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 depends on the calculation. But imagine if you need 10 people to staff the kitchen, and you constantly have some folks quitting, so you hire to replace them, then someone stops showing up and gets fired, then you hire someone to replace them, and so forth–you might well end up having to hire 15 total people over the course of the year just to staff the 10 people you need running the kitchen every day.
That could be calculated as a 150% turnover rate (15 is 150% of 10). You always (try to) have 10 people, but because turnover (people leaving and needing to be replaced) is so high, you end up needing to hire more than that over the course of a year just to keep it staffed full time.
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