Flexible Scheduling and AI: The New Levers for UK Retail and Restaurant Success

With 2025 bringing steep increases to both the National Living Wage and National Insurance Contributions, UK retailers and restaurants are facing a combined £5 billion rise in labour costs. In an already challenging economic climate, the pressure is on to find smarter, more sustainable ways to manage labour without compromising service quality or employee satisfaction.

But while many businesses recognise the need to adapt, the majority are missing a major opportunity: 81% of retail and hospitality employers have yet to adopt AI-driven workforce tools, despite growing awareness of their potential to reduce costs, boost productivity, and improve employee engagement.

That’s according to Legion Technologies’ newly released 2025 State of the UK Hourly Workforce report, which surveyed over 1,000 managers and hourly workers across the retail and hospitality sectors.

The Rising Cost of Labour Demands a Smarter Strategy

In the past, facing rising costs often meant two things: raising prices or cutting staff. But today, those tactics come with greater risks. Customers are increasingly price-sensitive, and reducing headcount can directly impact service quality, sales, and brand reputation.

Fortunately, there’s a third — and more effective — lever: AI-powered workforce management. These solutions enable businesses to maximise the value of their existing workforce by automating time-intensive admin tasks, optimising shift coverage, and giving employees greater schedule flexibility and control. 

Yet despite 65% of managers acknowledging the need for automation, only 19% are currently using AI tools for scheduling. That gap represents a significant untapped opportunity for businesses to improve efficiency and retention without increasing costs.

Manual Scheduling Is Costing More Than You Think

Legion’s research reveals a stark picture of how much time is lost to outdated workforce processes:

• 65% of managers spend more than three hours a week on scheduling.
• 52% spend another three hours managing time and attendance.
• 62% would prefer to spend that time coaching staff or supporting customers.

These repetitive administrative tasks drain productivity and distract from high-impact activities that drive customer satisfaction and team development.

AI-driven platforms like Legion automate scheduling, compliance management, and time tracking. According to Forrester’s Total Economic Impact™ report, intelligent automation can save up to five hours per week per manager — freeing up time to lead teams, engage customers, and respond to on-the-ground challenges.

Flexibility Is the New Currency of Employee Engagement

As the fight for frontline talent intensifies, schedule flexibility has become one of the most powerful tools for attracting and retaining employees:

• 72% of hourly staff say schedule flexibility is their top job consideration.
• 51% cite rigid schedules as a key reason for leaving roles.

Retail and restaurant workers want more say in when, where, and how much they work — and modern WFM solutions make that possible. Features like self-service shift swaps, open shift claiming, and real-time preference updates give staff the autonomy they crave, while AI ensures that business needs are still met.

This balance between operational efficiency and employee empowerment leads to better coverage, happier teams, and lower turnover — all of which positively impact the bottom line.

A Smarter, More Sustainable Path Forward

Relying on price hikes or staff cuts is a short-term play. Retailers and hospitality operators need new levers — ones that boost productivity and retention without compromising service. That’s where AI and flexible scheduling come in.

By embracing intelligent workforce management, businesses can move beyond reactive cost-cutting and build a more resilient labour model — one that improves both the employee experience and business performance.

📥 Download the full report: 2025 State of the UK Hourly Workforce Report