It’s 6:30 p.m. on a Friday.

The restaurant is filling up fast. Tickets are stacking up in the kitchen. A hotel lobby hums with guests checking in after a long travel day. Somewhere nearby, a quick-service drive-thru line is already wrapped around the building.

And then it happens.

Someone doesn’t show up.

Not because they don’t care.
Not because they’re disengaged.
But because life got in the way — an unexpected expense, a transportation issue, a bill that couldn’t wait until payday so the employee decided to Uber for the day to make some fast cash.

In hospitality, moments like these matter and they tend to have a ripple effect. One missing person turns into slower service, stressed teammates, frustrated guests and managers jumping behind the counter or onto the floor just to keep things moving.

This is the daily reality of an industry built on shift-based, hourly labor — and it’s why more hospitality operators are increasingly rethinking how and when their teams get paid.

An industry that never stops moving

Hospitality is a major job creator, often cited as the largest or second-largest private employer in the U.S.

The U.S. accommodation and food services sector, which includes hotels, restaurants, bars and related services contributes 3.2% of national GDP and employs roughly 14–16 million people, making it the nation’s second-largest private employer. In 2024, industry revenues reached an estimated $1.6 trillion. 

But scale doesn’t equal stability.

Turnover in hospitality regularly reaches 70–80% a year. Even well-run operations struggle to keep attrition below 50–60% — levels most industries would consider unsustainable. Post-COVID recovery hasn’t erased the challenge either. The World Travel & Tourism Council (WTTC) projects that the global hospitality industry could face a shortfall of about 8.6 million workers by 2035, meaning the sector may be roughly 18% below needed staffing levels if current trends continue.

At the same time, the workforce is changing. Younger workers are less willing to tolerate unpredictable schedules, tip volatility and constant stress — especially when similar pay is available elsewhere.

The result? Operators are stuck in a loop: Hire. Train. Lose. Repeat.

Where the real pressure shows up

Ask a hospitality manager where staffing problems hurt most, and the answer is rarely abstract.

It’s the housekeeper who can’t make it in for an early shift, delaying check-in times.
It’s the server who leaves for a job offering faster access to pay.
It's the line cook who wants overtime — but can’t wait two weeks to see it.

In restaurants especially, income can fluctuate wildly based on tips. A slow night, bad weather or being sent home early can shrink a paycheck overnight — even though costs associated with rent, gas and groceries don't change.

For frontline staff living paycheck to paycheck, timing matters as much, or even more, as total wages.

And when that timing doesn’t work, your operation can feel it immediately.

A small change that makes a big difference

This is where earned wage access can come in to save the day.

Earned wage access (EWA) lets employees access a portion of the pay they’ve already earned  — before payday. It’s not a loan. It doesn’t change payroll cycles. It simply gives workers flexibility when life and bills don't line up neatly with your organization’s traditional payroll schedule.

Rain was built specifically for industries like hospitality with high turnover, variable shifts, tip-heavy roles and tight margins.

And the impact shows up where it matters most.

When workers can access their earned pay when needed:

• They’re more likely to show up for their shift.
• They’re more willing to pick up extra hours during peak demand.
• They’re less likely to leave for marginal pay increases elsewhere.
• They’re less distracted by short-term financial stress.

For operators, that translates into fewer no-shows, better shift coverage and more consistent service.

Why this works for hospitality operators

Hospitality leaders are understandably cautious about adding anything that complicates payroll — especially in environments with unions, franchises and strict compliance requirements.

That’s why Rain is designed to fit seamlessly into existing operations with:

• No disruption to payroll cycles
• Employer-configurable guardrails to manage employee access responsibly
• Support for tip-based workers through average base-pay calculations
• Fast deployment across multiple locations or franchises
• Geofencing options to ensure hours are captured correctly at the right property

For franchisees managing dozens of locations, this matters. They need solutions that improve store-level earnings before interest, taxes, depreciation and amortization (EBITDA), not ones that add overhead.

The ripple effect on guest experience

Hospitality is one of the few industries where staffing issues are immediately visible to and felt by guests.

When teams are short:

• Wait times increase
• Service slips
• Mistakes happen
• Reviews suffer

But when shifts are fully staffed and employees feel supported, the difference is palpable. Service is smoother. Teams collaborate better. Guests notice.

EWA doesn’t replace good management, fair scheduling or competitive pay, but it does reinforce all of them by removing one of the biggest sources of friction in hourly work, financial instability between paydays.

A different way to think about pay

At its core, earned wage access is about alignment.

• Aligning the timing of pay with the realities of shift work
• Aligning financial stability with operational stability
• Aligning employee needs with business outcomes

For hospitality operators, that alignment can be the difference between constantly putting out fires and finally building a team that shows up, stays longer and delivers better service.

Because in an industry where empty tables and short-staffed shifts don’t serve guests, keeping people on the floor isn’t just an HR goal — it’s the entire business.

And sometimes, the fastest and easiest way to stabilize a hospitality workforce is simply to give people access to the money they’ve already earned.

If you want to discover how Rain can keep your customers, your employees and your business happy and thriving, speak with one of our experts today.