Hospital Stays, Labor Shortages and Wage Hikes: My COVID-19 Story

David M. Schiffman continues our “What Keeps Me Up at Night...” series. This is a space for operators to explore their deepest concerns and issues within our industry. Read the last installment, “Hospitality and an Unbalanced Life” here. David Schiffman has been working in the F&B industry for over 20 years, as a manager, consultant, and owner. For more information, see here

It’s late. I’m sitting in my office trying to organize my thoughts on restaurants in a post-pandemic world while things are quiet. This is the third time I have been in this position, ready to give my input and real-life experience on paper but I just can’t get the time due to constant employee staffing issues.  

I really thought I would see the employees come back when COVID-19 was under control. Sure, maybe some of them moved on to different jobs, in different industries, far away from the restaurant business. That’s understandable. But I thought there would be so many potential employees out there, excited to get back into the workforce after over a year. I thought I could just post a few ads on social media sites, sit back, and wait for people to come to me. It would be easy.  

I was wrong.  

In the news, they talk about this being the time of ‘The Great Resignation’. But I think it’s really an ‘Employee Pandemic’. Everyone has their theories, it’s so multifaceted. It’s all over the news stations and social media. Most of what I see lines up with my experience in my own venues. The pandemic is still affecting my business, taking a toll on my team, and my life.  

READ MORE: Hospitality and an Unbalanced Life 

Earlier today I got a text from one of my managers. It was 7:55am. I know that, because my wife had just left to drive our kids to school. He told me Joe* was admitted to the hospital. Joe is a good friend, and a great employee. He truly does whatever is needed to keep the business running. I spoke to him just last night about our staffing concerns, and our weekend brunch service. Joe was going to work brunch, because we didn’t have anyone else. I asked if he was up to speed on the menu items. He responded, “No, but I plan on watching YouTube tonight to get the correct cooking time for the different style eggs.”   

This guy is responsible for all the venues. It’s a tall order, but he knows what it takes to get the job done and just does it, never a pause.   

I spoke to Joe after he was admitted. Some of his personal medical issues have come back again. I think it’s because of the increased stress of the post-pandemic staffing crisis. Joe is getting excellent care, I cover healthcare for my employees, and taking the needed rest before he comes back to our team. 

This crisis is not only about hiring new staff, but about keeping your existing employees healthy, and somewhat happy, as they pick up the slack of unfilled shifts. As a business owner, I know the doors must stay open, as they were closed for far too long. But I also wonder, at what cost?  

READ MORE: It's Too Much. We're Exhausted. Maybe This Will Help. 

Without Joe, we’re another member down, on an already skeletal team. We’re trying to hire, but it’s different now than it was before. My managers spend their days sorting through applications. It’s not a huge task, as an ad that used to bring in 50 applicants now, if we’re lucky, might attract three. Out of those three, maybe one is qualified for the job position. We’re hitting up everyone we know for leads, trying to figure out how we’ll survive another day with such a small team. 

Most of the applicants realize the supply and demand issue we’re faced with. The bar and restaurant industry is in desperate need of employees. Applicants take advantage of this, demanding unreasonable hourly rates. I’m not against the proposed minimum wage increase, I'm all for it. I’m based in San Diego, where the minimum wage is now $14 an hour. For an experienced line cook to come in and ask for $17-$18 an hour is fair. As they grow with the company, their hourly will as well.   

But that’s not what’s happening here, not even close. People are coming in demanding $25 an hour, often with no experience. When asked why they deserve the high hourly rate, they straight up tell you that you need staff.   

At the end of the day, I still need to fill my line. Would I rather close one of my restaurants because my ego is getting the best of me? Hell no! I will take the hit on my payroll and justify it by keeping my business open and my tables full.   

READ MORE: A Choose Your Own Salary Pay Model is Working for This F&B Group 

But what happens now is the domino effect. My current employees get wind of the new employees’ hourly rate, and then they demand a raise to match. What do I do? Well, what can I do? I give them a raise.   

I have to say that not all of my employees act this entitled, and they are smart enough to realize it is not in their best interest to strong-arm a business during a pandemic when everyone is hurting. 

Now it’s 6pm, and the next item on my list is to follow up on an email from one of my general managers, John. He’s put in his notice. I’m not surprised. He’s been with me for 15 years. We sat down months ago, when the business was still operating on minimal COVID-mandated hours of operation. We sat down as friends, but also co-workers. I had noticed some changes in his attitude then, and figured it was a good time to discuss how he was doing, and how he felt about the challenges that COVID-19 had put in front of us.  

He was open about his change in his attitude, but he wasn’t sure what was causing it. I remembered he said he might need a change, a new adventure. After 15 years in the industry, I could understand that. I had the same thoughts while I sat at home for months, watching my businesses lay dormant, not sure if they’d open up again. I wondered what I would do next. I tried to imagine what it would be like if my businesses did reopen, and what it would be like if they didn’t. I tried to plan for the next worldwide pandemic. It was a lot.  

READ MORE: The $3 Program Providing Healthcare to Bars & Restaurants 

We decided to follow up in a few months, and that time finally came. John was ready for a change. He wasn’t sure what he wanted to do, but he knew it wasn’t in this industry, not anymore.  

I don’t want to see him go, but I know it’s time. This is just another effect COVID-19 has had on employment. It gave us time to think and reevaluate our lives. I can’t say that is a bad thing. Self-evaluation is healthy and not many people get that much time to commit to themselves. 

I still feel optimistic when I think of the future of restaurants. Employees will come back in time, and the industry will adjust to society’s changed needs. They say there’s a light at the end of the tunnel, and I want to believe that. That tunnel may be backed up with cargo ships right now, but I still choose to believe that there are better days ahead. 

The views and opinions expressed here are solely those of the author and do not necessarily represent those of Bar & Restaurant and its employees. 

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