Abstract
This study used restaurant level data from a casual-dining restaurant chain in the Midwestern United States to examine turnover's relationships with sales, tips and service. Turnover was negatively correlated with sales and service among high-volume restaurants but not among low-volume restaurants. Interestingly, the opposite pattern was observed for turnovers’ relationship with tip percentages—turnover was negatively correlated with tip percentages among low-volume restaurants but not among high-volume restaurants. Plausible explanations for these findings are discussed along with their practical implications.
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