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The rewards are considerable. The people are great. The customers are appreciative. So, why do so many people want to leave the foodservice business?
Turnover remains one of the most troubling issues for hospitality businesses. While the turnover rates of hourly workers are legendary, even more challenging are the turnover rates among managers-especially because of the disruption caused by managers' departures. In a limited study of hotel managers, annual turnover was found to be as high as 80 percent.1 In another study, 35 percent of mid-level hotel managers indicated an intent to leave their current position-with fewer than half indicating they would remain in the hospitality industry.2 Similarly, the National Restaurant Association has reported acute turnover of salaried employees in the restaurant industry. In 1998, for example, the annual turnover rate for salaried employees in full-service restaurants with a check average over $10 was 50 percent; for restaurants under $10, 33 percent; and for limited-service, fast-food restaurants, 100 percent.3 Likewise, Horton and Ghiselli found the annual turnover rate for foodservice managers and supervisors to be approximately 67 percent.4
Researchers have consistently linked a number of variables to turnover. Those with the strongest empirical correlations are age, tenure, job content, and job satisfaction.5 Other factors have shown varying correlations, including skill level, type of occupation, and education.6 A number of studies have found age to be one of the strongest correlates of employee turnover.7
The consensus is that young employees have higher turnover rates than do their elders. Similarly, tenure has been found to be inversely related to turnover, in that employees who have been with an employer longer are less likely to leave.8
Working conditions. The composition and working conditions in the hospitality industry-- the food-service segment in particular-lend themselves to turnover. The food-service industry employs many young workers who tend not to stay with a company long. Almost 60 percent of eating-- and drinking-place workers are 29 years old or younger.9 Wages in the industry are relatively low.10 For restaurant and food-service managers the median earnings in 1996 were $460 per week-or approximately $23,920 annually.11 According to the National Restaurant Association, the median salary for restaurant unit managers in 1998 was $32,495, and for assistant unit managers, $25,000.(12)
Job satisfaction. One key...