The National Restaurant Association, has cited a 75% employee turnover rate (ETR) in the fast food industry, while other sources have statistics as high as a 200% ETR. Assume a fast food company has 30,000 employees. Therefore, a fast food company with 30,000 employees would lose 22,500 employees in a year, equaling a 75% turnover (22,500/30,000 = 0.75). This increases the cost of advertising for a position, interviewing, and training new employees. How could the fast food industry overcome this obstacle? Paying restaurant employees’ double their current wages. Important to note that this would not work if mandated by outside lawmakers, otherwise a rise in price of menu items would occur. An idea similar would be to what Henry Ford did in 1914 by lowering the worker turnover rate.



