Employee turnover is endemic in the restaurant industry (often > 100% per year). But how much does it cost to lose a skilled cook or server?
Direct costs: Recruitment advertising, time spent in interviews, administrative hiring fees, work permit, medical examination.
Indirect costs (the heaviest): Decrease in productivity during the notice period (or vacant position), time spent training the new employee by other staff (who are therefore less productive), mistakes by a beginner (waste, breakage, dissatisfied customers), slow service.
The cost of replacing an employee is estimated at around €1,500 to €3,000 depending on the position. If you replace 10 employees per year, it’s a dry loss of €15,000 to €30,000.
Investing in retention (better salaries, flexible scheduling, training, positive atmosphere, quality meals) often costs less than dealing with turnover. A loyal employee is also more efficient and better understands regular clients.
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