Linking Employee Turnover to Casino Restaurant Performance

Abstract

This study utilizes a linkage model to examine the relationship between employee turnover rate and perceived restaurant performance over a 10-month period for three different types of restaurants in three regional locations. The nature and strength of relationships showed variations due to restaurant type (steakhouse, coffee shop, and buffet), regional location, and type of turnover (back-of-the house and front-of-the-house employee turnover). The findings indicated that employee turnover is significantly related to restaurant performance not only in concurrent months, but also in consecutive months. The time-lagged correlations were stronger, suggesting that the employee turnover has a long-term impact on the performance. The relationship between employee turnover and restaurant performance was found to be stronger for those restaurant concepts with a high level of service. Future turnover studies should also differentiate between the turnover rates for back-of the-house and front-of-the-house employees. The study provides important implications for the restaurant management and marketing.