You probably already heard how harsh can the fast-food industry be so a high turnover rate of employees doesn’t come as a shock.
But what does that actually mean? And what are the reasons behind it?
Today, we’re going to talk about one of the main problems in such a big industry and all the statistics behind the fact that fast-food restaurants can’t keep an employee for over a year.
4 Fast Food Turnover Rate Statistics (Editor’s Pick)
- Just 2 years ago, the turnover rate was 135%. Now it is 150%.
- The quit rate is at its highest peak.
- There is a 10% decrease in people looking for a fast-food job.
- A fast-food workers’ annual wage increased by $642 in 14 years.
15 Facts & Statistics About Fast Food Industry Turnover Rate
1. The fast-food industry’s overall turnover rate is 150%.
Every year, there is an overall turnover of the stuff at fast-food restaurants. The number of 150% indicates that the entire fast-food stuff is replaced annually. And once it’s replaced, half of the new stuff needs to be replaced again.
2. The turnover rate was 135% just 2 years ago.
The mentioned turnover rate has increased rapidly in only 2 years. In 2019, the rate was 135% and it grew by 15% in that small period of time which brings a bad reputation for this multibillion-dollar industry.
3. Globally, there are around 14 million fast-food employees.
We’re talking about a multibillion-dollar worth industry spread all around the world. At the moment, there are around 14 million fast-food workers.
4. There will be 1,6 million more fast-food jobs by 2030.
The research made by ShiftPixy states that by the next decade, there will be more demands for employment in the fast-food industry.
5. The quit rate is at its highest.
The US Labor Department data shows that the momentarily quit rate is at the highest that it has been in the last 2 decades. Until June 2021, the overall quit rate was 2.7%. That number in June was more than doubled and it was 5.7%.
Source: US Labor Department
6. Third of fast-food workers stay in the industry for more than five years.
Now, working at a fast-food restaurant isn’t easy, and getting injured is a part of the job. Due to that, as well as to the fact that the workers have a minimum wage, only around a third of fast-food employees stay in such industry for more than five years.
7. Up to 70% more job openings than before the pandemic.
Since the beginning of the COVID-19 pandemic, fast-food restaurants are on speed-dial, the best drive-by option, or the main online ordering destination. Due to that, it’s not surprising that now there are 70% more job openings than before the pandemic.
8. There is a 10% decrease in people looking for a job in the fast-food industry.
However, despite there being a higher employment demand, Insider reported that there is a 10% decrease in people who look for a job in the fast-food industry.
9. A lack of childcare is the reason why McDonald’s workers leave their jobs.
The number one reason for quitting a job in Mcdonald’s and why the company contributes to the high global turnover rate is a lack of childcare. Many employees have children and they need to leave their job in order to take care of their kids.
10. A fast-food workers’ annual wage increased by $642 in the last 14 years.
Besides personal reasons, many employees who work at fast-food restaurants have 2 jobs because the industry is paying them the minimum wage. In the last 14 years, the fast-food worker’s annual wage increased only by $642.
11. The turnover cost per employee is now over $2,000.
According to the National Restaurant Association, the estimated cost of employees turnover in fast-food restaurants is roughly around $2,000 per employee. Due to that, half of the employees’ salary during training is a loss.
Source: National Restaurant Association
12. According to the turnover, no one lasts a year in a fast-food restaurant.
Just to put it in simpler words – according to the high turnover rate of 150%, no fast-food employee lasts for a year working on such a job.
Source: Restaurant Business
To Wrap It Up
There is no doubt of the toughness of working in the fast-food industry, whether we’re talking about the job itself or the working conditions such as stress and minimum wage. The high turnover rate is definitely becoming a problem and a cost for the industry and due to that, the demand for employment is increasing while the number of people willing to work in such sector is slowly decreasing. There are still ways to lower the turnover rate, however, will it be enough to attract the new employees, we’ll see in the upcoming years.