52% Turnover Reduction Across 8 Locations

The Challenge

Running 8 quick-service restaurant locations means managing a workforce that the industry treats as disposable. This franchise group's owner refused to accept that — but the numbers were brutal:

• Annual turnover exceeding 130% — the industry average, and every departure cost $3,500-$5,000 in recruiting, training, and lost productivity
• No affordable benefits option — traditional group health plans were priced for corporate employees, not hourly restaurant workers
• Recruitment disadvantage — competing for the same labor pool as companies that could offer full benefits packages
• Absenteeism from untreated health issues — workers going to the ER for strep throat because they had no primary care access

The owner's frustration: "I wanted to do the right thing for my people, but every benefits broker I talked to showed me plans that would've cost more than my food costs."

The Solution

Optiv Health designed a Section 125 supplemental plan specifically for the franchise model — affordable for the employer, valuable for hourly workers, and simple to administer across multiple locations.

• Low-cost supplemental coverage that stacked with or stood alone — many employees had no prior coverage at all
• Free prescriptions — antibiotics, allergy meds, chronic condition medications at $0 copay
• 24/7 telehealth — a doctor's visit without missing a shift, accessible from a phone
• Multi-location enrollment — a single online portal handled all 8 locations, with managers trained in 30 minutes
• Pre-tax deductions — FICA savings offset the cost of offering the plan

The Results

Financial Impact

Metric	Before	After (12 Mo.)	Impact
Employee Turnover	130%	62%	-52%
Turnover Cost Savings	$650K/yr	$310K/yr	-$340K
FICA Tax Savings	—	$11,016/yr	New
Net Annual Benefit	—	—	$86,000+

Workforce Impact

• 78% of employees enrolled — remarkable for an hourly workforce that typically ignores benefits paperwork
• Absenteeism down 35% — telehealth meant employees handled health issues without missing shifts
• Hiring became easier — "We offer health benefits" became a real differentiator in job postings
• Manager satisfaction up — less time spent recruiting and training replacements, more time running restaurants

"For the first time in 12 years of owning restaurants, I can say we offer real health benefits. My team knows I care about them, and they're staying. The ROI isn't even close — the turnover savings alone dwarf the cost of the plan."

— Franchise Owner