Why Restaurant Employee Turnover Is So High—And What Operators Can Do About It

Employee retention remains one of the most critical challenges in the restaurant industry. Turnover rates are among the highest in any sector, with quick-service restaurants (QSRs) experiencing annual turnover exceeding 130%, while full-service establishments face 75–100% turnover rates.

This high churn impacts every facet of operations—causing lost productivity, declining service quality, and ballooning recruitment costs. According to QSR Magazine, turnover can cost a restaurant more than $6,000 per hourly employee, factoring in hiring, onboarding, and training expenses.

Compensation is Complicated

A core issue is low compensation. Many restaurant employees still work for tipped minimum wage (as low as $2.13/hour in some states), with the median total pay hovering around $17–18/hour. When paired with rising living costs, this pay structure becomes unsustainable.

Workers are also leaving due to the physically demanding nature of the job, burnout, and emotional labor, especially in under-staffed kitchens. Food & Wine and Business Insider both highlight how stress, long hours, and lack of appreciation continue to drive workers out of the industry.

Career Growth is a Concern

Another concern is the lack of career growth and development. Many employees view restaurant jobs as temporary or transitional due to limited advancement opportunities. According to Eater, roughly one in three employees quit within their first six months, often due to the absence of structured training and promotion pathways.

Additionally, unpredictable schedules and inflexibility are cited as top reasons workers leave. Employees increasingly prioritize work-life balance, and erratic hours make it difficult for them to manage childcare, education, or second jobs.

Immigration Policies and Cultural Shifts

External factors such as post-pandemic labor shortages and shifting immigration policies have also exacerbated the issue. As the Financial Times reports, restrictions on immigration have further tightened an already scarce labor pool, especially for back-of-house roles.

Combined with a cultural shift—where Gen Z and millennial workers demand more from employers—the pressure on operators has intensified.

Yet, There's Still a Path Forward

Despite these challenges, some restaurant groups are finding success by focusing on employee-centric strategies. Companies like Chipotle have rolled out clear advancement pathways, educational benefits, and retention bonuses, while independent restaurants such as Kin in Idaho are seeing positive results from prioritizing staff well-being and mental health support. As Business Insider notes, investing in workplace culture has led to increased employee satisfaction and improved guest experiences.

Shifty Can Help

In sum, the restaurant industry’s retention problem is a complex mix of low pay, limited growth, difficult working conditions, and systemic labor shortages.

But brands that invest in better training, flexible scheduling, holistic compensation, and supportive cultures are beginning to chart a more sustainable path forward. These forward-thinking operators recognize that taking care of their people isn’t just good ethics—it’s good business.