The restaurant jobs picture, like that in other industries, is proving to be a challenge to business owners as summer and our post-pandemic recovery is on the horizon. The “now hiring” signs and web postings appear to be going unanswered. There is no lack of theories as to why. While there is a shortage of staff, there are also other factors at work. As always, the truth is in the middle.
Many restaurateurs will acknowledge the problem, but very few will speak on the record. Richard Sardella, longtime restaurant owner and proprietor of Sardella’s Italian Ristorante, Imbriglio’s Pizzeria Napoletana and Marina Café & Pub, and former Newport mayor, did. Sardella says that it is a difficult and detailed issue. His staff was out of work when restaurants were among the first to be closed down. As he was able to reopen partially, first for takeout then for outdoor dining, he was able to bring employees back. With 41 years of business under his belt, Sardella and partner Patrick Fitzgerald were in a good position. Many staffers have been on board at Sardella’s restaurants for many years. Such long-standing employees are more likely to stay put.
There have been reports statewide of employees being aggressively solicited by competitors. Depending on individual circumstances, this action may or may not be to the advantage of either the business making the offer or the staffer. It would appear to contradict the point of view being expressed by state employment specialists, as well as those in places such as R.I. Commerce Corp. Those officials are encouraging people from outside the restaurant and food service fields to apply. Also, the announcement in late April that the R.I. Department of Labor and Training would again require those receiving unemployment benefits to document that they are available and actively searching for work. This is resulting in a trickle of candidates and interviews.
The U.S. Small Business Administration has been accepting applications for grants from the Restaurant Revitalization Fund. For the first three weeks only, applications from restaurants owned by women, veterans and “socially and economically disadvantaged” applicants were processed and paid out. Although any restaurant can apply, some say restaurants that remained open during the pandemic – that is, never completely closed their doors – have been informed they are not eligible for such grants.
Another business owner speaking on the record – Ted Tomlinsen, who owns a restaurant and pub in Colchester, Vt. – noted that it would have been to his advantage to close his doors, furlough his staff and then come back, funded by the government grant. Upon reflection, his analysis is that if he had done that, much of his staff would not have returned. As it is, he lost one employee out of a staff of 35 to an offer by a competitor.
It is interesting to note the response to the Restaurant Revitalization Fund by a San Francisco restaurateur who told The Associated Press that the grant would allow her to go back to February 2020 and apply the funds to help pay down debt and catch up on past due rent. What makes this interesting from a Rhode Island standpoint is that the 1% meal and beverage tax collections for the month of February 2021 declined only 7.4% from February 2020 because the pandemic restrictions happened. Time will tell if the pre-pandemic period was as good business-wise as we want to remember.
Bruce Newbury’s radio show and podcast, “Dining Out with Bruce Newbury,” is broadcast on WADK 1540 AM and several radio stations throughout New England. Email him at Bruce@BruceNewbury.com.
