2012 Restaurant Turnover Costs
The national average for restaurant turnover is 113% and studies show the cost to replace an employee is anywhere from 30 to 80 percent of the employee’s gross salary. For those restaurant operators where business as usual equals recruiting as usual, your turnover expense could be significantly higher than necessary.
Cost of restaurant turnover broken down
Where do these costs creep in from?
•Job listing services
•Time spent finding, scheduling, interviewing and training employees
•Productivity lost between old employee’s last day and new employees first day
Conservatively, we’ll assume that your turnover expense is only 10% per employee. We’ll further assume that your average employee is paid $8.00/hr and works only 20 hours per week.
$8 x 20 = $160 per week.
$160 per week x 52 weeks in a year = $8,320
Your average turnover cost per employee:
10% of $8,320 = $832
Using this example, if you hire an average of 2 employees per month, your annual turnover expense is $20,000 per location.
If WyckWyre saves you just 10% of that expense, you’re now saving at least $2,000 per location annually and at a cost of less than $480 per location each year. That’s a 315% ROI in one year.