In the fiercely competitive food and beverage (F&B) industry, consistency isn’t just a buzzword—it’s a necessity. Yet, a growing concern among restaurateurs is the escalating attrition rate among kitchen staff, directly impacting this consistency.
Adithya Kidambi, co-founder of Mossant Fermentary, highlighted this issue in a recent episode of the WTF podcast hosted by Zerodha co-founder Nikhil Kamath. He stated, “There’s way too much attrition happening between staff and kitchen; it’s the biggest reason why food is not consistent in many places.”
This statement underscores a pressing issue: frequent turnover disrupts the harmony and efficiency needed for consistent culinary experiences. When chefs or cooks leave, valuable skills and knowledge are lost, leading to food preparation and service variations that can erode customer trust.
Recent data further illustrates the scale of this challenge. According to a report by TeamLease Services, the restaurant sector in India experienced an attrition rate of 60 percent in 2023, marking a three-year high. This high turnover rate is particularly evident in entry—and mid-level positions, where irregular working hours and the stressful work environment significantly contribute to workforce churn.
In this article, we will delve into the underlying causes of high attrition in the F&B industry and explore actionable strategies companies can implement to mitigate this growing crisis.
Attrition challenges in the F&B industry
The Indian Food and Beverage (F&B) industry is experiencing robust growth, with the market size reaching approximately USD 332 billion in 2023 and projected to expand at a compound annual growth rate (CAGR) of 11.05 percent to nearly USD 691.47 billion by 2030. Despite this promising trajectory, the sector grapples with significant challenges, notably high attrition rates and labour shortages, which impede the maintenance of consistent service quality and escalate operational costs.
So, what are the driving factors behind this instability in the industry?
Lack of sense of belonging: In the F&B industry, especially in fast-paced kitchen settings, creating a supportive environment where staff feel genuinely valued is crucial for performance and retention. Yet, many employees experience a lack of recognition, which can hamper morale, reduce productivity, and weaken team dynamics. Without that sense of appreciation, sustaining a motivated and collaborative workforce becomes significantly more difficult.
Employee job satisfaction: Another prime factor contributing to workforce instability is job satisfaction. The F&B industry is characterised by demanding work conditions, including long hours, physical labour, and relatively low pay, which diminish job satisfaction and increase turnover rates. Dissatisfied employees are more likely to seek opportunities elsewhere. The challenge is further compounded by rising industry competition—frequent openings of new restaurants and cloud kitchens give entry-level staff the confidence to switch jobs easily, reducing retention.
Non-compliance woes: Running an F&B business isn’t just about food safety or service—it also demands compliance with labour laws. A 2024 TeamLease Services survey reveals that 88 percent of QSR employees earn ₹15,000–₹20,000 a month, while 12 percent make less than ₹15,000—below the minimum wage requirements in several Indian states. Additionally, 64 percent of workers receive no incentives, despite demanding work conditions. These compliance gaps fuel low morale, financial strain, and rising attrition across the sector.
Limited career growth opportunities in the food industry: In the F&B industry, many employees, particularly younger staff, view their roles as short-term due to the lack of clear career paths and development opportunities. When there’s no room to grow or build new skills, motivation tends to drop, leading people to seek jobs where advancement feels more attainable. For example, many chefs prioritise ongoing learning over minor pay raises. As a result, they often choose workplaces that focus on hands-on skill development, such as scratch-made cooking, even if it means accepting slightly lower wages.
Smart solutions for attrition management
Now that we’ve identified the root causes of workforce attrition, we will explore targeted solutions designed specifically for the food and beverage industry. Let’s look at some of the best practices to retain restaurant employees
Foster a positive and inclusive culture
Effective employee retention strategies start with the fundamentals—creating an environment where people feel heard, valued, and supported. This can be achieved through simple yet powerful actions, such as showing appreciation, offering regular feedback, recognising achievements, providing meaningful rewards, and supporting employee well-being through wellness benefits. Together, these efforts build a positive, inclusive culture that encourages long-term commitment and satisfaction.
For instance, Zomato introduced a “Tips for Kitchen Staff” feature, allowing customers to tip after giving a 4- or 5-star rating. The full tip amount (minus taxes) goes to the restaurant, which distributes it among kitchen staff, cleaners, and helpers.
Support well-being with flexibility
The restaurant industry is far from a standard 9-to-5 job. Its fast-paced, high-stress nature can seriously damage employees’ mental and physical health. Recognising that staff have lives beyond the kitchen, flexible work models—such as four or five-day workweeks—can help restore balance. In 2016, Tata Starbucks set a strong example by introducing a five-day workweek for all partners across India.
Advanced scheduling
Besides flexibility, smart scheduling is key to creating a healthier work environment. Restaurant kitchens often face disorganised or last-minute shift planning, leading to overworked teams or staffing gaps. Staff scheduling software can ease this burden by generating shift plans in advance based on employee availability and preferences, helping prevent understaffing and overstaffing, while ensuring seamless daily operations.
Final thoughts
The Indian F&B industry still has significant ground for retaining and nurturing talent. High attrition isn’t just a workforce issue—it’s a symptom of deeper gaps in how employees are treated, supported, and valued.
For the industry to thrive, companies must shift their focus to the people behind the scenes, especially the frontline and kitchen staff. This means investing in their growth, offering flexibility, ensuring fair recognition, and building a workplace culture where everyone feels included and empowered. Retention will turn into long-term loyalty only when employees feel like true stakeholders, not just workers.