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Most people have encountered it – while waiting for service – in a grocery store, department store or pharmacy.
And most people know why—employers are having a hard time finding workers amid the so-called Great Recession. Last year, an estimated 47 million Americans left their jobs in retirement to start their own businesses or seek greener pastures, according to the U.S. Bureau of Labor Statistics.
But perhaps no shortage is more apparent than in restaurants.
64% of Colorado restaurant operators say their restaurants are understaffed to support customer demand, said Dennis Mickelson, director of communications for the Colorado Restaurant Association.
“We’ve been hearing that it’s been difficult to find and retain workers at any time since the outbreak began,” Mickelson said.
That’s true for Jack Topakas, owner of Jack and Telly’s Greek Tavern in Old Colorado City. After having to keep the store open Mondays and Tuesdays due to low staffing during the summer months — a busy season for the Old Colorado City and Topakas restaurant — he hopes to reopen seven days a week.
But then two cooks and a dishwasher stopped.
“It’s something I’ve never seen them do in 25 years,” Topakas said. “We get someone new, we keep them around for a while, and the next thing you know, they’re gone. They don’t come to work on time, they don’t call and show up.”
Topakas said that due to the instability in his workforce, his core team of dedicated employees could not meet some of the demands of the job.
“We’ve always made everything from scratch here at home, and we’ve been very proud of the way it tastes,” Topakas said. We still do it, but I’ve had to add in a couple of purchased sweets made in a factory somewhere because my staff here can’t keep up.
Topakas is about 30% of its full workforce.
“The last year of my life has been very disappointing,” he said.
Topakas further emphasized the need for domestic workers.
That’s the case for Bailey Richardson, manager of Dosantos on East Moreno Street in downtown Colorado Springs for four years.
In the past, “sometimes I get as many as 30 applicants in one night,” Richardson said. “… Now I get one or two a day, maybe five a day high.”
As a small business, Richardson said it’s difficult for Dos Santos to follow the incentives offered by larger companies.
“It’s hard to find people who are interested because there are so many different places trying to offer so many things,” Richardson said.
This is why dos Santos recently increased his salary, Richardson; She said it helped keep more experienced staff on board.
The taco shop also tries to give employees enough breaks.
“We offer very flexible schedules and are very adaptable to what people need,” Richardson said.
“…We’ve created a culture where if you need a break to get out of here, have someone else come in and help them when it’s time for your break.”
Richardson said Dos Santos is looking to downsize in the fall, but the restaurant is short on staff due to some employees graduating school or changing jobs.
“I think after people spend more time at home, they realize how important work-life balance is,” Richardson said. “And maybe it’s a place to live or whatever — they’re trying to find a career that brings them more joy than they did in the past.”
In addition to labor shortages, restaurant owners are frustrated by high prices. The salary increase is just one of the many other costs Bob Rusnak has to pay for five Dickey’s Barbecue Pit locations in Colorado Springs and others on the Front Range.
“We’re paying more than double what we were paying (last year) to buy our ribs and brisket and pork,” Rusnak said. “…we’re a value proposition for our guests and we can’t grow fast enough or high enough to cover that.”
For restaurant owners dealing with the pandemic, inflation and labor shortages are hampering hopes of recovery as Covid-related lockdowns and public health orders fall into the rearview mirror.
A recent National Restaurant Association poll found that 46% of Colorado operators say business conditions are worse now than they were three months ago, mainly because of food, labor and other operating costs, Mickelson said.
The pre-tax profit margin for a typical restaurant is approximately 5%. High operating costs – food costs up 21.8% from 2019, labor costs up 18.3% – are unsustainable for most restaurants, Mickelson said.
“So when you go out to your favorite local restaurant, please be kind and patient with the people serving you,” Mickelson said. With a reduced team, they are doing their best to provide you with excellent service.
A funeral service and celebration of life for Sam Guadagnoli has been scheduled.
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