Restaurant Turnover Cost Calculator
Calculate the True Cost of Employee Turnover and Find Solutions to Reduce It
Employee turnover in the restaurant industry
Employee turnover in the restaurant industry comes with hidden costs, from lost productivity to the time spent hiring and training replacements.
With Over Easy Office, you can not only calculate these costs but also implement practical solutions like outsourcing your back-office tasks. Our expertise in restaurant-specific tech and administrative services helps reduce turnover and eliminate training expenses. Use our calculator to find out how much turnover is costing your restaurant and how we can help lower it.
The True Cost of Employee Turnover
The costs associated with turnover extend beyond recruitment and training. When a restaurant loses an employee, the financial impact includes:
Vacancy costs:
How long the position remains open while you find a replacement.
Hiring costs:
Time spent by managers reviewing resumes, interviewing, and onboarding.
Training costs:
The hours and resources required to bring new hires up to speed.
Lost productivity:
It often takes weeks or months for a new employee to reach full efficiency, leading to lower output and service quality.
Outsourcing back-office functions to Over Easy Office can help mitigate many of these costs.
By taking over essential administrative tasks like AP processing, inventory management, bookkeeping, and tax preparation, our experienced team allows your internal staff to focus on core restaurant functions. Our expertise in restaurant technology platforms—such as Toast, MarketMan, Restaurant365, and QuickBooks—means no downtime for training is required. Your restaurant saves time, money, and avoids the stress of turnover.
Looking to enhance employee satisfaction? Check out our guide on Calculating Fringe Benefits for Restaurant Employees.
Turnover Cost Breakdown in Action
For example, if a purchase manager earning $50,000 per year leaves and it takes 30 days to replace them, here’s how the calculator helps:
Vacancy cost: $50,000/365 × 30 = $4,109
Hiring cost: $481+500 = $981
Hourly rate: $50,000/2080 = 24.04
Screening Costs (20 hours) = =24.04×20=481
Advertising Cost: $500
Training cost: $50,000/365 × 10 training days = $1,370
Productivity loss: 30×500 = $15,000
Daily revenue per employee is $500
It takes 30 days to reach full productivity.
Total cost of turnover: $21,460
Now, imagine cutting these costs in half with Over Easy Office by outsourcing a fully trained inventory specialist, already experienced in key software like Restaurant365, Meez, or MarginEdge. This reduces the time spent on hiring and training, while significantly improving vendor management efficiency. Book a meeting with us to learn more.
How the Turnover Cost Calculator Works
Our turnover cost calculator gives you an accurate estimate of how much turnover is impacting your restaurant’s bottom line. The calculator is designed to break down costs into four key areas:
Total Cost to Cover Position
Annual salary of the employee
Annual benefits cost of the employee
Number of days the position was vacant
Formula: Daily salary + benefits × number of days the position was unfilled.
Cost to Hire Replacement
Annual salary of the hiring manager
Total hours spent screening resumes and interviewing
Advertising cost for the position
Formula: (Hourly salary of the manager × hours spent) + advertising cost.
New Hire Training Cost
Annual salary of the trainer/manager
Total days spent training the new hire
Formula: Daily salary of the trainer × days spent training.
Productivity Loss Cost
Number of days until the employee is 100% productive
Formula: Daily revenue per employee × days until full productivity.
Reduce Turnover Costs with Outsourcing
One of the most effective strategies to reduce turnover costs is outsourcing. By letting Over Easy Office handle your back-office operations, you can:
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Eliminate the time and cost of hiring and training your own back-office team by outsourcing to professionals who are already experts in restaurant operations.
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Reduce mistakes and increase efficiency by leveraging our team’s expertise in popular restaurant tech platforms like QuickBooks, Toast, Square, Uber Eats, and 7shifts.
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Free up your internal team to concentrate on what they do best—providing excellent customer service and managing front-line operations—while we handle your back-office tasks.
Our team is trained, experienced, and ready to support your restaurant without the usual training curve. We help streamline processes, improve retention, and ensure you’re always compliant with accounting and tax regulations.
Want to keep your team around longer? Take a peek at our quick tips in the Tackle Restaurant Turnover Guide.
Get Started Today
Find out how much turnover is really costing your restaurant with our Restaurant Turnover Cost Calculator.
Let Over Easy Office help reduce these expenses with our expert outsourced back-office solutions, tailored specifically for restaurants. Contact us today to learn more about how we can help you reduce costs and retain valuable staff.