Let's 86 The 75% Annual Restaurant Staff Turnover Rate

By: Amanda McNamara

3 Minute Read

Jun 21, 2018

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In 2018, the annual employee turnover rate for restaurant staff was a whopping 75%, according to The United States Bureau of Labor Statistics.

To put this in perspective, say you started 2018 with 100 employees. If your restaurant has a 75% annual employee turnover rate, 75 of the original 100 employees who began the year working at your business will be gone by years end and hopefully replaced with someone new.

According to a recent study from Cornell’s School of Hotel Administration, The cost of losing and replacing one hourly employee can be as high as $5,864. If your restaurant is maintaining a 75% annual employee turnover rate, you’re potentially losing $428,072 or more annually as a result.

Employee turnover is not only an operational nightmare, it’s a hefty financial burden your restaurant can’t afford to shoulder.

You’re not Atlas, after all.

As a restaurant owner, manager, or leader, cutting costs is undoubtedly an ongoing project for you. Consider cutting your restaurant’s annual employee turnover rate your #1 cost saving priority in 2018.

Related Resource: Finding, Hiring, and Managing Restaurant Staff

But, Where to Begin?

Employee retention isn’t as easy as negotiating with distributors, tracking inventory closely, staffing down on slow shifts or picking the right restaurant technology. Luckily, Toast and 7shifts have done the heavy lifting for you.

It’s time, friends, for an industry overhaul. Together we, the restaurant community, can make working in a restaurant an enticing, gainful employment opportunity for prospective and existing employees alike.

Together, we can 86 the pesky 73% annual employee turnover rate plaguing the restaurant industry.

Toast and 7shifts have been hard at work analyzing the reasons why restaurant employees quit at such an alarming rate and coming up with effective, informed solutions that enable restaurant management to empower and retain their staff members.

Here’s a glimpse at what’s waiting for you inside The Employee Retention Playbook :

  • Your New Restaurant Employee Onboarding Guide - this section answers questions like what is onboarding, why is a Week-One Checklist important, what is a 30 | 60 | 90 day checklist, and more. Here you will also find helpful information and tips for creating your restaurant’s onboarding program.
  • The Week One Checklist - A new employee’s first week with your business is arguably the most important time during their employment lifecycle. The customizable Week One Checklist gives structure to your new employees’ first weeks, and allows management to track their progress as they move through the list.
  • 30 | 60 | 90 Day Onboarding Checklist - Many businesses adopt a 90-day trial period for new employees so the restaurant and the employee have ample time to decide if their employment is a right fit. Our customizable 30 | 60 | 90 Day Onboarding Checklist will help guide your new employees’ first 30, 60, and 90 days with your restaurant, including tasks to accomplish, check-in meetings, and more!
  • The One-on-One Meeting Guide & Template - One-on-one meetings are essential to establishing and nurturing strong relationships between management and staff. This guide will answer the question what is a one-on-one meeting, and provide helpful information and tips to consider when conducting your own one on one meetings with your restaurant staff.
  • Employee Engagement Tips - Learn the most effective employee engagement tips and tricks you need in your employee retention toolkit from the employee management experts at 7Shifts.
  • Your Guide To Creating An Annual Restaurant Employee Review Program & Evaluation Templates- In this section, you’ll learn about what an annual employee review program is, why it’s so important, and tips for how to conduct your own annual employee review program. We’ve also included the following customizable templates:
    • Employee Annual Review: Manager’s Evaluation Form
    • Employee Annual Review: Peer Evaluation Form
    • Employee Annual Review: Self-Evaluation Form

Click below to download The Employee Retention Playbook and 86 your staff retention program once and for all 

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