Half of the restaurants operate with 20% less staff
Many restaurant owners have turned to apps or app-based delivery services to keep their kitchens busy during the pandemic. With the reopening of restaurants, CNBC Reported, restaurateurs have turned to apps to solve what, in some places, has been the desperate pursuit of staff.
January report of National Association of Restaurateurs quoted by CNBC described the effect of the pandemic on the sector. According to the trade group, restaurant and foodservice sales for the 2020 calendar year were $ 240 billion lower than forecast. As of December 1, 2020, 110,000 establishments had closed, some for good, and 2.5 million restaurant jobs in the United States had been lost by that time due to the pandemic.
According to The data federal Bureau of Labor Statistics As cited by CNBC, the unemployment rate in the category that includes eating establishments was 9 percent in May. By comparison, the national unemployment rate fell to 5.8% in May.
Global unemployment in the United States during the pandemic peaked at around 15% in May 2020. In comment Accompanying the release of the data, economists from the Bureau of Labor Statistics wrote, “Notable job gains have occurred in leisure and hospitality, public and private education, as well as health care and social assistance.
Ellsworth said, according to CNBC, that part of the challenge for restaurant operators is that many workers have found new, higher paying jobs in industries such as construction or landscaping as restaurants have been closed due to of the pandemic.
In May, Milwaukee restaurateur and chef Dan Jacobs told Bloomberg his chain’s survival was in doubt due to the difficulty of hiring workers.
“It’s a draw,” he told Bloomberg. “I have to be realistic and realize there’s a good chance this won’t work.”
PYMNTS reported that the Federal Reserve most recent version of the national survey of economic conditions system, called Beige book, said on June 2: “Overall, wage growth has been subdued and a growing number of companies have offered signing bonuses and increased starting wages to attract and retain workers. Contacts expected labor demand to remain strong, but supply to be limited, in the coming months. “