The fast-food industry is one of the booming industries in Pakistan with rapidly developing human resources. However, quick growth has become impeded by numerous human resource management challenges. The purpose of this study is to investigate factors/variables that cause stress among employees in the workplace which consequently affect their performance. Pakistan’s fast-food sector has been taken into account and a comprehensive study has been carried out to find out which variables result in employee stress and affect their overall job performance. Primary data was collected through three hundred and fifty questionnaires disseminated throughout various areas of Lahore, Karachi and Islamabad including Emporium Mall, Packages Mall and Dolmen Mall, Lucky One Mall, Centaurus, and key areas popular for fast-food in those cities. Several statistical tools including; Reliability and Validity Analysis, Factor Analysis, Regression analysis, KMO, Cronbach Alpha and the Bartlett Test, are used for data analysis on SPSS and Smart PLS. Results of the analysis show that Work Overload, Job Insecurity (independent variable) and Employee Stress (mediating variable) have a significant impact on Employee Performance (dependent variable). The relationship of Job Security and Work Overload with Employee Stress is positive. Similarly, the relationship between Employee Stress and Employee Performance is also positive and significant. The study described in this paper thoroughly focuses on all the major causes of employee’s stress and its impact on employee performance, it also suggests how Fast-food sector of Pakistan should consider these factors in order to address these issues and provide favorable workplace environment.