Restaurant Employee Turnover Rate: 2025 Statistics, Costs, and Retention Strategies

Keeping great staff isn’t always easy for restaurants. You can do your best to train and coach your staff, but just when things start to click, someone on the team leaves.

If you’re feeling stuck in a constant hiring loop, you’re not alone—in 2025, the average restaurant employee turnover rate topped 75%. While we can’t expect food service to have the same retention rates as more traditional industries like finance, there are real ways to bring that number down and boost team morale.

In this post, we’ll break down the cause and costs of high industry turnover rates and explore practical restaurant management tips that keep your best people around longer.

TL;DR: Understanding restaurant employee turnover rates

Looking for a quick rundown of the impact and numbers behind restaurant turnover rates? Here’s the need-to-know info.

Key statistics about the average employee turnover rate in the restaurant industry:

• The average restaurant employee turnover rate is 75%
• In the fast food industry, average annual turnover can exceed 130%
• Front-of-house staff turnover averages at 41%
• Back-of-house kitchen staff turnover averages at 43%
• Restaurant manager turnover rates are 28%
• Employees looking to stay in the industry for 2+ years are most often looking to leave their current job
• Replacing a single hourly employee can cost more than $2,300

What is the 30/30/30/10 rule for restaurants?

The 30/30/30/10 rule for restaurants is a budgeting framework that suggests allocating your revenue into:

• 30% for food costs
• 30% for labor costs
• 30% for overhead expenses
• 10% for profit

Why is turnover so high in the restaurant industry?

• Low wages and inconsistent income
• Employee burnout and poor work-life balance
• Limited opportunities for career growth
• Bad managers and poor workplace culture

How to calculate your restaurant's employee turnover rate

• Choose your time period (monthly, quarterly, or annual)
• Count employees at the start of the period
• Count employees at the end of the period
• Calculate average: (Start + End) ÷ 2
• Count total separations during the period
• Formula: (Separations ÷ Average Employees) × 100

Strategies to reduce your average annual turnover:

• Improve employee scheduling processes
• Recognize and appreciate employees
• Audit your pay against others in the industry
• Create team communication channels
• Improve onboarding and first-week experience
• Tighten up your hiring process
• Build long-term career paths for your staff
• Invest in training and professional development
• Develop a positive workplace culture
• Use technology to your advantage

What is the average restaurant turnover rate in 2025?

Wondering how your restaurant measures up against the average industry turnover rates? Here’s a look at the numbers.

National restaurant turnover statistics

The average restaurant employee turnover rate is around 75%, but it can go over 130% for quick-service restaurants.

If you break down turnover based on role, rates look like

• 41% for front-of-house staff, including servers, hosts, and bartenders
• 43% for back-of-house staff like line cooks, prep cooks, and dishwashers
• 28% for managers, who typically receive higher wages and more consistent schedules

How restaurant turnover compares to other industries

What is a good turnover rate for restaurants?

A good turnover rate for restaurants would realistically come out around 50-60% annually. Given that the rate average is pushing 75%, consider anything above 80% to be red flag territory.

Keep in mind that context matters here. If you’re running a quick-service restaurant, you will have more turnover than fine dining. A big part of this comes down to pay and scheduling—if your budget can only handle part-time minimum wage staff, it’s going to be harder to keep employees long-term.

Be realistic but don’t be disheartened! There are ways to manage the typical turnover rate without feeling like you’re caught on a hiring hamster wheel.

What is the 30/30/30/10 rule for restaurants?

The 30/30/30/10 rule for restaurants is a budgeting framework that helps business owners allocate their revenue. Basically, it’s a rough guide to where you should be putting your money.

This rule suggests breaking up your expenses into four percentages:

• 30% for food costs: Keeping an eye on the cost of your ingredients is key to making sure you don’t overspend or underprice.
• 30% for labor costs: This includes employee wages, benefits, taxes, and insurance. Employee scheduling and timesheet apps (like Homebase) are great tools for staying under that 30% mark.
• 30% for overhead costs: This includes operating costs like rent, insurance, utilities, equipment maintenance, and restaurant management software. Budget for your regular expenses, but keep some extra in the bank for when the fridge dies.
• 10% for profit: Ideally, your typical profit margin should shake out around here. While 10% is pretty good for the restaurant business, you can try to increase it by raising prices or shifting the costs associated with the other 90% of your budget.

Keep in mind that the 30/30/30/10 rule isn’t meant to be rigid. It’s a starting point for strategizing, and you should adjust your budget to your restaurant’s needs. If you’re running a “serve one thing and serve it well” style business, your food costs might be lower—which is an opportunity to reallocate those funds.

The true cost of restaurant employee turnover

Turnover is expensive and a headache. Here are some of the ways that shows up in terms of time, money, and momentum.

Direct replacement costs

Overall, the average total cost of turnover is $5,864 per employee, with an estimated $821 going to training alone. 

Here are how the “hard costs” of separation, hiring, and training shake out by role:

• $2,305 for hourly staff, and for hourly front-of-house roles, it can climb as high as $6,000 per person
• $10,518 for restaurant managers
• $16,770 for general managers

The kicker? Mid-timers and long-time employees (your most valuable team members) who are looking to stay in the industry for 2+ years are most often looking to leave their jobs.

Showing appreciation for your team—with anything from praise to raises—is the key to restaurant employee retention and the costs you save with it.

Hidden costs that really add up

Some expenses don’t show up on a balance sheet right away but still chip away at profits:

• Lost customers: New or inexperienced staff can lead to inconsistent service that drives regulars away.
• Increased food waste: Mistakes in the kitchen often mean higher product costs and lower margins.
• Manager burnout: More turnover means managers spend extra hours covering shifts or putting out fires, which grates on their ability to keep up a positive work environment.
• Reputation damage: Word spreads quickly when work culture gets sour, making hiring—and recovery—harder. 

Why is turnover so high in the restaurant industry?

Restaurant work attracts some of the hardest-working, most adaptable people out there, but it also tests them in ways few other industries do.

Here are some reasons the normal turnover rate in the food service world tends to be high:

Low wages and inconsistent income

Nearly 47% of restaurant employees say low hourly wages are the main reason they plan to leave the industry. Between low base pay and inconsistent income, it’s hard to get set up for long-term stability.

Many restaurant roles depend heavily on tips, but those fluctuate daily. Hours can be just as unstable—staff are often expected to stay “fully available,” yet their shifts may vary wildly week to week. This makes it hard to keep up with a second job, not to mention plan bills or childcare.

Burnout and poor work-life balance

Long hours, late nights, and relentless multitasking wear on anyone after a while. Add the emotional load of handling difficult customers (or managers), and exhaustion builds fast if there’s no time for self-care.

Restaurant jobs are also physically demanding: carrying trays, standing for hours, and working in hot kitchens takes a toll. When rest days feel like recovery missions instead of restful time off, people start to question whether it’s worth it.

Limited career growth opportunities

37% of workers say that a lack of upward mobility is the reason they want to leave their restaurant job. While the food industry has lots of great entry-level roles, most of them don’t clearly show what next steps look like—and if employees can’t see a future, they start searching for one elsewhere.

Building career paths, offering training, and giving regular feedback show your team that if they’re committed to your restaurant, you’re committed to them.

Poor management and workplace culture

44% of restaurant employees say a lack of recognition for their work is what drives them to quit. A toxic or dismissive environment spells doom for morale, and it can be hard to start fresh when old team conflicts haven’t been addressed.

Here are a few ways that managers can improve work culture:

• Schedule fairly
• Recognize and reward staff for their work
• Be willing to take employee feedback
• Lead with empathy

How to calculate your restaurant's employee turnover rate

You can’t improve your typical turnover rate if you’re not sure what it even is.

Here’s a step-by-step system for figuring out where you stand:

• Choose your time period (monthly, quarterly, or annual) and measure consistently
• Count employees at the start of the period, including both part and full time staff
• Count employees at the end of the period
• Calculate your average: (Employees at the Start + Employees at the End) ÷ 2
• Count total separations during the period for any reason, including quitting, being terminated, or retiring
• Final formula: (Separations ÷ Average Employees) × 100 = Turnover Rate

For example, imagine at the start of the year, you have 25 employees, and by the end you have 21. Over the course of the year, 7 people separated from the business.

The formula would look like: (25+21) / 2 = 23 ; (7/23) x 100 = ~30% turnover rate.

It’s good to match a number to your employee turnover rate, but it’s even better when you measure it against trends like:

• The reason for separation
• Patterns with front-of-house, back-of-house, or management leaving
• How many employees were part-time vs full-time
• How long the average employee stayed with the business
• The impact on your ops and costs (including how they changed with new hires!)
• Any consistent feedback on why they left

This information shows the story hidden in the numbers, and can help you make smart restaurant hiring decisions moving forward.

Proven strategies to reduce restaurant turnover rates

The employee turnover rate in restaurant industry settings leans high, but there are steps you can take to create an environment that retains great team members. Best of all, you don’t need a massive overhaul to make a difference.

Here’s a guide to short- and long-term changes that reduce your employee turnover rate:

Immediate actions for improving restaurant employee turnover

If turnover has you short-staffed right now, these quick fixes can cool the temperature and start working on trust with your team:

• Fix scheduling issues. Inconsistent or last-minute scheduling is one of the top reasons restaurant employees quit. Restaurant scheduling software helps simplify swaps, give staff more notice, and keep things fair. Plus, it automates the finicky work on your end.
• Start recognizing good work. A simple “thanks” or a public shout-out in pre-shift meetings goes a long way. Show your team the appreciation they deserve.
• Improve the first-week experience. Onboarding should feel welcoming rather than overwhelming. Pair new hires with a friendly mentor, and schedule regular check-ins to see how they’re settling in.

30-day improvements

Once you’ve stabilized day-to-day operations, get working on the systems that strengthen retention over the next month:

• Audit your compensation. Review wages, benefits, and tip distribution to make sure your pay is competitive for your market and role types.
• Create employee communication channels. Regular check-ins, feedback forms, or a shared messaging app help employees feel heard and connected.
• Improve onboarding. Go beyond paperwork by dedicating time to coaching staff on your values and customer approach from day one. Extra room for questions can help clear up any misunderstandings from the start.
• Fix the interview process. Be 100% honest about expectations and culture. Hiring the right fit up front saves time and frustration later.

Long-term cultural changes (60–90+ days)

Lasting retention comes from culture, and you can lower your typical turnover rate when you:

• Build clear career paths. Show employees what advancement looks like, even if it’s small steps like shift lead or trainer roles.
• Invest in training and development. Skill-building boosts confidence and loyalty, and cross-training staff lets them learn and earn more.
• Create a positive workplace culture. Encourage teamwork, actively celebrate wins, and make feedback a two-way conversation, even if it’s uncomfortable.
• Leverage technology strategically. Scheduling, payroll, and performance tools help reduce admin stress and keep your whole team aligned.

Frequently asked questions about restaurant employee turnover

What profession has the highest turnover rate?

It’s not just the restaurant industry that has a hefty average annual turnover rate. These are the five industries with the highest employee turnover rates:

• Leisure and hospitality (includes restaurants): 79%
• Retail: 60%
• Professional and business services: 57%
• Construction: 54%
• Transportation and warehousing: 49%

On the other side of things, the lowest industry turnover rates go to jobs in government (18%), education (39%), finance (29%). In general, higher turnover is associated with jobs that have lower pay, less consistent hours, and greater physical demand.

What is considered a good turnover rate for a restaurant?

50-60% is considered a good turnover rate for a restaurant. The average restaurant turnover rate is around 75%, so keeping below that number is a good benchmark to aim for.

Keep in mind that fast turnover is common in the food service industry. As long as you have the processes in place to manage changes in staffing, it’s okay to have employees who aren’t in it for the long haul.

Why do restaurants have such high turnover?

Restaurants often have high turnover because wages skew low, hours are unpredictable, and the work is physically and emotionally demanding. Limited career growth and inconsistent management also lead to employees looking for other work.

In an industry known for fast-paced and high-pressure environments, competitive pay and a solid work culture make all the difference in restaurant employee retention.

Lowering your average annual turnover

Reducing your normal turnover rate won’t happen overnight, but it’s absolutely doable. Start with simple things like consistent schedules and positive reinforcement. Small wins add up to lasting change, and before long, you’ll have a stronger, more loyal team.

Looking for tools to tighten up your processes? At Homebase, our all-in-one app gives you everything you need to support current team members and bring on new ones with ease. We’re talking schedules, timesheets, payroll, hiring and onboarding tools, and more.

Make your workdays work for your whole team. Get started with us today for free!

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