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How Much Is Employee Turnover Costing You?

Calculate the true cost of each employee departure — from hiring to lost productivity.

1 Team Data

2 Replacement Parameters

The True Cost of Employee Turnover in Restaurants

The restaurant industry has a staggering 75-80% annual turnover rate — the highest of any industry. Each departure costs your business 30-50% of the employee's annual salary when you factor in all hidden costs.

What Makes Up Turnover Costs

Cost Category Typical Range Description
Recruiting & advertising$200–$500Job boards, social media ads, referral bonuses
Manager time$300–$600Resume screening, interviews, onboarding paperwork
Training$500–$2,000Shadowing shifts, mentorship, uniform & supplies
Lost productivity$1,000–$3,000New hires operate at 50-75% for weeks
Vacancy cost$500–$2,000Overtime for remaining staff, lost revenue

Top Reasons Hospitality Workers Quit

  1. Unpredictable schedules — employees can't plan their lives when they get next week's schedule the day before
  2. Unfair shift distribution — some always get the lucrative shifts, others are stuck with dead hours
  3. Burnout from overtime — understaffing forces remaining employees to cover extra hours
  4. No flexibility — inability to swap shifts or request time off easily
  5. Poor communication — last-minute schedule changes with no notice

Fair Scheduling = Lower Turnover

Shifty distributes shifts fairly, lets employees swap easily, and publishes schedules in advance — everything your team needs to stay.

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How to Calculate Your Turnover Rate

Turnover Rate (%) = (Departures per Year ÷ Average Total Employees) × 100

For example, with 20 employees and 12 departures per year: (12 ÷ 20) × 100 = 60% turnover.

The goal for restaurants is to get below 50%. Top-performing establishments achieve 30-40%.

Frequently Asked Questions

How much does it cost to replace one restaurant employee?
On average, replacing a line-level employee costs $3,000–$5,000, or about 30-50% of their annual salary. For managers, the cost can reach $8,000–$15,000.
What is a normal turnover rate for restaurants?
The industry average is 75-80%. A good target is below 50%. Top restaurants with strong culture and fair scheduling maintain rates of 30-40%.
How can I reduce employee turnover in my restaurant?
Three key factors: 1) Predictable, fair scheduling — publish at least one week in advance, 2) Flexibility — let employees swap shifts through an app like Shifty, 3) Fair compensation — including equal access to high-tip shifts.

Retain Your Team with Better Scheduling

4 out of 5 workers say they'd stay longer with fair, predictable schedules. Shifty makes that automatic.

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