Valley restaurants still see shortages

Like COVID-19 itself, many effects from the pandemic and the nationwide shutdown continue to linger throughout the country and here in Arizona. As restaurants in the Valley prepare for the peak of the dining season, some are still struggling to fill restaurant positions and adjust to issues caused by the supply chain.

In the most recent data from the Bureau of Labor Statistics, unemployment in the food service and drinking establishments is still above pre-pandemic levels at 7% as of October. The highest unemployment rate in this field over pandemic times was 35.4% in April 2020.

However, local restaurants in Scottsdale fear they will have to raise prices due to paying staff overtime and rising prices of products from the current supply chain issues.

Jake Guzman, a manager at The Herb Box, a local eatery in Scottsdale, says the restaurant has done all it can to attract applicants, without any luck.

“We exhausted just about everything that we can think of,” Guzman said. “We’ve even asked people on the streets if they would like to come for an application.”

Guzman said how the restaurant has spent thousands of dollars on the job listing site Indeed with little to no return. Periodic postings on social media, word-of-mouth and help-wanted signs are more methods Guzman has tried.

Currently, Guzman’s location is still understaffed despite the efforts to attract new workers.

“Where we would normally run with four line cooks and six or seven servers, we are now doing it with two line cooks and four servers,” Guzman said. “So, the pressure is really big, and if it continues, we may lose those employees.”

Guzman says one reason that workers are hard to find for local businesses is the competition with larger companies and restaurants that have the resources to offer employees higher wages.

Another issue hindering restaurants is the increase of prices for products they use daily, like ingredients, utensils, and take-out containers.

Rod Castro, the manager at Julio G’s Mexican Restaurant in Scottsdale, explains how the supply chain issues have been their main issue.

Castro said the problem started about a month ago when Sysco, a multinational distribution company of food and restaurant products, stopped delivery for many small restaurants.

“You might get something one week, but not the next week since Sysco basically stopped delivering to small businesses,” Castro said. “We kind of had to fend for ourselves and look for other providers.”

Guzman also saw this issue take place for other restaurants when talking about supply chain problems.

“Yeah, your major food distributers, Sysco and Shamrock, they just stopped making deliveries, and there was no warning there was nothing to be said prior,” Guzman said. “They didn’t have the manpower to do it.”

As a result, Castro has had to go out and get supplies he needs from nearby stores.

“Basically, we’d go to Costco get a few things there, go to Smart & Final, go to Restaurant Depot,” Castro said.

Now, Julio G’s works with smaller, local distributors to get supplies, but Castro says these companies’ products can be limited due to their small size. They also can’t deliver as frequently as the bigger corporations.

The increased price of food and restaurant supplies has also played a role in the problems these local restaurants are having.

“To-go containers, six months ago they were $25 a case, now they are $95 a case, and chicken breasts are up 100%,” Guzman said. “Knives and forks, they are on back order you can’t even find them.”

For Castro, it doesn’t stop at containers and food. Stocking the bar at Julio G’s has been a problem as well.

“We have issues with tequila and beer,” Castro said. We couldn’t get Pacifico for three weeks.”

These restaurants are hoping for an end of their troubles soon, but prices may have to be raised if troubles continue.

“I’ve been in this business 30 years, and this is the toughest I’ve seen it,” Guzman said. “If it continues, the only alternative to survive, because you are going to get to a fight or flight stage…you ultimately have to raise your prices.”

For Castro and his staff, it is about making the best of the situation

“Morale wise we’re doing good…this is our livelihood, so we take care of it kinda thing,” Castro said.