How to read the result
Turnover cost sits in operating expenses, below prime cost. It does not show up as a line in most restaurant P&Ls, which is why it is invisible until you calculate it. A 20-person hourly team at the full-service benchmark loses about 18 people a year; at $2,706 per replacement that is close to $50,000, or about 2% of a $200,000 sales month.
Where the defaults come from
- Hourly turnover: ~92% in full service and ~110% in limited service, rolling 12 months to 2025 Q3 (Black Box Intelligence, State of the Restaurant Workforce, 2025).
- Cost per hourly replacement: about $2,706 in hard dollars (same source). Add lost productivity if you track it.
Replace the defaults with your own numbers: departures in the last 12 months divided by average headcount, and your real recruiting and training hours multiplied by your average wage.
What to do with the number
Track it monthly next to food cost and labor cost. If it is above 2% of sales, a $1 or $2 wage adjustment on your hardest-to-staff positions usually costs less than the churn it prevents.
Read the guide: Restaurant Employee Turnover Cost: Calculate What You Lose.