{"id":2808,"date":"2024-02-05T00:38:01","date_gmt":"2024-02-05T05:38:01","guid":{"rendered":"https:\/\/www.dailypay.com\/2018\/09\/13\/qsr-and-restaurant-turnover-rates\/"},"modified":"2024-02-05T00:38:03","modified_gmt":"2024-02-05T05:38:03","slug":"qsr-and-restaurant-turnover-rates","status":"publish","type":"post","link":"https:\/\/www.dailypay.com\/resource-center\/blog\/qsr-and-restaurant-turnover-rates\/","title":{"rendered":"Turnover And Retention Rates for QSR Businesses"},"content":{"rendered":"\t\t
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In our previous article, we discussed <\/span>employee retention rates by industry<\/span><\/a> and looked at which <\/span>industries<\/span><\/a> have the best and worst employee retention rates. In this article, we\u2019ll take a look at the turnover rate across the <\/span>restaurant industry<\/span><\/a>.\u00a0<\/span><\/p>

A Look at Turnover in the Restaurant Industry<\/span><\/h2>

As of November 2023, the overall turnover rate across the restaurant industry (categorized as accommodation and food services according to the Bureau of Labor Statistics) was 6.1% compared to 4.9% across all industries.1<\/sup><\/span> This turnover rate was among the highest across industries measured during this timespan.\u00a0<\/span><\/p>

Why Are Restaurants Struggling With High Turnover?<\/span><\/h3>

Staffing in the restaurant industry was 3.6% below pre-pandemic levels at the start of 2023, according to the National Restaurant Association.2<\/sup><\/span>\u00a0<\/span><\/p>

Additionally, 62% of operators say they can\u2019t staff up to meet demand, and 80% say they have a hard time filling open positions.3<\/sup><\/span><\/p>

Restaurants often experience higher turnover rates compared to other businesses with hourly wages and tip distribution due to the demanding nature of the industry. The fast-paced environment, irregular working hours and intense customer interactions can contribute to burnout. Servers may also face variability in income depending on factors like customer traffic and tipping patterns.\u00a0<\/span><\/p>

Additionally, the reliance on tips introduces financial instability. Limited career growth opportunities within the restaurant sector can further drive turnover, as employees seek stability and advancement. The transient nature of restaurant employment, combined with the physical demands, creates an environment where staff turnover is more prevalent than in businesses with stable hourly wages.\u00a0<\/span><\/p>

The Cost of High Turnover<\/span><\/h2>

The cost of turnover can vary depending on your organization, but the estimated cost for losing an employee is one-half to two times the employee\u2019s salary. The average cost for hourly workers is $1,500 per employee.4<\/sup><\/span><\/p>

When looking specifically at the restaurant industry, the cost may be even higher with an estimate at $5,864 per person.5<\/sup><\/span><\/p>

The granular breakdown looks something like this:<\/span><\/p>