Slammed by COVID, restaurants now face labor shortage
Published 2:00 pm Thursday, April 22, 2021
What seemed like a deal sweeter than one of his signature desserts turned sour for local restaurateur Josh Poling, and it only accentuates the predicament faced by those in his business as they try to emerge from the coronavirus pandemic.
“I offered a $1,000 bonus for any employee who could go 30 days without calling in sick or being late for a shift,” Poling, owner of Hickory & Oak restaurant, said of his strategy to combat the growing labor challenges he and his colleagues face. “I had three guys go for it, and only one got it.”
Poling’s labor woes are all too common for restaurants, which have been buffeted by the pandemic and still aren’t fully reopened.
Ironically, the very public assistance designed to help idled workers is contributing to the problem. Enhanced unemployment benefits and stimulus checks can make staying at home a more attractive option than waiting tables or grilling steaks.
“It’s very frustrating as a private business owner,” Poling said. “It’s heartbreaking that people can make more on unemployment than they can working.”
That reality isn’t lost on Kentucky Agriculture Commissioner Ryan Quarles. The Republican was in Bowling Green on Wednesday as part of his “Restaurant Roundtables” visits with farmers and restaurant owners around the state.
“I’m hearing there’s a shortage in the workforce, particularly with the benefits some people are receiving,” Quarles said during a stop at Western Kentucky University’s Agriculture Expo Center. “With the benefits being handed out by the government now, it’s hard to find people to work.”
Another local restaurateur, Lost River Pizza owner Keith Coffman, called the labor environment a “huge issue” for his industry.
“It’s amazing how many people are checking a box to keep their unemployment going,” Coffman said. “It’s a real problem. The government is incentivizing people to not actively seek employment.”
While the difficulty in finding workers is a business issue for Poling and Coffman, it’s a political talking point for Quarles, who is considered a rising star in the GOP and a possible candidate for governor in 2023.
Openly critical of many of Gov. Andy Beshear’s executive orders related to the pandemic, Quarles said the governor’s target of lifting capacity limits on restaurants and other businesses once 2.5 million Kentuckians have been vaccinated isn’t good enough.
“We need a reopening date,” he said. “It’s time to eat out and support these local businesses.”
National Restaurant Association statistics suggest that such support is needed. A recent NRA survey said 110,000 restaurants and bars nationally have either closed permanently or long-term during the pandemic.
Nearly 90% of full-service restaurants in the survey reported declines in business, with revenue falling 36% on average.
Poling has seen those struggles firsthand, particularly among smaller restaurants that are hamstrung by the current 60% capacity limit.
“Sixty percent is so arbitrary,” Poling said. “I have enough square footage to allow me to space people out, so it’s a little easier to make it through this.”
While government help like the enhanced unemployment benefits has been a hindrance for restaurateurs like Poling and Coffman, both are encouraged by another government program: the Restaurant Revitalization Fund that was introduced as part of the American Rescue Plan approved by Congress last month.
That fund is providing $28.6 billion that will be awarded through the U.S. Small Business Administration to restaurants and bars that suffered revenue losses related to the pandemic.
“It’s a lifeline for restaurants,” said Poling, who said he plans to apply for the assistance.
Coffman said a new drive-through window and other strategies have helped Lost River Pizza survive, but he welcomes the federal assistance.
“I’m going to pursue it,” he said. “Other industries have been given all kinds of help from the government. I’m excited to be able to get some assistance.”
Mark Lord, district director for U.S. Rep. Brett Guthrie’s Bowling Green office, was at Wednesday’s meeting and shared that the SBA now has information online about the Restaurant Revitalization Fund.
Information can be found at the restaurants.sba.gov website.
– Follow business reporter Don Sergent on Twitter @BGDNbusiness or visit bgdailynews.com.