OT: Restaurants Reducing Capacity

[Joey Bags]

A number of our favorite restaurants in central jersey are starting to significantly limit capacity to at or below 20% due to a lack of workers. A few of these places where we’re friendly with the owners have told us if the situation doesn’t improve by June, they’ll be done by July.

I was shocked as virus-wise we’ve turned the corner. Did some research into why this is an issue and it seems like no one has an answer as to why no one wants to work. The economist basically debunked the theory that it’s due to unemployment extensions.

Anyone else have any insight into this? Seems like the industry is in huge trouble if hiring doesn’t pick up.

 

[bryanjints]

This was a problem before covid but people were stuck in the pattern of needing that job. So many of the workforce of the industry has been the "extra" job. Then you add in the constant grind and the burnout that people have.

The extra job people used to have they have adapted and learned to live without. The burnout people are finding work in other fields.


There was a bubble as well in which high quality workers were in short supply so there wad constant turnover. The uncertainty of the previous year slow the rate of turnover.

 

[applesktrack]

A lot of the people who would waitress/waiter, bartender, or line cook jobs are making too much money on unemployment and don't want to work.

 

[e5fdny]

I mentioned this the other day to @knightfan7 about a local place both of us know.

My Sister and brother-in-law had some friends over from PA and they went to the place in question, even with a small crowd, they had trouble handling the amount of guests that were there.

 

[asgot]

A number of our favorite restaurants in central jersey are starting to significantly limit capacity to at or below 20% due to a lack of workers. A few of these places where we’re friendly with the owners have told us if the situation doesn’t improve by June, they’ll be done by July.

I was shocked as virus-wise we’ve turned the corner. Did some research into why this is an issue and it seems like no one has an answer as to why no one wants to work. The economist basically debunked the theory that it’s due to unemployment extensions.

Anyone else have any insight into this? Seems like the industry is in huge trouble if hiring doesn’t pick up.

The pay is bad and the people are generally ok but there is little support and no security.

 

[asgot]

A lot of the people who would waitress/waiter, bartender, or line cook jobs are making too much money on unemployment and don't want to work.

Isn’t that part of the issue that they make more on unemployment than people are willing to pay them. Isn’t this the free market system at work? If you need workers pay them more. I bet that if you offered them more on terms of pay you would get more applicants. The restaurant my kids work at have no such issues as they are pretty much at full capacity and they just opened the outside but they pay there servers and front of the house staff pretty well

 

[knightfan7]

The pay is bad and the people are generally ok but there is little support and no security.

I saw an interview with a franchisee for a chain. He said they're considering offering "signing bonuses".

 

[CollegeSenior]

It’s a story that has been covered.

It’s always been hard work and long hours for low pay. Then COVID came and there was no job security. Some workers found better jobs in other industries. Some returned to their home countries. Small restaurants are losing employees to larger and more prestigious ones. Lots of factors.

 

[mdk02]

A number of our favorite restaurants in central jersey are starting to significantly limit capacity to at or below 20% due to a lack of workers. A few of these places where we’re friendly with the owners have told us if the situation doesn’t improve by June, they’ll be done by July.

I was shocked as virus-wise we’ve turned the corner. Did some research into why this is an issue and it seems like no one has an answer as to why no one wants to work. The economist basically debunked the theory that it’s due to unemployment extensions.

Anyone else have any insight into this? Seems like the industry is in huge trouble if hiring doesn’t pick up.

Who was the economist?

 

[applesktrack]

Isn’t that part of the issue that they make more on unemployment than people are willing to pay them. Isn’t this the free market system at work? If you need workers pay them more. I bet that if you offered them more on terms of pay you would get more applicants. The restaurant my kids work at have no such issues as they are pretty much at full capacity and they just opened the outside but they pay there servers and front of the house staff pretty well

It's the extra 600 a week that's doing it. Its the bonus unemployment.

 

[Jtung230]

Guess the wall is working.

 

[knightfan7]

It's the extra 600 a week that's doing it. Its the bonus unemployment.

It's $300.

 

[asgot]

It's the extra 600 a week that's doing it. Its the bonus unemployment.

I believe it has gone down to $300. They would find ways if they really needed workers. seems like they want to hire people at the pre pandemic slave wages. If you have ever waited tables on a Monday or Tuesday and work 7 or 8 hours for $40 bucks you might understand why some people are unwilling to go back to that.

 

[rurahrah000]

It's the extra 600 a week that's doing it. Its the bonus unemployment.

That’s something Trump and the republicans passed last year.

 

[knightfan7]

I believe it has gone down to $300. They would find ways if they really needed workers. seems like they want to hire people at the pre pandemic slave wages. If you have ever waited tables on a Monday or Tuesday and work 7 or 8 hours for $40 bucks you might understand why some people are unwilling to go back to that.

I think it's been $300 since September

 

[DHajekRC84]

I think it's been $300 since September

I believe thats correct and they just extended it to September. SMH.

 

[anon_ivydyf0amkzay]

If the shut down of restaurants had not been so draconian, perhaps many could have kept their jobs. Two of my most visited restaurants when I travel to Rhode Island are gone for good. It did not have to be that way.

 

[RUschool]

I believe it has gone down to $300. They would find ways if they really needed workers. seems like they want to hire people at the pre pandemic slave wages. If you have ever waited tables on a Monday or Tuesday and work 7 or 8 hours for $40 bucks you might understand why some people are unwilling to go back to that.

Just met an old acquaintance last night and I knew he was looking for a job. I asked him if he found one, he did at 30% less than his previous job and no benefits, a contractor. Companies always trying to squeeze the most out the employees. He will be looking shortly for a new job. I know some restaurants workers that were scared of losing their jobs but when they disappeared they needed to find new jobs and couldn’t wait till the old ones to come back.I found one at a new establishment and asked if she was going back to the old place, she asked why should she?

The restaurant owners and manager think they have been kind to their help but the help doesn’t think so. Owners think the waiters/waitresses should feel lucky they have a job.

 

[DHajekRC84]

I believe it has gone down to $300. They would find ways if they really needed workers. seems like they want to hire people at the pre pandemic slave wages. If you have ever waited tables on a Monday or Tuesday and work 7 or 8 hours for $40 bucks you might understand why some people are unwilling to go back to that.

Aren't most operations that can't really bring in a crowd closed on mons and tues?
I'd suggest then just pay workers a flat rate, raise prices to cover, and eliminate tips. Then they can complain when they have to report all income for tax reasons. Works for me.

 

[DHajekRC84]

If the shut down of restaurants had not been so draconian, perhaps many could have kept their jobs. Two of my most visited restaurants when I travel to Rhode Island are gone for good. It did not have to be that way.

LOOONG time Jakes in Flemington closed. Applebees in Flemington closed. TGIFridays closed. AND a few more.

 

[knightfan7]

Aren't most operations that can't really bring in a crowd closed on mons and tues?
I'd suggest then just pay workers a flat rate, raise prices to cover, and eliminate tips. Then they can complain when they have to report all income for tax reasons. Works for me.

Glad it works for you. When are you applying at Friday's?

 

[DHajekRC84]

Glad it works for you. When are you applying at Friday's?

Why should I? I already worked my *** off to get a degree so I could work my *** off to earn a decent living.
My daughter worked there for 3 years while in school. My niece works at one in Princeton.
And what's wrong just paying the higher and eliminating the tips which guarantees income per hour like all other jobs? Can't have it both ways.

 

[mdk02]

It's $300.

Correct. And it's on top of regular unemployment, which varies widely between states so it's wrong to draw a nationwide conclusion. There is also the factor that some of the potential hires/rehires have kids who are not in school.

I'd just like to know who the economist was who came to, in my mind, a fairly simplistic overgeneraldized conclusion.

 

[tom1944]

My nephew just opened a bakery/ coffee shop with his wife and business has been so good they hired 2 additional employees

Had no trouble getting qualified people

 

[Joey Bags]

Who was the economist?

The journal publication did a piece on it last month

 

[RUschool]

I also noticed that the restaurants have increased their prices and even cut their portions. Do they think the customers don’t notice it or am I the only one noticing these changes?

 

[mdk02]

The journal publication did a piece on it last month

WSJ?

 

[knightfan7]

Why should I? I already worked my *** off to get a degree so I could work my *** off to earn a decent living.
My daughter worked there for 3 years while in school. My niece works at one in Princeton.
And what's wrong just paying the higher and eliminating the tips which guarantees income per hour like all other jobs? Can't have it both ways.

I'll send you a medal.

If it was so easy it would have been done a long time ago. Most employers would never go for it. They want the employees working for tips because the believe they'll give better service.

 

[knightfan7]

My nephew just opened a bakery/ coffee shop with his wife and business has been so good they hired 2 additional employees

Had no trouble getting qualified people

That's nice to hear, especially these days.

 

[RU19931]

Who was the economist?

Dr. Fauci

 

[RUschool]

This was a problem before covid but people were stuck in the pattern of needing that job. So many of the workforce of the industry has been the "extra" job. Then you add in the constant grind and the burnout that people have.

The extra job people used to have they have adapted and learned to live without. The burnout people are finding work in other fields.


There was a bubble as well in which high quality workers were in short supply so there wad constant turnover. The uncertainty of the previous year slow the rate of turnover.

We deported a lot of the illegals under Trump back to their country so there‘s a shortage of workers. Kids under 21 move on with life and new phase of life, restaurant work not suppose to life career. Risky job possibly getting COVID. Families are moving out of NJ to Texas or Florida. Forgot, people retire.

They also found it easier to work at Uber/ Lyft or another gig job.

 

[Joey Bags]

WSJ?

No, The Economist

https://www.economist.com/

 

[MADHAT1]

If it was so easy it would have been done a long time ago. Most employers would never go for it. They want the employees working for tips because the believe they'll give better service.

The low hourly wages waiters and waitresses make keeps down the cost to run the restaurant and increase the profits by paying less for the employers and having them have to rely on making tips to make a living wage.
Most resterants know which serer slacks off instead of hustles and replaces them quickly so they don't have customers waiting to be taken care of and lose business because of that.

Also there are currently no federal or state laws mandating that small businesses in the restaurant industry provide health-related benefits, but the Affordable Care Act requires that all businesses with more than 50 employees offer some sort of health insurance plan..
So many employees that rely on tips for wages need to make enough tips every day so they don't need public assistance to pay for their family's medical bills.

 

[csphi]

The low hourly wages waiters and waitresses make keeps down the cost to run the restaurant and increase the profits by paying less for the employers and having them have to rely on making tips to make a living wage.
Most resterants know which serer slacks off instead of hustles and replaces them quickly so they don't have customers waiting to be taken care of and lose business because of that.

Also there are currently no federal or state laws mandating that small businesses in the restaurant industry provide health-related benefits, but the Affordable Care Act requires that all businesses with more than 50 employees offer some sort of health insurance plan..
So many employees that rely on tips for wages need to make enough tips every day so they don't need public assistance to pay for their family's medical bills.

Well
If one is a server if they are relying on those wages to support a family

Then they should fine another chosen profession and those jobs are not designed to support a family

 

[knightfan7]

The low hourly wages waiters and waitresses make keeps down the cost to run the restaurant and increase the profits by paying less for the employers and having them have to rely on making tips to make a living wage.
Most resterants know which serer slacks off instead of hustles and replaces them quickly so they don't have customers waiting to be taken care of and lose business because of that.

Also there are currently no federal or state laws mandating that small businesses in the restaurant industry provide health-related benefits, but the Affordable Care Act requires that all businesses with more than 50 employees offer some sort of health insurance plan..
So many employees that rely on tips for wages need to make enough tips every day so they don't need public assistance to pay for their family's medical bills.

All true. .

 

[ElmiraExpress]

A number of our favorite restaurants in central jersey are starting to significantly limit capacity to at or below 20% due to a lack of workers. A few of these places where we’re friendly with the owners have told us if the situation doesn’t improve by June, they’ll be done by July.

I was shocked as virus-wise we’ve turned the corner. Did some research into why this is an issue and it seems like no one has an answer as to why no one wants to work. The economist basically debunked the theory that it’s due to unemployment extensions.

Anyone else have any insight into this? Seems like the industry is in huge trouble if hiring doesn’t pick up.

Two comments:
1. Just last week, I stopped by a middle-eastern restaurant in Montgomery Township, which was still take-out only for lunch. I assumed it was because of coronavirus, but I asked the owners wife, and she said no, they have no workers. She said they advertise and interview, but no one will accept their job offer (probably low pay, although I have no idea).
2. About 10+ years ago, I was sitting at the bar at a restaurant in Raritan Township. The place was almost empty. The bartender and owner were talking, I overheard the owner say without illegal workers, they would close along with 1/2 the restaurants in NJ. I was really surprised. I work in engineering, and I perhaps naively thought there were very few illegal immigrants in NJ. If these guys are already here, shouldn’t we just make them citizens?

 

[yesrutgers01]

Most people that went on unemployment and getting the extra money will be reaching the end of the final extension shortly.
most likely, by late May/June... they will be desperate again.
Some part of the problem is that most restaurants can’t promise many shifts either. And NJ is that a state where they allow you to work part times and they supplement your missing hours. So, even without the extra 300 now, if a worker is even getting 500 a week unemployment- it wouldn’t make sense to go back to work for a few shifts just to make 150-300.
they need to make a change that would allow this and for the state to make up the difference. It would be a win win if they did so

 

[knightfan7]

Well
If one is a server if they are relying on those wages to support a family

Then they should fine another chosen profession and those jobs are not designed to support a family

All due respect, that's way too easy to say when it's not you.

 

[knightfan7]

Two comments:
1. Just last week, I stopped by a middle-eastern restaurant in Montgomery Township, which was still take-out only for lunch. I assumed it was because of coronavirus, but I asked the owners wife, and she said no, they have no workers. She said they advertise and interview, but no one will accept their job offer (probably low pay, although I have no idea).
2. About 10+ years ago, I was sitting at the bar at a restaurant in Raritan Township. The place was almost empty. The bartender and owner were talking, I overheard the owner say without illegal workers, they would close along with 1/2 the restaurants in NJ. I was really surprised. I work in engineering, and I perhaps naively thought there were very few illegal immigrants in NJ. If these guys are already here, shouldn’t we just make them citizens?

You'd be shocked if you walked behind the swinging doors in a lot of places.

 

[applesktrack]

That’s something Trump and the republicans passed last year.

Should have never been extended. I could agree with the initial one but the extension was unnecessary