The Cost of Turnover: How to Reduce Staff Attrition and Boost Profitability

Running a restaurant is no small feat—and neither is keeping it fully staffed. In an industry known for high turnover, restaurants often face the hidden (and not-so-hidden) costs of constantly replacing team members. From onboarding and training to lost productivity and guest experience dips, employee attrition adds up fast—and it can eat into your bottom line more than you think.

Here’s why staff turnover is so expensive—and what your restaurant can do to reduce it.

Understanding the True Cost of Turnover

Replacing a single hourly restaurant employee can cost up to $5,864, according to the National Restaurant Association. For salaried managers, it’s even higher. These costs include:

• Recruiting and Onboarding: Job ads, interviews, background checks, and training time all come with a price tag.

• Lost Productivity: It takes time for new hires to reach peak efficiency, which impacts team performance and service.

• Inconsistent Guest Experience: Frequent staff changes can lead to mistakes, slower service, and less personal engagement.

• Lower Morale: High turnover can affect your remaining team, increasing burnout and leading to even more departures.

In short, every time a great employee walks out the door, your restaurant loses more than just labor—it loses momentum.

Why Employees Leave (And What You Can Do About It)

Understanding why team members leave is the first step to keeping them. Here are some of the most common reasons for turnover in restaurants—and how to turn them around:

Lack of Career Growth

Many employees see restaurant work as a stopgap, not a career. Combat that perception by offering:

• Clear paths to promotion

• Cross-training opportunities

• Ongoing feedback and coaching

Unpredictable Schedules

Inconsistent hours and last-minute changes lead to frustration and burnout. Consider:

• Using scheduling tools that give staff more notice and control—7shifts is a popular option designed specifically for restaurants. It simplifies scheduling, improves team communication, and lets staff submit availability or request time off from their phones.
  Learn more at 7shifts.com →

Low Pay and Few Benefits

While raising wages might not always be feasible, you can get creative:

• Offer retention bonuses or shift incentives

• Provide free meals or transportation support

• Explore non-monetary perks like recognition programs

Toxic or Disorganized Work Culture

A chaotic or negative environment pushes people away quickly. Focus on:

• Strong management training

• Clear communication

• A culture of respect and appreciation

Tips to Keep Your Team—and Your Profits—Intact

Here are a few actionable steps restaurant operators can take to retain talent and protect profitability:

• Track Turnover Metrics: Just like you would food cost or labor %. Knowing where and when you're losing staff is key.

• Invest in Your Managers: A well-trained, emotionally intelligent manager can make all the difference in morale and retention. Tools like Trainual can help standardize onboarding, clarify expectations, and make sure managers are equipped to lead effectively.
  Explore more at trainual.com →

• Recognize and Reward Consistency: Shout out the staff members who show up, work hard, and help the team thrive.

• Listen to Exit Interviews: But also check in before people leave. Regular pulse surveys can catch issues early.

Reducing turnover won’t happen overnight, but each step you take to build a better work environment will pay off in higher retention, improved service, and more stable profits.

Final Thoughts

Employee turnover might be part of the restaurant world—but it doesn’t have to be the norm. With a proactive approach to staff retention, your business can lower costs, reduce stress, and build a team that sticks around for the long haul.

Want help building a budget or forecast that accounts for turnover costs—or sets your restaurant up for more stability and profitability? Let’s talk! ACE’d Accounting Solutions helps restaurants like yours gain clarity around labor metrics and improve the financial health of your operation.