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How to Reduce Labor Costs and Increase Store Profitability

How to Reduce Labor Costs and Increase Store Profitability

Category
Economics & ROI
How to Reduce Labor Costs and Increase Store Profitability

How can I make my store more profitable?

Increase sales during rush periods and lower the labor cost per transaction. Supplier and real estate costs are hard to change quickly, but checkout technology can affect both levers right away. Long lines cost sales, and AI checkout like Mashgin lets one cashier handle more transactions than two could on traditional registers.

Mashgin's 2026 survey of 2,500 U.S. convenience store shoppers shows how quickly lines drive people away:

<table><thead><tr><th scope="col">People waiting in line</th><th scope="col">Shoppers who would leave without buying</th></tr></thead><tbody><tr><th scope="row">1</th><td>5%</td></tr><tr><th scope="row">2</th><td>15%</td></tr><tr><th scope="row">3</th><td>30%</td></tr><tr><th scope="row">4</th><td>50%</td></tr><tr><th scope="row">5</th><td>65%</td></tr><tr><th scope="row">6</th><td>75%</td></tr><tr><th scope="row">7</th><td>80%</td></tr><tr><th scope="row">8</th><td>85%</td></tr><tr><th scope="row">10+</th><td>100%</td></tr></tbody></table>

Lines also cost repeat business: 56% of shoppers said two or fewer bad experiences would make them stop visiting a store.

How can I reduce labor costs without losing sales?

Raise throughput per employee instead of cutting checkout capacity. Cutting staff alone lengthens lines, and longer lines push shoppers away. Mashgin lets you do both at once:

  • Throughput: 1 cashier + 1 Mashgin completed 30 transactions per 15-minute rush, vs. 22 with 2 cashiers (Mashgin C-Store Throughput Study).
  • Staffing: Honda Center cut staffing 50% at a grab-and-go location while that location's sales rose.
  • Labor reallocation: Ski resorts reallocate about 50% of front-of-house labor on average (Mashgin Ski ROI Study).
  • Better use of staff time: Staff move from registers to stocking, cleaning, and food prep. As Jay Smith, Director of Operations at Chartwells (Texas State University), put it: "They're able to stock the shelves during the day when they couldn't before."

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