Restaurants anxious as omicron, high costs take a toll

Many U.S. restaurant owners say they’re worried about long-term survival headed into second COVID winter

DETROIT — While restaurants in the U.S. and United Kingdom are open without restrictions and often bustling, they are entering their second winter of the coronavirus pandemic anxious about what’s ahead: They’re squeezed by labor shortages and skyrocketing food costs and the omicron variant is looming.

“I’m extremely worried. I’ve never felt like we were out of the woods,” said Caroline Glover, chef and owner of the restaurant Annette in the Denver suburb of Aurora.

The rapid spread of omicron already is pummeling the industry in Britain and elsewhere, with restaurants, hotels and pubs reporting cancellations at the busiest and most lucrative time of year. Businesses urged the U.K. government to offer relief after officials warned people to think carefully about socializing. Scotland and Wales have pledged millions of pounds for businesses, adding pressure for Prime Minister Boris Johnson’s government to do the same in England.

“It’s pretty devastating. For private hires, bigger tables of say eight to 16 people, those have pretty much disappeared. These are the bread and butter for restaurants at Christmastime,” said Jeff Galvin, co-owner of Galvin Restaurants, a group of five upmarket venues in London.

Many businesses said hundreds of festive corporate lunch bookings vanished almost overnight as infections began to soar and Johnson announced tighter restrictions, including mandatory mask-wearing in most indoor spaces, though restaurants are open as usual.

Glover in Colorado worries about renewed restrictions if infections climb. For now, business has returned, with her dining room back to full capacity — up from a cap of 50 percent last year — and four greenhouses outside booked far in advance.

Similarly, diners have returned and business is strong for Amy Brandwein, who owns the Italian restaurant Centrolina and a small cafe, Piccolina, in Washington. After her restaurants survived lockdowns with takeout and grocery offerings, “I could safely say we’re back to 2019 levels,” she said.

But staffing remains a challenge. In a recent survey of 3,000 U.S. restaurant operators, 77 percent said they didn’t have enough workers to meet demand, according to the National Restaurant Association, an industry trade group.

Many restaurant workers started new careers or went back to school. Jada Sartor of Grand Rapids, Mich., saw her wages rise from $10 per hour to $16 per hour this year as restaurants grew more desperate for workers, but she recently quit her serving job because she couldn’t find affordable child care.

“The cost of living is just so high you can’t afford to really live,” she said.

Kristin Jonna, owner of restaurant and wine bar Vinology in Ann Arbor, Mich., said she raised wages nearly 40 percent to attract and retain her staff of 35. It was a change that needed to happen in the service industry, she said. But she can’t hike menu prices enough to compensate.

“Everyone knows that beef is more expensive, but high-end, highly skilled labor is expensive, too,” Jonna said. “That is the very tricky part of our business right now.”