-Claire Bouchard, Owner, Brasserie Centrale, Montreal
Financial Innovation: New Revenue Models
The staffing crisis forced Montreal restaurants to rethink traditional economic models.
Service Charges Replace Tipping
Fifteen Montreal restaurants eliminated tipping in favor of automatic 18-20% service charges. Staff retention improved 34%, back-of-house recruitment improved significantly, and most initial customer resistance faded after first visit.
Dynamic Pricing Strategies
Some Montreal restaurants implemented variable pricing with 20% premium for Friday/Saturday 7-9 PM slots and 15% discount for Tuesday-Thursday 5-6 PM early dining. Demand spread more evenly across the week, with off-peak periods seeing 43% increase in covers and overall revenue increasing 8% with better work-life balance for staff.
Reduced Menu Complexity
Average Montreal restaurant menu size decreased 38% (from 41 items to 25 items) while satisfaction increased.
Benefits:
- Reduced ingredient inventory complexity
- Faster prep times
- Better quality (focus on fewer items done excellently)
- Reduced waste (fewer items going bad)
- Easier training (new staff can learn menu faster)
The new normal in Montreal combines operational efficiency with enhanced guest experience
Photo: Unsplash
The New Normal: Montreal in 2024
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Two years after the crisis peaked, Montreal's restaurant scene is thriving in unexpected ways. Hospitality job postings are down 62%, unfilled positions down 78%, average hospitality wage up 37%, restaurant profitability up 12%, permanent closures down to 6%, and new restaurant openings up 23%.
Restaurant work in Montreal is increasingly seen as a viable career, not just a temporary job:
- Average tenure increased from 18 months to 38 months
- 34% of hospitality workers now have benefits
- Professional development programs enrollment up 240%
- Culinary school applications up 67%
Conclusion: Crisis as Catalyst
Pierre Laroche, whose near-closure sparked his transformation journey, now consults with restaurants across Canada facing similar challenges.
"The shortage made us ask the question: What if we designed this business from scratch, with the goal of creating the best possible experience for both guests and staff—not maximizing hours or menu items or covers, but maximizing quality and sustainability? The answer to that question transformed everything."
— Pierre Laroche, Owner, Le Coq d'Or, Montreal
Montreal's restaurant renaissance offers a roadmap for the industry's future:
- Technology amplifies human hospitality
- Quality trumps quantity
- Staff investment generates compounding returns
- Community collaboration creates competitive advantage
- Sustainable businesses serve everyone better
The labor shortage isn't over—but in Montreal, it's no longer a crisis. It's the catalyst that created a better industry.
[CITATION:{"sources":[{"title":"Montreal Hospitality Labor Market Analysis 2023-2024","author":"Quebec Restaurant Association","publication":"QRA","year":"2024","url":"https://restaurantsquebec.ca"},{"title":"The Impact of Reduced Operating Hours on Restaurant Profitability","author":"Dr. Michel Laroche, Prof. Sophie Gagnon","publication":"HEC Montreal Business Review","year":"2024","url":"https://hec.ca/research"},{"title":"Montreal Restaurant Collective: First Year Impact Report","author":"MRC Research Committee","publication":"Montreal Restaurant Collective","year":"2024","url":"https://mrc-montreal.ca"},{"title":"Four-Day Work Week Implementation in Quebec Hospitality","author":"Institut de tourisme et d'hôtellerie du Québec","publication":"ITHQ","year":"2024","url":"https://ithq.qc.ca"},{"title":"Technology Adoption in Montreal Restaurants: 2019-2024 Analysis","author":"James Chen, Marie Tremblay","publication":"Canadian Restaurant Technology Journal","year":"2024","url":"https://crtjournal.ca"}]}]