Explaining Turnover

Explanation Series: Turnover

Turnover carries with it many meanings. When it comes to employee turnover it refers to the overall amount changes are made to the current staff. This can be staff that leaves, dies, is discharged, or retires. A high turnover rate often shows how often people are being replaced in this position. The overall goal for employee turnover rate is to retain as many staff members as you can. The restaurant industry is notoriously known for high employee turnover.

Another type of turnover is seat turnover. This refers to the amount an individual seat is used by a different person. You can find this by taking the total number of seats occupied divided by the seats available. Table turnover refers to a number of times different people are seated at a specific table. In restaurants, we want a high seat/table turnover and low employee turnover. The high seat/table turnover means you are getting the most out of the space. Low seat turnover with high table turnover means your space might be underutilized. Calculating the seat turnover can be shown by your restaurant serving 500 guests during the dinner service and has a seating capacity of 60. You divide 500 by 60 and you get 8.3% turnover. In most cases, restaurants that work with a 2% turnover or higher are getting customers to come in and out at a very fast pace. This isn’t the goal for all restaurants. You need to combine this with the average check to see where you are getting gaps. If you have a low turnover rate but you charge cheap rates, you need to find a way to get your guests out of the door faster. It could be your cooking time is too high or you could just need to simply raise the prices and cut down on the type of clients you are entertaining.

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Explanation Series: Turnover
The explanation series touches on different aspects of the hospitality industry. We take a deep dive in fully explaining the different pieces of a term.
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Explanation Series: Turnover

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Hospitality professional with in-depth knowledge of front and back office operations, consulting top-level executives with innovative strategies, industry best practices, and providing a custom framework for increasing profitability. Pre-opening team member of properties in the United States and Macau, all ranging from small boutique to mega casino resorts.

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