Labor turnover statistics7/13/2023 ![]() However, an increasing concern is that many employees also have not returned to their role in the restaurant industry, as we have emerged from this difficult time. ![]() These factors may have been out of your control, which can provide you with some solace. If it was happening to your business, you already know that factors such as the financial support that your business and the government was able to provide during this time likely played a role in your employee's decision and ability to stay in the industry. Following the shutdowns and unpredictability during the early days of the pandemic, many employees began seeking careers elsewhere as a survival strategy. ![]() If you have struggled with pandemic related turnover, know that it’s not just your restaurant. Pandemic turnover has been a widespread phenomenon in the restaurant industry. Many of those employees are students who only work during summers off from school, which helps soften the blow of such a huge loss of jobs. During an average summer, restaurant employment increases by about 400,000 employees across the U.S., meaning that 400,000 employees theoretically turned over at the end of the high season. More people eat out in the summer, when they can hit a patio, than in the winter, when the weather drives them to cozy up at home. Then, there’s the inherent seasonality of the restaurant industry. They’re also likely to be students who usually only work seasonally or with limited hours as their academic schedules allow. That means that the majority of individuals entering this industry have little-to-no work experience. Adolescents account for 1.7 million restaurant workers-in fact, restaurants employ about one-third of all working teens. Why is turnover in the restaurant industry so high? A major part of why restaurants will always have higher turnover than other private sector industries is the composition of their workforces. Take a deep breath, because the truth isn’t quite as concerning as the raw data. And ultimately, the fact that 46.5 percent turnover from employees who quit should be even more alarming. To determine your turnover rate, divide the number of employees who have left your restaurant by the average number of employees it takes to fully staff your restaurant, and then multiply the resulting number by 100 to get a percentage.Ĭontemporarily, turnover rate for full-service as well as limited-service restaurants is much higher than these pre-pandemic averages - with turnover reaching 106% and 144%.Ī 66.3 percent overall turnover rate - much less this massive uptick - would be alarming to any restaurant owner. How high is your restaurant's turnover rate?īefore planning out how you can reduce your turnover rate, it’s probably helpful to calculate what it actually is. No restaurant will ever eliminate employee turnover, but with the right steps, you can cut your own rate down. Once you understand the driving forces behind turnover in the industry, you can make changes to prevent and reduce your own staff churn. The key to curbing turnover at your establishment is knowing what causes all the churn in the restaurant industry. So why do so many employees leave their restaurant jobs? Where are they going instead? And more importantly, how can you lower your own turnover rate, retain your employees and save money that you might otherwise have spent on things like renovations or marketing. This is more than 1.5x compared to all private sector workers (where turnover is around 46%). The restaurant industry has an astronomical amount of turnover, with data showing an average churn of around 75% - a percentage that has been rising following the pandemic. If you’ve spent any time in the restaurant industry you know the staff room has a bit of a revolving door.Īmong the many metrics that restaurants should keep an eye on, perhaps one of the most pertinent (and prophetic) is employee turnover.
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