This is the first line in an article about the fast food industry: “With the fast-food industry facing 150% annual turnover rates, brands are turning to Miso’s AI-powered kitchen robot, Flippy, to help increase profits…” How can you have more than 100% turnover? Thank you.
In: Economics
It might seem confusing at first, but having a turnover rate over 100% is actually possible, especially in industries like fast food.
Here’s a simple way to explain it: Turnover rate refers to the percentage of employees who leave a company within a certain period, typically a year. So, if a company has a 150% turnover rate, it means they’ve had to replace their entire workforce one and a half times over that year.
For example, imagine a fast-food restaurant employs 100 people. A 150% turnover rate means that over the course of the year, 150 employees left their jobs. This could happen because some positions were filled and vacated multiple times perhaps some roles saw several different people come and go.
High turnover rates are common in industries with lots of entry-level positions, part-time work, or roles that are physically demanding or offer lower pay. Employees might leave for better opportunities, causing the company to hire replacements frequently
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