Lower Turnover at Fast Food Chain

Steak 'n Shake is trying to reduce its turnover, with an eye toward saving several million dollars and increasing the rate of new-store openings. CEO Peter Dunn said in a conference call last week that turnover of frontline employees, which once stood at about 220 percent, is now down to 148 percent. It's partly due, he says, to the fact that turnover measures are linked to management incentives. Also, he says, Steak n Shake is listening to--and making improvements based on--employee feedback. Management turnover is about 29 percent, and general manager turnover 16 percent. Customer satisfaction is up and drive-through times are down.