Omicron, high food costs take toll on restaurants

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.

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.

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.

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

U.S. sales at restaurants and bars hit an estimated $73.7 billion in November, up 37% from the same month last year, according to preliminary data from the U.S. Census Bureau. But that was partly due to higher menu prices as restaurants try to account for inflation.

Restaurants also are clamoring for government support in the U.S., where the Restaurant Revitalization Fund ran dry earlier this year after dispersing $28.6 billion to 100,000 applicants.