Alex Lepe
Cannon Chinese Kitchen closed in August, citing a shortage of staff.
As restrictions lifted and services resumed, many restaurants that dimmed their lights over the last year were relieved to have survived what they thought would be the worst to come, but the shutdown was only the beginning.
Business leaders across the American food service industry are scrambling to contend with the widespread lack of labor.
While the shortage is rippling across the entire economy, the effect is particularly pronounced on the accommodations and food industry. Not only were restaurants $240 billion below the pre-pandemic forecast, according to a report released by the National Restaurant Association, but the sector finished 2.5 million jobs beneath previous employment levels.
Only exacerbated by supply chain issues, inflation, and the increasing cost of imported goods alongside heightened capacity and consumer demand, the downward sloping labor supply trend has become a national economic emergency. And it has finally hit home.
On July 25, the owners of Cannon Chinese Kitchen, a Near Southside staple since 2015, announced that the restaurant would be closing due to a dearth of restaurant workers.
“For all we have overcome the past year and a half, nothing succumbs to what the hospitality/service industry is currently facing with the shortage of staff,” the owners shared in a Facebook post. “We hope your meals at Cannon were like meals at your grandmother’s dinner table, sharing stories, laughter, and delicious food. We are forever grateful to you to let us be a part of your special occasions and memories.”
The owners did not respond to requests for comments.
Alex Lepe
The dining room at Cannon Chinese Kitchen
Ardent adorers of Cannon’s authentic Chinese cuisine can rest assured that Casey Kha and Jarry and Mary Ho will continue to offer similar services at their Shinjuku Station and Tokyo Cafe restaurants in Fort Worth. While they may have withstood the various waves of COVID-19, everything from quaint kitchens to major fast-food chains are questioning if they can ultimately weather this storm.
There’s been much speculation over the reasons for the shortage, with owners embracing theories that workers are wary of returning to low-pay positions with the recent surge of unemployment benefits or that they’ve found more attractive opportunities elsewhere. Simultaneously, the U.S. Bureau of Labor Statistics identifies that as the unemployment rate has fallen from highs earlier in the year, job openings remained steady with a decline in individuals actively seeking employment. Long story short, the compounded effect of this fall and a sectoral shift from the food service industry has encouraged local eateries to become creative in how they’re grappling with the burden.
“Our industry went through such drastic swings, from massive firings during the forced shutdowns to [paycheck protection program] loans, rehiring, and supply chain issues across the board,” Fort Worth restaurateur and chef Jon Bonnell says. “I’ve read that over 90% of small businesses in the entire country feel ‘short-staffed’ right now, and the restaurant industry is certainly in that category.”
Tim Love, chef at several popular Fort Worth restaurants including Woodshed Smokehouse, Gemelle, and more, says that it’s not so much a shortage of labor but a lack of applicants. While his establishments survived the early shutdown, his biggest hurdle as of late has been retaining employees. As other restaurant owners turn to cash signing bonuses and finder’s fees, he’s found success in cultivating warm work environments.
“Not everyone is motivated by money,” Love says. “A lot of people are motivated by benefits or extracurriculars in the workplace, and that’s something our company has always concentrated on.”
Bonnell, the mastermind behind Buffalo Bros, Waters Restaurant, and Bonnell’s Fine Texas Cuisine, has also dabbled in new ways to attract applicants.
“We are using every source we can find to recruit staff now, whereas in years past we only needed word of mouth coupled with employees just walking in the door asking for an application,” Bonnell says. “We are using many online platforms, social media outlets, and any other resources that we can find just to get by these days.”
While restaurant owners are undoubtedly experiencing the brunt of it, consumers are not coming away unscathed. Craving a return to normal, customers came flooding into their favorite eateries to find that the unprecedented cost of the supply chain and labor shortage was passed onto them. For the foreseeable future, consumers can expect to pay more and wait longer for services.
“Consumers are paying more for food and service than any time that I can recall,” Bonnell says. “Our Wingin’ Wednesday special at Buffalo Bros had consistent pricing for roughly 13 years, but prices did actually have to increase a little this past year.”
Unable to work from home, much of the last year and a half has been spent in survival mode for the majority of restaurants. With ever-changing regulations to ensure the safety of employees and patrons, the industry has seen a dramatic shift in operations. As the dust settles, it looks like everyone can expect some permanent changes.
Leaning into the current conditions, another notable Fort Worth chef, Lanny Lancarte, is adopting a leaner labor model with the ghost kitchen concept that only offers delivery and to-go options. Though the fourth-generation restaurateur didn’t launch his first ghost kitchen — Eat Fajitas — until the earlier stages of the pandemic shutdowns, he’d been building this concept since 2017. COVID-19 only accelerated the idea and encouraged early adoption by the community. In September, North Fort Worth will welcome Lancarte’s latest innovation — Fantasma Kitchens — which will act as a hub for three ghost kitchen concepts.
Lancarte notes that while the technology itself hasn’t improved all that much, restaurants have been quick to adopt modernized means to shift the focus from customer-facing service to convenience and safety while still offering an enjoyable dining experience.
“You can come in and use a QR code to not only see the menu but to order and pay so that you don’t have to wait around for someone to come to the table,” Lancarte says.
While some restaurants, including Bonnell’s, Love’s, and Lancarte’s, have realized creative ways to remain afloat, others like Cannon Chinese Kitchen couldn’t contend with the rough waves of the pandemic. As the labor shortage shows no sign of tapering off any time soon, it seems the only options are to sink or swim.
