The latest 2025 H2 Insights Report from Pineapple, in partnership with Sona, has uncovered one of the clearest data signals the sector has ever seen – for the first time evidencing that workforce stability isn’t just an HR metric, it’s a commercial driver.
We sat down with Philip Eeles, Co-founder of Pineapple, to unpack the findings, what they mean in practice, and how operators can act on them today.
What was the single most important finding from this report?
The standout insight is the strength of the relationship between staff churn and revenue performance, with a clear threshold emerging at 66% annual turnover.
What we’ve been able to show, for the first time with real industry data, is that high employee turnover in the first half of the year has a measurable impact on a brand’s ability to capture seasonal sales in the second half of the year. Operators with stable teams saw strong growth during peak trading, while those with higher churn actually saw revenue decline over the same period.
That’s a fundamental shift. Churn has always been accepted as part of hospitality, but this reframes it as a commercial risk, not just an operational challenge.
Why does early-year churn have such a delayed impact on performance?
It comes down to what we describe as “delayed operational drag.” When you experience high churn in Q1 and Q2, you’re constantly recruiting, onboarding and training. That cost isn’t just financial, it’s operational. By the time you reach peak trading periods in Q3 and Q4, those teams are often less experienced, less cohesive, and under more pressure. That shows up in slower service, reduced upsell, and ultimately missed revenue opportunities. So, while the impact isn’t immediate, it compounds over time and becomes most visible when it matters most.
The report highlights a ‘Q2 dip’ and ‘Q3 retention problem’ – what’s driving this pattern?
There’s a very clear seasonal rhythm emerging in the data. In Q2 of 2025, we see labour costs peak at around 35%, driven largely by wage increases and inflationary pressure. At the same time, engagement scores dip.
Then in Q3, we see the consequences of that pressure play out, with turnover peaking at just over 75% on a 12-month rolling basis. What’s interesting is how interconnected these factors are. Cost pressure, engagement and retention aren’t separate issues, they’re part of the same system.
One surprising finding was the lack of correlation between Employee Net Promoter Score (eNPS) and retention. How should operators interpret that?
It challenges a long-held assumption. There’s been a belief that if you improve engagement scores, retention will follow. But at a macro level, the data doesn’t support that. That doesn’t mean engagement isn’t important, far from it. But it suggests that a single, point-in-time metric like eNPS doesn’t fully capture what’s driving people to stay or leave.
If eNPS isn’t a reliable predictor of retention, how should operators be measuring engagement more effectively?
It comes down to moving away from treating engagement as a single data point and instead understanding it as something more continuous and nuanced.
eNPS can still play a role, but it should be seen as a pulse check rather than a definitive measure. On its own, it doesn’t tell you why people feel the way they do, or what’s likely to happen next.
What we’re seeing from operators is a shift towards more continuous listening, looking at patterns like absence, team stability and manager behaviour alongside survey data.
For example, we partner with Flat Iron, a British steak restaurant operator and they emphasise the importance of viewing engagement as a cycle rather than a snapshot. eNPS is used as a starting point, but the focus is on what sits behind it: regular conversations with teams, understanding the drivers of absence, and identifying pressure points early.
I had a great conversation with their Head of People, Gina Knight who highlighted that absence can often be an early warning sign. If teams are stretched or under pressure, it tends to show up in morale before it translates into turnover. That’s where operators need to dig deeper, not just measure engagement, but understand it.
How can operators use the report in practice?
The most effective way to use the Pineapple Insights Report is as a decision-making tool, not just a benchmarking exercise. Firstly, it acts as a strategic lens.
Operators can identify which findings are most relevant to their own business and use that to prioritise where to focus, whether that’s retention, labour cost control or engagement.
Secondly, it provides a benchmark. Understanding where you sit against the wider market helps contextualise performance and highlight areas that may need attention.
And finally, it supports better conversations at board level. Having industry-backed data allows people leaders to move beyond instinct and anecdote, and instead bring evidence into discussions around investment, resource and long-term people strategy. In a sector that can often be reactive, having that external reference point helps operators take a step back and make more deliberate, informed decisions.
What role does technology and AI play in helping operators act on these insights?
This is where things get really interesting. The industry isn’t short of data, it’s often overwhelmed by it. The challenge is turning that data into something actionable.
What we’re seeing, particularly with platforms like Sona, is the ability to surface patterns much earlier, whether that’s emerging retention risks, absence trends, or operational pressure points. In our conversations with Sona, a consistent theme is that it’s not about having more data, it’s about using it intelligently, connecting the dots and enabling better decisions in real time.
If operators take one action from this report, what should it be?
Focus on stability early in the year. The data shows a very clear threshold, if you can keep annual churn below roughly two-thirds, you significantly improve your chances of capturing seasonal revenue uplift. That means investing in retention, training, and workforce planning before peak trading begins, not reacting once you’re already in it. Because by that point, it’s often too late.
Read the full report here: Hospitality People Insights Report H2/2025.
