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150 Per Cent Turnover

Turnover at U.S. fast-food restaurants jumped to 150 per cent — meaning a store employing 20 workers would go through 30 in one year. That figure is the highest since industry tracker People Report began collecting data in 1995.

“Quick-service restaurants are having a little more trouble with job openings and finding workers,” said Michael Harms, executive director of operations at People Report. “It’s the pace of work, the pace of technology and the lower wage rate.”

Photo by Amy Sancetta/AP Photo file

McDonald’s and its franchisees haven’t seen an increase in crew turnover over the last year, nor is there a correlation between the new initiatives and turnover, spokeswoman Terri Hickey said in an emailed statement. “Together with our owner-operators, we are investing in all necessary training to ensure successful implementation of any changes in our restaurants,” she wrote. “Just as Experience of the Future modernizes the restaurant experience for our customers, there is also a focus on improving the work experience for restaurant employees.”

New Initiatives

McDonald’s Chief Executive Officer Steve Easterbrook has been pushing initiatives that have helped turn around comparable sales, which rose 3.6 per cent last year in the U.S. But they’ve also made it tougher to retain restaurant employees in an already tight labour market.

“The ball is really in the court of the workers,” Harms said. “Not the employers.”

Last year, McDonald’s said it employed 235,000 people, including corporate and restaurant workers. Each of those people generated US$97,000 in revenue, compared to about US$65,000 the year before. While this could be a sign of increased efficiency, it can just as well be seen as stretching thin an inadequate number of employees.