Restaurants struggle with hiring workers
Jason Chin hasn’t been able to bring back lunch service at his Baldwin Park restaurant Seito Sushi since the onset of the pandemic because of an inability to staff up.
“We just cannot seem to get ahead,” Chin said. “We can’t seem to hire enough to be able to expand our services.”
Chin is trying to fill about 20 to 25 jobs between his Orlando restaurants: Seito, The Osprey, Reyes Mezcaleria and the soon-toopen The Monroe.
Filling restaurant jobs amid the ongoing COVID-19 pandemic has become a national problem, said San Diego-based analyst John Gordon.
Gordon said higher unemployment compensation payments and increased wages across different industries are making it harder to hire people for restaurant jobs.
“There’s always the possibility of finding cleaner, day time and early evening work as opposed to late evening work,” Gordon said.
He also noted career changes following last year’s cuts during the pandemic.
“No one likes to live through a layoff,” Gordon said.
The hiring issue is taking place with the unemployment rate in the Orlando area at 6.5% in February, up from 3.1% that month last year. Last May, unemployment in metro Orlando spiked to 22.6%.
“It kind of defies what you would think. It goes against all logic that we’re having this difficult of a time trying to hire,” Chin said. “It’s just a very real topic that we’re dealing with right now.”
Chin named several potential causes, including unemployment and stimulus funds being collected, staffers feeling
unsafe coming back to work in a business where you have to deal with people during the pandemic, and, with a lot of staffers being younger, it’s possible college students taking online classes might not even be in the area anymore.
He said his wages are pretty competitive, with tipped employees making $150 to $250 in tips on average during a standard dinner shift that lasts about six to eight hours and non-tipped employees making about $12 to $18 per hour.
Amid the tight labor market, Orlando-based Darden Restaurants announced it would be ensuring that none of its staff make less than $10 per hour, a figure that includes income from tips. The business has more than 1,820 restaurants including Olive Garden, LongHorn Steakhouse and other chains.
“I think our greatest challenge right now is staffing,” CEO Gene Lee said on an earnings call. “It’s staffing, trying to attract people to come to work. That’s why we’re strengthening our employment proposition, which is already strong.”
Florida voters in November approved gradually raising the state’s minimum wage to $15 an hour by 2026 and national retailer Target raised its starting wage to $15 an hour last year.
Darden spokesman Rich Jeffers recently said the company’s wage increase will affect 20% of 135,000 hourly employees, but 20,000 of those employees haven’t been able to get hours because of capacity limits. Hourly employees at Darden earn $17 per hour on average.
Gordon said Darden’s wage guarantee, along with $17 million in bonuses for its hourly restaurant workers, showed commitment by the company.
“It’s sending a message that we’re serious about keeping and retaining employees,” he said.
It’s not always about the money with employees, although it is part of the equation, Gordon said.
“Employees want to be respected and they want to be able to see a promotion cycle. They want to be able to see a promotion ladder,” he said. “They want to be able to think and see that they’re learning and that they’re progressing.”
Take 24-year-old Aaron Johnson, of Orlando, who got a job at the planned
White Castle near Disney World during a day of interviews for the new restaurant.
“I heard White Castle is a good opportunity job for growth,” Johnson said. “I’m here to grow and to achieve greatness with this company.”
The new White Castle is expected to staff about 140 people, including managers, and wages start at $13 per hour before increasing to $13.50 after 30 days and $14 after 90 days.
One in four team members has been with the Columbus, Ohio-based business for 10 or more years, said Michael Guinan, vice president of operations and services. The Orlando restaurant is the first White Castle in Florida since the 1960s.
“Our goal is to provide a culture that is one of family, a great atmosphere and it makes you want to stay with the company,” Guinan said.
Johnson said a fun work environment is also important.
“If you can come to work and it feels like family instead of a workplace, that’s what keeps you to stay,” Johnson said. “I like customer service. I like interaction with people.”