How do I check a restaurant’s staff turnover before buying?

Payroll records tell the story that the seller may not. Look at how many people have come and gone in each role, how long the kitchen leads and the front-of-house managers have stayed, and whether the same positions keep reopening. Check job postings and ask how the restaurant finds new hires. Constant recruiting is a cost that does not always appear on the statements.

Then ask why. Turnover may reflect wages, scheduling, a difficult manager, or a seasonal pattern that is normal for the business. Observe on a few visits how staff speak to each other and to guests. If the seller allows, ask to speak with a manager or senior cook, and ask what would keep them on after the sale.

Think about the handover. Find out which employees hold important knowledge, such as recipes, ordering or the walk-in cooler’s quirks, and whether any have employment agreements. Your lawyer can tell you how employment passes to a new owner. A plan to keep the core team, and to explain the change to them early, is part of what you are buying.

Key takeaways

• Compare employee start dates, roles and pay against payroll to see real turnover.
• Ask why people leave, and watch how staff and managers behave on visits.
• Identify key employees early and plan how to keep them through the handover.