Restaurant operators face staffing shortages, higher food costs and menu prices

Susan Selasky, Detroit Free Press
·2 min read

A new survey of Michigan’s restaurant and hospitality industries revealed that struggles continue with staffing, inflation and supply chain issues.

Both industries are grappling with the aftermath of the pandemic.

The survey was conducted May 2-9 by the Michigan Restaurant & Lodging Association (MRLA), with the results released on Monday.

Staffing shortages, paying higher wages and increasing menu prices are some of the larger issues operators say that they are facing.

More than 80% say they don’t have enough labor to meet the demand. Aside from higher wages, operators reported offering bonuses, expanding fringe benefits and offering flexible scheduling to attract workers.

Responses came from nearly 150 Michigan restaurant and hotel operators who represented more than 500 locations and nearly 15,000 employees statewide, according to the MRLA.

Other key survey findings:

  • One in five establishments reports staffing is more than 30 percent below needs.

  • 59% are operating at fewer hours or days because of inadequate staffing.

  • Nearly all have increased wages over the last 12 months.

  • 77% of operators have experienced commodity inflation in the last 12 months that is greater than 10 percent.

  • Menu prices increased at 87 percent of restaurants over the last 12 months, with most increasing 5-10%.

  • 74% of hotels raised room rates 5-10% over the last 12 months. Some increased by 20%.

  • 60% of all operators said “inadequate affordable housing” for their specific workforce was a challenge, with 89 percent of hotel operators saying so.

  • While nearly two-thirds (62%) report profitability right now, 61% percent reported a decrease in profitability over the last six months.

“While there is growing evidence that the worst is behind us, the data in this survey paint a clear picture that the hospitality industry continues to operate in a particularly challenging environment. Inflation, supply chain and an inadequate workforce combine to suppress profitability and imperil a much-needed comeback for Michigan’s hotels and restaurants,” said MRLA President and CEO Justin Winslow in a statement.

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“We believe a targeted campaign to educate, train and recruit a world-class hospitality workforce is needed to meet the unmet demands of our tourism-driven state and hope to partner with the governor and Legislature to quickly achieve that goal.”

Since the beginning of the pandemic, the restaurant industry has faced several shutdowns of indoor dining, capacity limits and other restrictions. Though cases went down and restrictions were lifted, the industry continues to face challenges.

Contact Detroit Free Press food writer Susan Selasky and send food and restaurant news to: sselasky@freepress.com. Follow @SusanMariecooks on Twitter.

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This article originally appeared on Detroit Free Press: Restaurant staffing down, food costs and paying wages are up