- Restaurant owners say they are struggling to pay the rent amid a devastating labor shortage.
- Two-thirds said they had difficulty finding workers, according to a lineup survey.
- This is despite the fact that they offer higher salaries to attract new contracts.
- See more stories on the Insider business page.
Nearly half of restaurant owners say they don’t believe rent can be afforded this month, as the pandemic continues to paralyze the industry, according to a survey by Alignable published by Pizza Marketplace.
Many of these owners said that the current shortage of labor in the United States, which in some cases caused them to shorten opening hours and therefore reduce revenue, was the reason that motivated this, said the network of small businesses Alignable.
Alignable surveyed 7,774 small and medium-sized U.S. homeowners and found that most businesses said they struggled with rent payments due to inflationary pressures and a shortage of hiring.
But it was found that the restaurant industry was hardest hit by the problem, with 49% of restaurant owners saying they are unlikely to be able to pay the rent in May. This exceeds 35% the previous month.
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“This is sad news for the restaurant industry, which, last month, appeared to be one of the leaders in the recovery, slowly bouncing off COVID’s problems,” Alignable said, noting that many restaurants had “passed the last 14 months struggling just to stay afloat. “
Their surveys showed that restaurants ’ability to pay rents fluctuated much more than small business owners in other industries, which soared in March before sinking in April and then rising again in the May.
The latest survey, conducted between April 24 and May 17, showed that half of small business owners said they were struggling to find workers, rising to two-thirds in the restaurant industry.
This is despite the fact that many restaurants increase wages to attract new workers. Alignable said half of the restaurant owners in the survey said they now paid workers more than they had during the heyday of the pandemic, mainly to attract new hires.
“Based on that data and the hundreds of comments we’ve received, it’s fair to say that much of the restaurant’s mishap can be attributed to labor shortages,” Chuck Casto, head of Pizza Marketplace, told Alignable communications and corporate news.
Not only small businesses have been affected by labor shortages. Restaurant chains like Subway and Dunkin ’have reduced opening hours and closed dining halls, while Chipotle, Taco Bell and others offer lucrative perks such as cash bonuses, raises and educational perks to attract new staff. Even a McDonald’s restaurant offers free iPhones to new hires.
Ayelet Sheffey, of information, reported that the shortage could be caused by a mix of unemployment benefits, COVID-19 health problems, care responsibilities and low wages.
Danny Meyer, CEO of Union Square Hospitality Group, said many restaurant workers left New York City because they could not afford to live there without their usual wages during the pandemic, which led to a major staff flight for companies in the city. He added that many fired officials got jobs in other industries and might not return to the hospitality industry.