The shortage of talent continues to cause headaches in the hospitality and retail industry.
Consumers do this to some extent when traveling, shopping, or eating out during the busy summer season, with long wait times or the removal of certain products or menu items due to supply chain issues. I think I felt it.
Some companies are reducing time and capacity limits. This time it’s not because of COVID-19, but simply because there aren’t enough people to get the job done.
The effects of the shortage are widespread. In California, restaurant chains hosted job fairs to find more workers, but only three applicants. In Alabama, several Chick-fil-Ai locations have been closed due to staff shortages.
Dallas-based, family-owned SSCP Management, Inc. Chris Dharod, president of the company, said:
They run hundreds of restaurants, including Applebee’s and Sonic franchises, and are also franchises of hundreds of Citi’s Pizza and Lloyd’s Hawaiian Fusion brands.
“The really good thing is that we have a lot of business. Some people want to eat with us, but that’s really the biggest thing we need every year,” he says. I did.
He said staff shortages actually began to escalate in the first half of 2021, following shutdowns and capacity limits in 2020.
“Until the beginning of this year, there wasn’t a business where staffing was too much of a problem. And I’m talking to the entire industry. But from around the first quarter of this year, all the restaurants I talk to Owners can use more people to help them and their restaurant team members, “says Dharod.
It’s been even tougher since summer as seasonal employees like students have returned to school.
Delta variants are also exacerbating the situation as more people and workers test positive for the virus.
Many simply left the industry for other career or medical reasons.
“I think the majority are related to having more money out there. People have found a way to support themselves without work or with different types of work,” Darod said. ..
To conclude this year’s endless list of pressures, supply chain issues are pushing up the costs of products, food and raw materials. This puts an additional burden on many industries other than restaurants and retail stores.
“I’ve heard that there aren’t enough truck drivers to distribute, so those truck drivers are the ones who sell the products of restaurants and retail stores. And if there isn’t enough distribution, it’s the supply chain. Can cause problems, “said Darrod.
As many industry experts predict, he believes the labor shortage may continue for some time.
“Unfortunately, I think we have tough staff for at least another six months, and that could last another 12-18 months for us,” he said.
Also, the latest government vaccination orders, including requiring companies with more than 100 employees to have a vaccine or weekly COVID-19 testing, could force more people to leave the workforce. There is also a real concern that there is.
“I think it’s incredibly unfair for them to put it into business to ensure that whatever they want is done,” Darod said. “But we’re still pretty new to this. This mandate just came out last week or so and we’re still investigating and getting a better understanding. It’s definitely another curve ball. . “
Companies such as McDonald’s, Target, and Wal-Mart are offering more wages or new perks to try to hire and retain employees. But according to CNBC, to stay competitive in the labor market, you have to do more than just raise wages.
The extended federal unemployment allowance ended last week, so if those people soon enter the workforce, there is hope for relief.
In any case, Darod said it’s important for businesses to remain immovable, as pandemics continue to bring the unknown.
“Successful businesses are problem solvers. We have a lot of problems every day, every week and every month,” he said. We are ready for that and are confident that more changes will come. “