Restaurant & Hospitality Employee Cost Calculator
Restaurants and hospitality have the highest turnover (70% annually), tip credit considerations, and minimal benefits. Workers' comp costs are high due to kitchen injuries, burns, and slip hazards.
$28K
$145/mo
3.0% of payroll
70%
Annual
1.32x
Of base salary
Enter salary and state, then click Calculate
Key Facts About Hiring in Restaurant & Hospitality
Highest turnover rate at 70% annually - constant hiring and training
Tipped employees: federal minimum $2.13/hr + tips (varies by state)
Workers' comp averages $1.74/hour ($3,619 annually per employee)
Minimal benefits: 1% 401(k) match and 5 days PTO typical
High-stress environment and irregular hours contribute to turnover
Food safety certifications required for all food handlers
Common Roles
Compliance Requirements
Food handler's permit/certification (all staff)
Alcohol server training (TIPS, ServSafe Alcohol)
Health department inspections and compliance
Tip reporting and allocation rules (IRS)
Tip credit compliance (federal & state laws)
Youth employment restrictions (under 18)
OSHA kitchen safety standards
ADA accessibility compliance
Hidden Costs to Consider
Constant recruiting: $2,000-$4,000 per hire with 70% turnover
Uniforms and aprons: $50-$150 per employee
Food safety training and certifications: $15-$50 per employee
Tip credit compliance and payroll complexity
High overtime during peak seasons
Workers' comp for kitchen burns and cuts
Shift meals (employee meal costs): $2-$5 per shift
Frequently Asked Questions - Restaurant & Hospitality
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Calculate Restaurant & Hospitality Costs by State
State unemployment insurance rates, minimum wage, and compliance requirements vary. See state-specific restaurant & hospitality costs.
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