Discover 10 proven strategies to cut restaurant turnover by 62%, reduce hiring costs, and boost retention—starting from the very first step.
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April 7, 2025
Did you know that the average cost of turnover for a restaurant frontline employee is $5,864?
And that the average cost of turnover for a manager is $13,867?
Let those numbers sink in.
Given that the projected turnover rate in the restaurant industry is a staggering 74% in 2025 – that’s 3 in 4 workers needing to be replaced – retention should be a top priority for every restaurant business.
(PS - Want to learn more about exactly how much turnover is costing you? Make sure you scroll to the end for our exclusive ebook, The Hidden Costs of High Turnover)
What we’ve seen from our work with 500+ industry leading orgs is that the best time to tackle turnover is from the beginning of the hiring process.
After all, first impressions make a big impact on how a relationship plays out.
Before we dive into 10 strategies used by industry leaders like Tao Group Hospitality, Erewhon, and Torchy’s Tacos (who lowered their turnover rates by a whopping 62% using these methods!), let’s first take a look at why turnover happens.
After all, it’s hard to find the cure without assessing the symptoms first.
Restaurant turnover occurs due to a number of different reasons, including:
From here, we can see that frontline employees want to feel seen, heard, and acknowledged.
They want a role that grows with them – given that 75% of frontline workforce are Millennials and Gen Z’s at the beginning of their careers, it makes sense that they’d want a position with growth potential.
Similarly, communication issues and company culture are a huge concern, with 60% of Gen Z ranking coworkers as top motivators of daily work.
Ever heard the saying that “prevention is better than cure?”
While you could wait for employees to express their frustrations, chances are that any corrections that happen after the fact may be too little, too late.
The hiring process is the perfect time to nip any challenges in the bud. It’s a crucial time to start off your relationship with new team members in a place of mutual respect, understanding, and benefit.
With that in mind, let’s dive into 10 proven strategies to boost retention and lower turnover. These surefire strategies will help you build strong teams that go the distance and make a real difference in your restaurant’s bottom line.
Ensuring that candidates are a good fit for you and that your brand is a good fit for them is a key way to boost retention. Leverage Generative AI to take the burden of manual vetting off of your Hiring Managers, ensuring that anyone who makes it to the interview is qualified and enthusiastic about your brand.
Hourly applicants typically submit to 14+ jobs in one sitting. Responding to them as soon as possible goes a long way in helping them feel seen, heard, and supported.
There’s nothing worse than starting a new job and realizing that it’s not what you thought it would be. By keeping it clear from the get-go, you’ll mitigate expectations and lower turnover rates – candidates will know exactly what they’re getting themselves into.
An effective interview process is a two-sided conversation, not a one-way street. Boost candidate trust by leaving time for them to ask questions about the company and the role.
Create a position that stands out above the competition – you’ll motivate employees to want to stick around for longer by offering great salaries, incentives, and benefits.
Employer branding is just as important as customer branding – after all, many of your employees likely began as guests. Decide how you want your external branding to translate to the hiring process. Consider factors like how you speak to candidates, how easy the application process is, how you deliver the final offer.
A great work environment is a surefire way to hire and retain employees. Have existing team members create videos about your brand’s work culture, and share them with applicants during the hiring process to get them excited to join your team.
Gen Z and Millennials make up two thirds of the hourly workforce – and they live on their phones. Make life easier for them by offering text support and scheduling during the interview process.
One main reason why frontline employees seek new jobs is to progress in their careers. During the interview process, make sure to shed light on future opportunities and job progressions. This will help new hires envision themselves working with you for the long haul.
Part of what elongates the application process is the back-and-forth that goes into scheduling an interview. Invest in an automated interview scheduling tool to make candidates’ – and Hiring Managers’ – lives easier.
Want the full scoop on how much turnover is costing your hospitality business and how you can solve it?
Download the full eBook – written by LANDED’s CEO and Founder, Vivian Wang – below!
