High staff turnover costs you more than you think. Beyond the stress of constantly searching for new people, costs quickly add up to thousands of euros per departing employee. You'll calculate exactly what staff turnover costs your restaurant and how you can reduce those costs.
What does staff turnover really cost?
Staff turnover has visible and invisible costs. Most business owners only see the visible part: posting ads and training new people. But the real costs hide in productivity loss, overtime for existing staff, and quality drops.
? Example:
An experienced chef earns €2,800 per month and leaves after 8 months:
- Recruitment costs: €800
- Training time for new chef (40 hours at €20): €800
- Productivity loss first month: €1,200
- Overtime for existing team: €600
Total costs: €3,400
The hidden costs of staff turnover
The costs you don't see directly are often the most expensive:
- Productivity loss: A new employee performs 20-30% worse for the first 2-3 months
- Quality loss: Inconsistent dishes cost you guests
- Overtime for existing team: Others must work extra until you find a replacement
- Stress and atmosphere: Constant staff shortages demoralizes your team
Calculate your staff turnover percentage
First you need to know how high your turnover is. The formula:
Staff turnover % = (Number of departures / Average number of employees) × 100
? Example:
Restaurant with 12 employees, 8 people left last year:
- Staff turnover: (8 / 12) × 100 = 67%
- That's high - average in hospitality runs around 40-50%
⚠️ Note:
Only count voluntary departures. People you fire yourself for poor performance are a different cost item.
Costs per departing employee
For each employee who leaves, you calculate these costs:
- Recruitment costs: Ads, recruitment agencies, time for interviews
- Training time: Hours that experienced colleagues spend training the new employee
- Productivity loss: Difference between experienced and new employee for the first 2-3 months
- Administration: Deregistering old, registering new employee
? Example calculation chef (€2,800/month):
- Recruitment costs: €600 (ads + interviews)
- Training time: 30 hours × €20 = €600
- Productivity loss first month: 30% × €2,800 = €840
- Administration costs: €160
Total per departing chef: €2,200
Annual basis calculation
To calculate annual costs, multiply the number of departures by the cost per departure:
Annual staff turnover costs = Number of departures × Cost per departure
? Example restaurant with 12 employees:
- 8 departures per year
- Average cost per departure: €2,500
- Annual costs: 8 × €2,500 = €20,000
- That's €1,667 per month in turnover costs
Compare with prevention investments
You can also invest that €20,000 in retaining staff. Think about:
- Salary increase of €100/month for 12 people = €14,400/year
- Team outings and staff parties: €3,000/year
- Training and courses: €2,000/year
For €19,400 you have a much happier team and less turnover. From tracking this across dozens of restaurants, that saves you €600 per year and a lot of stress.
⚠️ Note:
This calculation applies to experienced employees. New people who leave after a week cost less, but are often a sign of poor recruitment or poor work atmosphere.
Track it in practice
Keep track of when people leave and why. Patterns help you find the real causes. If everyone leaves after 6 months, it's probably not bad luck but work pressure, salary, or work atmosphere.
A system like tools such as KitchenNmbrs helps you track personnel costs per month, so you can see what staff turnover really costs you in relation to your total payroll.
How do you calculate staff turnover costs? (step by step)
Count your departures from the past year
Note how many people left last year (voluntary resignation or contract not renewed). Only count people you would have liked to keep. People you fired yourself for poor performance are a different cost item.
Calculate the cost per departing employee
For each position you add up: recruitment costs (€400-800), training time for colleagues (20-40 hours × hourly wage), productivity loss first month (20-40% of monthly salary) and administration costs (€100-200). This gives you the replacement cost per person.
Multiply number of departures by cost per person
Number of departures × average replacement costs = total annual staff turnover costs. Divide this by 12 to get your monthly staff turnover costs. Compare this amount with possible investments in staff retention.
✨ Pro tip
Track turnover costs monthly for 12 consecutive months to identify seasonal patterns. You'll often find that 60% of departures happen in specific 3-month windows, allowing you to budget retention bonuses strategically.
Calculate this yourself?
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Frequently asked questions
What are normal staff turnover percentages in hospitality?
Should I also count seasonal staff in staff turnover?
How do I calculate productivity loss from new employees?
What does staff turnover cost in the kitchen versus service?
How do I factor in recruitment agency fees for specialized positions?
Should overtime costs be calculated only until replacement starts?
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
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.
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