Independent restaurants are being crushed by the labor shortage. They're raising prices, cutting opening hours, and even closing down for good.

Asia's Tech News Daily

© Álex Cámara/NurPhoto via Getty Image Staff have been leaving the industry in search of better wages, benefits, and working conditions. Álex Cámara/NurPhoto via Getty Image

  • Independent restaurants are struggling to operate because they can’t find enough staff.
  • Owners are slashing opening hours, raising prices, and returning to the kitchens themselves.
  • One said he closed his restaurant after larger companies poached staff with offers of higher wages.

Independent restaurants are being crushed by the labor shortage.

Their desperate owners are returning to the kitchens themselves and say they’re working longer hours than ever.

They’re raising menu prices, cutting opening hours, and offering higher wages and more benefits in a bid to stay open – but for some, the labor shortage has become too much, and they’ve had to close.

Government data and business-owner polls suggest that the restaurant industry is being hardest hit by the labor shortage.

In a recent poll by Alignable of small and medium-sized business owners, 85% of restaurant owners said it was “very difficult” to find staff. Only 3% said they weren’t struggling to hire.

Staff have been leaving the industry in search of better wages, benefits, and working conditions.

While restaurant chains like McDonald’s, Starbucks, and Chipotle have been able to hike wages – in many cases to $15 an hour and more – and offer hiring bonuses and education benefits to attract more staff, independent restaurants say this is much harder for them to afford.

Insider spoke to many restaurants across the US who said that they’d raised wages, but that staff still earned less than $15 an hour, minus tips.

In a poll ran by Alignable between September and October, 61% of independent restaurant owners said that they expected large companies to make their hiring process harder in the fourth quarter by offering higher wages they couldn’t compete with.

Alignable CEO Eric Grove said that only 15% of small restaurants told him they’d been able to provide extra benefits to their staff, such as hiring bonuses, college tuition reimbursement, healthcare, flexible work schedules, and paid time off.

“Most of the time, larger restaurants (or companies outside of the restaurant business entirely) are pulling candidates away from smaller restaurants with higher wages and several of those perks,” Grove told Insider in an email.

Joseph Devor, owner of Joey’s Chicken Shack in Pennsylvania, told Insider he’d raised wages from $9 to between $10 and $12 an hour.

“I think [staff] deserve more,” he said. “It’s just difficult because we started with very little and we have our bills to pay.”

Joey’s Chicken Shack isn’t alone. Restaurants are facing mounting wages and ingredients costs, which are cutting into their profit margins. Half of the owners of small and medium-sized business restaurants said in an Alignable poll that they couldn’t pay their rent in full and on time in September.

To avoid soaring costs, some restaurants are closing earlier or shutting their dining rooms. Robin LaForge decided to shut his restaurant, Cheniere Shack in West Monroe, Louisiana, for two days a week and close it an hour earlier on the days it is open after staffing fell by roughly three-quarters. Mirna McCormack, who owns Korner Cafe in Lewisville, Texas, is closing it around six hours earlier most days.

Some restaurants are also charging customers more. Devor, for example, has put prices up every month since May because of growing labor and ingredients costs.

He said he wanted to raise prices even further, but was worried that it would deter customers. McCormack similarly said she thought her cafe’s retired clientele would be put off by price hikes.

Because of the labor shortage, restaurant owners have also been spending more time cooking or serving customers themselves.

McCormack said she had started working 12-hour shifts most days before ultimately slashing the cafe’s opening hours. LaForge, meanwhile, said he was now spending more time doing prep work in the kitchen and had to restructure his menu because he didn’t have as much time to think up specials. He added that his wife, who’s undergoing cancer treatment, was having to help out.

Some restaurants have ultimately crumbled under the pressures of the tight labor market.

Taco Crush in McKinney, Texas, closed down in September after being left with just three kitchen workers. Owner Paul Horton told Insider that larger companies had poached some of his staff with offers of much higher wages or benefits.

“Being a small, independent business, I can’t compete with wages on bigger companies, let alone offer them any kind of benefits,” he said.

Expanded Coverage Module: what-is-the-labor-shortage-and-how-long-will-it-lastRead the original article on Business Insider

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

Third case of Omicron Covid variant detected in UK

A third case of the Omicron Covid variant has been confirmed in the UK, officials have said, as Sajid Javid insisted the government is “nowhere near” having to reimpose mandatory ... Read more »

DJ Zinhle hits the mark with new release 'Siyabonga'

© Provided by Independent Online (IOL) DJ Zinhle has finally released her collaboration with award-winning duo Black Motion, amapiano pioneer Kabza De Small and vocalist Nokwazi. Zinhle’s first release of ... Read more »

BuCor firm on securing Bilibid reservation

© Jesse Bustos BuCor firm on securing Bilibid reservation MANILA, Philippines — The Bureau of Corrections (BuCor) yesterday stood pat on its decision to build a wall along a road in ... Read more »

The West Block – Episode 5, Season 11

© Global News THE WEST BLOCK Episode 5, Season 11 Sunday, November 28, 2021 Host: Mercedes Stephenson Guests: General Wayne Eyre, Chief of the Defence Staff Jagmeet Singh, NDP Leader  ... Read more »

As COVID-19 strains nurses, Singh says feds must ease barriers for those trained abroad

NDP Leader Jagmeet Singh says Ottawa must make it easier for nurses trained abroad to contribute to the fight against COVID-19 in Canada, as the virus continues to strain health-care ... Read more »

Omicron: Vaccines May Partially Work Against New Variant, Ex-ICMR Scientist Dr Gangakhedkar Says

© Provided by News18 Omicron: Vaccines May Partially Work Against New Variant, Ex-ICMR Scientist Dr Gangakhedkar Says Amid growing concerns over Omicron, former Indian Council of Medical Research (ICMR) scientist ... Read more »

Delhi CM urges PM Modi to stop flights from Omicron-affected countries

Delhi CM urges PM Modi to stop flights from Omicron-affected countries Delhi Chief Minister Arvind Kejriwal on Sunday appealed to Prime Minister Narendra Modi to put a stop to incoming ... Read more »

Boebert apologizes to Muslim community after Ilhan Omar comments: 'I have reached out to her'

Rep. Lauren Boebert, R-Colo., on Friday apologized to the Muslim community for comments she made about Rep. Ilhan Omar, D-Minn., that many deemed Islamophobic. “I apologize to anyone in the ... Read more »

Rep. Lauren Boebert silent on criticism after she said Pete Buttigieg was trying to 'chest feed' at same event she implied Rep. Ilhan Omar was a terrorist

Rep. Lauren Boebert speaks during a press conference at the U.S. Capitol June 23, 2021 in Washington, DC.Win McNamee/Getty Images GOP Rep. Lauren Boebert has so far not responded to ... Read more »

Police granted more time to question man over woman's disappearance

Detectives investigating the disappearance of a mother of two have been granted more time to question a man arrested on suspicion of her murder. The 40-year-old was arrested on Thursday ... Read more »

Man and woman found stabbed to death in north London

Two people have been stabbed to death in north London. Metropolitan Police officers and paramedics were called to Mayes Road in Wood Green shortly after 9.30am on Sunday after concerns ... Read more »

Omar seeks action over House colleague's remarks on Muslims

1 / 2Omar-Boebert-Anti-Muslim RemarksFILE – Rep. Lauren Boebert, R-Colo., speaks at a news conference held by members of the House Freedom Caucus on Capitol Hill in Washington, July 29, 2021. ... Read more »

Dutch impose new tighter lockdown amid spiking infections

1 / 10APTOPIX Virus Outbreak NetherlandsA lone girl waits for a tram in a near-deserted street full of closed restaurants, bars and shop under a partial lockdown in Amsterdam, Netherlands, ... Read more »

Bengaluru and Blasters end equals in a thrilling contest

© Provided by The Statesman Bengaluru and Blasters end equals in a thrilling contest  In a matter of four minutes, Ashique Kuruniyan turned hero to villain as his goals at ... Read more »

When faultlines are too exposed, there's no easy way to rebuild after an earthquake

There was a moment of levity on Friday, in the midst of an otherwise sombre unveiling of the ECB’s new anti-racism action plan, when one senior journalist – caught on ... Read more »

The Big Picture, 28 November 2021, Written Update: Ashiyana advises girls to be strong

© Provided by Pinkvilla In today’s episode, we saw Shagir was thinking and Ranveer questions if he can give the answer to this question. Ranveer again announces that this question ... Read more »

Japanese film 'Ring Wandering' get Golden Peacock at 52nd IFFI

© IANS Ring Wandering Panaji, Nov 28 (IANS) Director Masakazu Kaneko’s Japanese film “Ring Wandering” (“Ringu Wandaringu”) took the top honour on the concluding day of the 52nd International Film ... Read more »

India vs New Zealand: Pressure mounts on Ajinkya Rahane even as team management continues to back him

© Provided by Firstpost India vs New Zealand: Pressure mounts on Ajinkya Rahane even as team management continues to back him Ajinkya Rahane, the stand-in Test captain, is nine wickets ... Read more »

Indian women's football team aims better show against Chile

© Provided by The Times of India It’s another day and another top-class challenge awaits the Indian women as they take on Chile in their second match of the Torneio ... Read more »

Oura Ring – the ultimate health wearable

© Provided by Independent Online (IOL) Among its accomplishments to date, Oura (which is pronounced like “aura”) deserves a spot on any list of crowdfunding projects that have turned into ... Read more »

Artists hope 1MX Dubai & Manila 2021 shows bring back sense of normalcy

© Provided by PhilStar Global Artists hope 1MX Dubai & Manila 2021 shows bring back sense of normalcy MANILA, Philippines — Peace. That’s the word Moira dela Torre used to ... Read more »

Derek's mom on son's marriage to Ellen: ‘My prayers were answered'

© Provided by PhilStar Global Derek’s mom on son’s marriage to Ellen: ‘My prayers were answered’ Several showbiz couples have tied the knot lately, such as Carla Abellana and Tom ... Read more »

Czech President appoints new Prime Minister from a glass box

When the Czech President Milos Zeman formally appointed Petr Fiala as the country’s new Prime Minister on Sunday, he did so sitting inside an acrylic glass box accompanied by health ... Read more »

Wealthy western countries cannot wash their hands of refugees

Photograph: BelTA/Reuters Instead of allowing a small group of rich countries to close off their borders, the international community must develop an inclusive and equitable system, writes Titus Alexander The ... Read more »

The heavenly comfort of truffle crisps

Comfort eating | Sex or food | Homelessness | Fountain pens | Staircases I too am disappointed that Grace Dent’s guests were not wooed by her comfort eats (They told ... Read more »

Midlands woman went on a shopping spree with dead person's credit card, SC cops say

A Midlands woman was arrested on suspicion of stealing a dead person’s credit card and using it on a shopping spree, the Sumter County Sheriff’s Office said. Kimberly Sue Bowers ... Read more »

Sentences must be decided by the judges

Photograph: Andrew Matthews/PA With regard to ‘Harper’s law’, Malcolm Fowler is against hobbling the court’s discretion by striving to ram square pegs into round holes Zoe Williams is right about ... Read more »

‘He's missing': anxious wait in Calais camps for news on Channel victims

Photograph: David Levene/The Guardian On Saturday Gharib Ahmed spent five hours outside the police station in Calais, desperately waiting for news. “It was so cold. There was no answer,” he ... Read more »

Rising cost of Christmas trees

Rising cost of Christmas trees Read more »

Role models and why young people turn to crime

Don Macdonald points to the cuts in youth services and Tom Challenor wonders if 007 is fit for the job In my 25 years of working with young offenders and ... Read more »

Smitten Gemma Collins beams as she cosies up to boyfriend Rami Hawash after sparking engagement rumours

GEMMA Collins packed on the PDA with boyfriend Rami Hawash in a sweet social media post after sparking engagement rumours. The 40-year-old took to Instagram to share a cute video of ... Read more »

Asda customer slams embarrassing till mix-up and warns other shoppers to get a receipt

AN Asda shopper has warned customers to get a till receipt at self-service check out machines after being “chased by two members of staff”. Chris Morris said he was left ... Read more »

Drug lord El Mencho's wife is ‘key to his BILLIONS' and her arrest could bring his entire cartel says DEA legend

DRUG Lord El Mencho’s wife is a “financial genius” who holds the key to his empire and her arrest could bring him down, says a former Drug Enforcement Agency chief ... Read more »

Beyonce's Makeup Artist Divulged What Liquid Lipstick She "Always" Wears & It's Only $5 Right Now

© Elizabeth Goodenough/Everett Collection. While we love our skincare routines, there’s no denying how fun it is to apply your daily makeup routine. And one of the most fun parts ... Read more »

Jennifer Lopez's Go-To Luxurious Leggings Are On Sale Right Now — & We Don't Know How Long They'll Stay in Stock

© Elizabeth Goodenough/Everett Collection. No workout look is complete without a stylish pair of leggings. Let’s be real, leggings were sent from heaven — they’re both comfortable and make your ... Read more »

Bürgerliche drehen Staatsratswahlen – lange Gesichter bei den Linken

In Freiburg erkämpft sich die SVP auf Kosten der SP einen Regierungssitz. Die Grünen kehren mit Sylvie Bonvin-Bossens in die Kantonsregierung zurück. © Foto: Jean-Christophe Bott (Keystone) Sie haben die ... Read more »

Laut Keller-Sutter bleibt Unabhängigkeit der Gerichte "essenziell"

© KEYSTONE/PETER SCHNEIDER Mit dem Nein zur Justizinitiative bleibt laut Bundesrätin Karin Keller-Sutter die verfassungsmässige Ordnung von 1848 bestehen und damit demokratische Legitimation von Bundesrichterinnen und Bundesrichtern. “Die Unabhängigkeit der ... Read more »

Sandra Mason löst Königin Elizabeth II. ab

Die Karibikinsel verwandelt sich von einer konstitutionellen Monarchie in eine Republik. Damit hat Ihre Majestät Königin Elizabeth II. als Monarchin des Landes ausgedient. © Foto: Getty Images Queen Elizabeth II ... Read more »

Trade group warns United Kingdom can face alcohol shortage as Christmas nears

© Provided by WION The Wine and Spirit Trade Association has warned that the UK could face an alcohol shortage in the run-up to Christmas. The association’s CEO Miles Beale ... Read more »

Italy reports 47 coronavirus deaths on Sunday, 12,932 new cases

COVID-19 pandemic in Milan MILAN (Reuters) – Italy reported 47 coronavirus-related deaths on Sunday, against 90 the day before, the health ministry said, while the daily tally of new infections ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic