The San Francisco Bay Area’s restaurant industry is facing an unprecedented talent shortage, with dishwashing staff instead cooking and bartenders helping to clear tables. On busy nights, restaurant owners must cut back on table service because there aren’t enough people.
The Mercury News, based in San Jose, California, reported today that the high cost of living in the San Francisco Bay Area and the relatively low wages in the restaurant industry have left the industry with limited staffing before the 2019 outbreak of the new coronavirus disease (Chinese Communist Virus, COVID-19).
The city was closed several times to prevent the outbreak, and restaurants were unable to operate or only offered carry-out service, causing many laid-off employees to leave the restaurant industry for technology, construction, or out of the area.
As the outbreak slowed and restaurants were unsealed, the state of California announced that full normalcy was scheduled to resume on June 15. Restaurant operators are busy attracting and retaining employees, with incentives such as cross-training courses, salary increases, word-of-mouth referral bonuses and health insurance benefits.
The report points out that the talent shortage in the restaurant industry is not just in fine dining, and is not entirely a problem in the San Francisco Bay Area. The restaurant industry across the United States, including large fast-food restaurant chains are looking for ways to retain employees. Taco Bell offers paid family leave to its restaurant managers; the Illinois-based Jimmy John’s sandwich chain offers talent sign-on bonuses.
Laurie Thomas, director of operations for the Golden Gate Restaurant Association, which owns two restaurants in San Francisco, predicts more people will be out looking for work this fall because the U.S. government subsidy program is expiring, and those who receive it now receive a weekly stipend from the state of California in addition to the federal unemployment benefits. Those receiving benefits now receive a weekly stipend from the state of California, plus $300 in federal unemployment benefits.
Thomas said the government benefits give people a cushion and a chance to think about whether it’s not safe enough to work outside the home.
Xavi Pedrosa, which runs a Spanish-style restaurant, has raised staff salaries by 15 to 20 percent; sacrificed a third of its tables on busy nights; and taught employees who would otherwise be washing dishes to cook as long as they are willing to do so. It’s difficult, but that’s the situation”, he said.
Another restaurant gives employees word-of-mouth referral bonuses, if the recommended friend is hired, stable to do full 90 days, employees can get $300, new employees get $100 bonus.
The restaurant industry has a high turnover rate, and operators are trying different ways to prepare for the restart of the economy. The epidemic has brought unprecedented challenges, said business owner May German, “I just hope there won’t be another city closure.
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