How to Reduce The Cost of Employee Turnover at Your Restaurant

Apr 2, 2017 | Restaurant POS, Uncategorized, Weekly Articles

It’s official, restaurant industry turnover rose to 72.1% in 2015.

While the turnover rate running high in the hospitality industry is not surprising, it has increased drastically over the last few years, at least 10% since 2013.

Turnover is also expensive on your profits, according to Investopedia, it costs $3,500 for the entire process. “Training turns out to be one of the costliest investments a company can make ” (

While it’s impossible to be free from employees leaving altogether, you can take preventative steps to help you keep your investment in your people.

Get it right the first time.

Sometimes the best way to avoid losing staff is to take extra time in the beginning and hire the best fit for your business. If you create some standards you need this employee to meet, you’ll find they are a better fit for your business and stick around for the long haul.

Increase their pay.

This one can be tricky, but it’s the largest reason staff will leave a business. Retain your talented team by continuing to offer them competitive wages and ladder opportunities.

Even by giving small raises over time and keeping track of their performances can do wonders.

Give flexible hours.

Some crazy, unpopular hours go along with keeping a restaurant. But understand that your team does not want to work every single undesirable time.

Give your staff some breathing room, and let them have some flexibility with their schedules.

The flexibility can be worth a lot more in the long run. If you’re accommodating to their schedule, they are more likely to stick around as happier and harder working employees.

Day off pass.

You would be amazed what good a day off can do for your staff. Every quarter or so, give each employee a free vacation day to pick. This “day off pass” acts as a sort of freebie where they aren’t calling in “sick” or take the day off without you planning for it, all the better if they’re paid!

Give benefits to your Part-Timers.

Not all employees are full-time workers but treat them like they are. Acknowledge their contributions. If they’re temps, write notes to their representative about their great work.

Give out free drinks!

You can have a certain number of free meals or drinks that employees get every month. Track it and count it as your business. Your staff is often hungry and sometimes tempted by the food. Give them allotted free meals, and give them control of when they can use them.

Conduct exit interviews.

Even if employees eventually leave. Doing these interviews can help you find what future changes you need to keep other employees around.

Remember, your staff is an investment.

Don’t let the relationship with your staff fall apart. All the tips above can help with the dreaded turnover rate, and build a stronger team.

If you want to learn more helpful tips about managing your restaurant, download our free e-book, and learn about money saving solutions your business.

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