Attrition in retail and hospitality is not a problem that effort alone will solve. It is structural. According to CIPD analysis of ONS data, hospitality has a 52% annual attrition rate (more than one and a half times the UK average of 34%). In bars and clubs the figure reaches 47%. Forty per cent of hospitality employees move to another employer within 12 months. Average median tenure across the sector is three years. That is the second lowest of any UK industry.
The demographic profile makes this both more understandable and more important to address properly. Young people aged 16 to 24 make up just 10% of the UK workforce. They account for 50% of waiting staff, 48% of bar staff and 48% of baristas. Early talent recruitment is not a specialist programme for retail and hospitality. It is the primary route through which the workforce is renewed.
The cost is significant and largely uncalculated. Oxford Economics and Unum research found that replacing a lost employee costs UK businesses an average of £30,614, including direct replacement, onboarding and productivity loss. In a sector where replacement cycles are frequent and seasonal, this becomes a cost that most finance directors have stopped calculating because they have stopped noticing it.
The government’s expansion of foundation apprenticeships into retail and hospitality (part of a £725 million investment in the apprenticeships system announced in December 2025) creates a formal route to build more committed, better-developed early talent. Apprenticeship recruitment is more complex than direct hire: eligibility requirements, longer timelines, candidate engagement across months rather than weeks.
Perception compounds everything. Many young people do not see retail or hospitality as a career. They see it as a job. The employers who change that story earliest, and give candidates a genuine picture of what a career in the sector involves, will build the pipeline that others are still waiting for.