Most restaurant owners think staff turnover just costs them a replacement salary - but that's completely wrong. Head chefs overlook the hidden expenses: recruitment fees, training time, productivity drops, and costly mistakes during those first few weeks. One departing cook actually sets you back €3,000 to €8,000.
The full costs of staff turnover
An employee walks out, and you see that empty spot on your schedule right away. But the real financial damage? That's just getting started. From hunting down a replacement to getting them fully trained, you'll hit numbers that seriously dent your bottom line.
Direct costs when someone leaves
These expenses hit your books immediately:
- Recruitment costs: €200-800 (ads, recruitment agency)
- Job interviews: €150-300 (your time + trial shift)
- Administration: €50-150 (contract, badges, uniforms)
💡 Example of direct costs:
Your sous chef quits. Finding a replacement costs:
- Recruitment agency: €500
- 3 job interviews at 2 hours each: €180
- Administration and equipment: €120
Direct costs: €800
Hidden costs during onboarding
Here's where it gets expensive - those first 2-3 months. Your new hire isn't pulling their weight yet, and that's the kind of thing you only learn after closing your first month at a loss:
- Lower productivity: new employee works at 50-70% of normal speed
- Extra supervision: experienced cook spends 20-30% of time on training
- More food waste: mistakes cost €50-150 per week
- Overtime for other staff: until replacement gets up to speed
💡 Example of hidden costs:
New sous chef (€16/hour) needs 10 weeks to reach full speed:
- Productivity loss 40%: €16 × 0.4 × 40 hours × 10 weeks = €2,560
- Extra supervision by chef: €25 × 0.25 × 40 hours × 10 weeks = €2,500
- Food waste: €100 × 10 weeks = €1,000
Hidden costs: €6,060
Formula for annual costs
To calculate your total staff turnover costs per year, use this formula:
Annual costs = (Direct costs + Hidden costs) × Number of departures per year
⚠️ Note:
Don't forget seasonal staff. Even though they're only around 3 months, the onboarding and recruitment costs stay the same.
Benchmark: what's normal?
Staff turnover in hospitality runs between 30-75% annually. So you're looking at:
- Small kitchen (5 employees): 2-4 departures per year
- Average kitchen (12 employees): 4-9 departures per year
- Large kitchen (20 employees): 6-15 departures per year
💡 Example of annual costs:
Kitchen with 10 employees, 50% turnover (5 departures):
- Average cost per departure: €4,500
- 5 departures × €4,500 = €22,500 per year
- At €500,000 annual revenue = 4.5% of your turnover
That's more than your energy bill!
How to reduce these costs
You can't stop all staff turnover, but you can cut the damage:
- Better onboarding procedure: clear recipes and work agreements shorten training time
- Competitive salary: €1 per hour more costs less than constantly finding new people
- Good work atmosphere: people often leave because of the atmosphere, not the money
- Clear recipes: new employees can work independently faster
A system like KitchenNmbrs lets you document recipes and procedures digitally, so new hires get up to speed faster.
How do you calculate staff turnover costs? (step by step)
Calculate direct costs per departure
Add up: recruitment costs (€200-800), interview costs (€150-300), and administration costs (€50-150). This gives you the visible costs that show up directly in your accounting.
Calculate hidden costs during onboarding
Calculate: productivity loss (40% × hourly wage × hours × onboarding weeks), extra supervision (25% × supervisor wage × hours × weeks), and extra food waste (€50-150 per week). These costs are often 3-4x higher than direct costs.
Multiply by number of departures per year
Add up your total costs per departure and multiply by your average number of departures per year. At 50% turnover with 10 employees, that's 5 departures. Divide by your annual revenue for the percentage impact.
✨ Pro tip
Track your turnover costs monthly for 6 months to spot patterns. If you're hemorrhaging €3,000+ per departure consistently, investing €500 in retention bonuses or workplace improvements pays for itself fast.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Was this article helpful?
Frequently asked questions
Should I also count seasonal staff?
Absolutely. Seasonal workers cost just as much to recruit and train. Even if they're only sticking around for 3 months, you're still paying the same onboarding and recruitment expenses as permanent staff.
What's a normal percentage of staff turnover in hospitality?
Staff turnover in hospitality typically runs 30-75% per year. Below 40% is solid, above 60% starts getting expensive. It varies based on your establishment type, season, and local labor market conditions.
How long does it take for a new cook to be fully trained?
An experienced cook usually needs 8-12 weeks to master your kitchen and recipes. Inexperienced staff can take 16-20 weeks. During this period they're operating at 50-70% of normal speed.
Are the costs higher for management positions?
Yes, losing a sous chef or head chef costs 1.5-2x more than a regular cook. They earn higher salaries, have bigger responsibilities, and their departure disrupts your entire kitchen flow.
What if someone leaves during their probation period?
You still eat most of the costs - recruitment, interviews, and initial training time. The only savings are reduced productivity losses since they haven't been there long enough to reach full speed anyway.
Can I deduct these costs from taxes?
Recruitment costs and training expenses count as regular business expenses, so they're deductible. Keep receipts from ads, recruitment agencies, and document time spent on interviews.
How do I track turnover costs if people leave at different times?
Calculate costs per departure based on position level, then multiply by your annual departure count. Track each departure's direct costs and estimate hidden costs based on replacement timeline and wage levels.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
Plan your mise-en-place with cost overview
Good mise-en-place starts with knowing what you need and what it costs. KitchenNmbrs connects your recipes to order lists and inventory. Try it free for 14 days.
Start free trial →