By Emily Mousso

Faculty Mentor: Alexandria Dunn

Abstract

This project examines the underlying causes of high employee and management turnover in the restaurant industry, with a specific focus on Mellow Mushroom in Fredericksburg, Virginia. Drawing on interviews with the current general manager and staff, as well as existing industry research, the study identifies leadership instability, inadequate training systems, and high workplace stress as the primary drivers of turnover. The restaurant experienced a 100 percent management turnover rate within the past year, contributing to inconsistent standards, low employee morale, and declining customer satisfaction. Findings reveal that the absence of structured onboarding, unclear expectations, and reactive management practices created a cycle of dissatisfaction and employee departure. Additionally, the financial and reputational impacts of turnover were significant, including operational losses and reduced customer retention. To address these challenges, the project recommends implementing a value-driven leadership model grounded in transformational and servant leadership principles, establishing structured training and onboarding programs, fostering a supportive workplace culture, and addressing management burnout. The study concludes that improving leadership consistency and investing in employee development are critical to reducing turnover, enhancing organizational stability, and supporting long-term financial recovery in restaurant operations.