The most recent casualty was Papa’s Deli at 228 Chestnut St., which announced May 7 that they would close the downtown neighborhood deli indefinitely “due to the impact of COVID-19 and the struggle of finding employees.”

Another factor complicating the search for employees is that a number of restrictions brought on by the COVID-19 pandemic have now been lifted, and surviving restaurants are trying to build their teams back quickly — all at the same time.

While a number of local restaurant managers admit they are in competition for the same labor pool, they also say some restaurants provide better incentives than others.

For example, there’s ZwanzigZ Pizza and Brewery. Due to its popularity, the establishment fared comparatively well financially in 2020. That may put them in a better position to offer incentives than a number of other eateries, manager Gerald Parker said.

“We’re always trying to grow the team and add a few extra bodies because business seems to be increasing pretty regularly,” said Parker, who had a long line of customers waiting outside his establishment early Wednesday afternoon.

ZwanzigZ is planning to set up a 401K program, as well as continuing its practice of offering a competitive hourly rate, Parker said. The restaurant also has a tip share for employees that Parker says increases the employee’s hourly rate significantly.

However, ZwanzigZ doesn’t have the turnover problem that is found in many other restaurants.

“We have a staff of people who have been here for years and years,” Parker said.

Employee retention

For the most part, employee retention has always been the biggest problem in the hospitality industry, according to Rosta Bell, manager of Zaharako’s Ice Cream Parlor and Museum, 329 Washington St.

“Besides lower-paying jobs, a lot of these folks have court dates, kids, custody issues, health problems and mental (health) problems,” Bell said. “Blue-collar jobs come with blue-collar problems.”

After working in the restaurant or hospitality business for 27 years, Bell said a number of workers may feel they have earned the right to take a break.

“I have a lot of lifetime employees, past and present, who know the work can be grueling,” Bell said. “It’s emotionally, mentally and physically demanding.”

For example, Bell recalled her first restaurant manager position, where the owner demanded she work 60 hours a week for an annual salary of $28,000. In addition, she was expected to be on-call in case of an emergency.

When the quality of service goes down at a restaurant, it’s likely the fault of both management and labor — not one or the other, she said.

“If you don’t show your employees you support them, you lose them, and part of showing support is compensation,” Bell said. “Yes, the work ethic may have gone down, but is that because workers feel they are being taken advantage of? There’s truth to both sides.”

But Bell says her employer doesn’t have a lot of those troubles because they’ve carved a unique niche for themselves.

Since Zaharako’s is ice cream, the popular tourist attraction provides a fun, family atmosphere that attracts young people who want to work there, Bell said. In fact, she’s contacted local high schools in search of students looking for summer jobs — especially those considering a career in the culinary arts, she said.

“I’ll help each of them build their experience and work ethic,” Bell said. “Discussions are ongoing regarding an incentive program, but we’ll only do that if we need to. Right now, the customer and employer ratio is pretty good.”

Downtown

After the general manager of Luciana’s Mexican Restaurant, 310 Washington St., found the restaurant understaffed, Diego Jimenez said he felt he had to start offering financial incentives. But that involved doing some prioritizing, he said.

Describing the kitchen staff as the most important employees in any restaurant, Jimenez said he began awarding them bonuses at the end of each month. While servers get to keep their tips, Jimenez said he pays hostesses and bussers more than other comparable restaurants.

While he still has a problem in mid-May, Jimenez said he anticipates being comfortably staffed no later than the second week of June.

Meanwhile, Chain restaurants are also finding themselves squeezed into finding a way to entice workers to apply, including raising wages. McDonald’s, Sheetz and Chipotle are just some of the latest companies to follow Amazon, Walmart and Costco in boosting wages, in some cases to $15 an hour or higher, The Associated Press reported.

Where are the employees?

One of the most common explanations these days for short-staffed restaurants is higher unemployment benefits and stimulus money.

“I think people got a taste of good money that they might not have been used to before this whole thing started,” Parker said. “They are now living within higher means, and are expecting that to be the new normal.”

Though he’s managed to set up many interviews, Jimenez said some applicants seem more interested in creating the illusion that they’re looking for work than actually getting a job. He advocates stronger regulations regarding what people can do with their unemployment and stimulus.

“I know some people are taking advantage of it, like going off on vacations with taxpayers’ money,” Jimenez said.

Beginning June 1, Hoosiers receiving unemployment benefits will again have to show they are actively searching for work, according to an executive order signed by Gov. Eric Holcomb.

Michael Hicks, director of the Center for Business and Economic Research at Ball State University, said there are multiple reasons that some Hoosiers are not yet returning to the workforce. For example, those who have not been vaccinated for COVID-19 might be afraid about returning to an environment where they could be exposed to the virus, Hicks said.

There are also parents who want to stay home to continue caring for children still involved in virtual learning, as well as workers who found another job after leaving the hospitality industry — and prefer to stay where they are, he said.

The labor situation will likely begin to stabilize around the middle of July or early August, Parker said. That’s when he anticipates unemployment and stimulus benefits will start to fade away.

This article was made available through Hoosier State Press Association.