Hospitality Staff vs Automation: ROI and Payback Period Analysis

Should you hire hospitality staff or use automation? This is an important decision point that many businesses face. In this article, you will learn which option is more profitable with ROI and payback period calculations.

Hospitality Staff Cost

Monthly Cost Components

Assumptions:

• Gross Salary: $1,320
• Social Security (23.75%): $313.50
• Unemployment Insurance (2%): $26.40
• Additional Payments: $72
• Benefits: $112

Total Monthly Cost: $1,320 + $313.50 + $26.40 + $72 + $112 = $1,843.90Annual Cost: $1,843.90 × 12 = $22,126.80

Automation Cost (DrinkSelf)

Digital Ordering System Costs

Initial Cost:

• Setup: $0 (Free)

Monthly Cost:

• Standard Package: $10/month

Annual Cost: $10 × 12 = $120

Comparison and ROI Analysis

Monthly Savings

$1,843.90 - $10 = $1,833.90

Annual Savings

$1,833.90 × 12 = $22,006.80

ROI Calculation

ROI Formula: ROI = ((Annual Savings - Initial Cost) / Initial Cost) × 100Initial Cost: $0 (Setup is free)ROI: (($22,006.80 - $0) / $0) × 100 = Infinite (Because initial cost is 0)

Payback Period

Payback Period Formula: Payback Period = Initial Cost / Monthly SavingsPayback Period: $0 / $1,833.90 = 0 months (Starts immediately)

5 and 10 Year Total Savings

5 Year Total Savings

$22,006.80 × 5 = $110,034

10 Year Total Savings

$22,006.80 × 10 = $220,068

Advantages of Automation

1. Cost Savings: You can save up to 95%
2. 24/7 Service: Automation systems work continuously
3. Data Analysis: Detailed consumption and cost analysis
4. Scalability: Can grow independently of staff numbers
5. Consistency: Always the same quality of service

When Should Automation Be Preferred?

Automation is more advantageous in the following situations:

• ✅ When staff costs are high
• ✅ When 24/7 service is required
• ✅ When data analysis and reporting are important
• ✅ When scalability is required
• ✅ When consistent service quality is desired

When Should Hospitality Staff Be Preferred?

Hospitality staff may be more suitable in the following situations:

• ✅ When personal touch and customer relations are critical
• ✅ When very special and customized service is required
• ✅ In low-volume operations
• ✅ When staff costs are low

Use Our Free Comparison Calculator

Using our Hospitality Staff vs Automation Comparison Calculator:

• ✅ You can compare hospitality staff costs with automation costs
• ✅ You can calculate ROI percentage and payback period
• ✅ You can see 5 and 10 year total savings
• ✅ You can download results as PDF or Excel

Conclusion

The hospitality staff vs automation comparison varies according to your business needs and budget. However, in most cases, automation systems, especially those with low or free initial costs, are a more profitable option with high ROI and short payback period.

You can save up to 95% with digital ordering systems like DrinkSelf and increase your operational efficiency. You can do detailed analysis for your own scenario using our free comparison calculator.