How to Reduce Labor Costs and Increase Store Profitability

Cutting staff lengthens lines and drives shoppers away. See how many leave at each line length, and how to raise throughput per employee instead.

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:

People waiting in line Shoppers who would leave without buying
1 5%
2 15%
3 30%
4 50%
5 65%
6 75%
7 80%
8 85%
10+ 100%

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

How does Mashgin impact a store's profitability?#

Mashgin improves a store's profitability in three ways:

  • More sales. Faster checkout clears rush-period lines before shoppers walk out. Most locations see a 20% to 50% increase in transaction volume, and locations where long lines were turning customers away have seen sales more than double.
  • Lower labor cost per transaction. One employee can handle the checkout volume of three or more cashiers. In Mashgin's C-Store Throughput Study, one cashier with one Mashgin completed 30 transactions per 15-minute rush, vs. 22 for two cashiers on traditional registers.
  • Promotions and upsells. Mashgin applies the store's existing promotions automatically, including multi-buy deals, and shows offers on the customer-facing screen, putting them in front of every shopper at checkout.

Labor efficiency matters most in convenience retail, where the average inside transaction no longer makes money. Based on NACS State of the Industry data, the average convenience store basket is $7.69, and after the cost of goods, labor and overhead, it loses about $0.07. Mashgin cuts the labor cost of each transaction by about 67%, which turns that loss into a profit of about $1.00:

Per inside transaction Traditional checkout With Mashgin
Average basket $7.69 $7.69
Cost of goods sold $4.53 $4.53
Labor cost $1.60 $0.53 (down 67%)
Overhead $1.63 $1.63
Net profit −$0.07 $1.00

That's before counting the extra transactions Mashgin captures during rush periods or the effect of promotions on basket size.

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."