Donna Fahs, chief operating officer for Parasole Restaurants, struggled to find restaurant managers earlier this year.
Minnesota restaurants, hotels urge customers to book early as holidays near
More limited hours and menus are some of the effects of the worker shortage.
October 22, 2022 at 1:25PM
She was surprised at the rising number of no-shows for interviews and the promising hires who quit after days. With properties that include Good Earth, Manny's, Pittsburgh Blue and Salut and competitive salaries and benefits, Parasole has long attracted and retained strong managers.
Things got to the point Fahs said, that "Phil Roberts, the CEO, would come in every morning and ask, 'Did anybody leave?'"
When the answer was no, she said, "It's a good day!"
The workforce shortage is the biggest challenge restaurants and hotels face as they head into the busiest time of the year — the holidays.
To cope, restaurants are reducing hours, limiting their offerings, switching to counter service and aggressively hiring and training new staff when they can find them. Hotels have caught more of a break since business travel hasn't fully come back from the pandemic, lowering occupancy levels.
Hospitality executives are urging consumers to make holiday reservations as soon as possible, especially for Saturday nights or to secure a space for evening events.
Since evenings are booking quickly, Fahs recommends holding work celebrations at breakfast or lunch. Added bonus: Many employees prefer functions with colleagues during business hours. Expect higher prices, even when restaurants and hotels don't pass on all of their rising costs.
Nearly 9 out of 10 hospitality businesses responding to a recent survey by Hospitality Minnesota described labor availability as "tight." The industry remains 17,000 workers below from pre-pandemic levels, according to data from the Department of Employment and Economic Development.
"It's the number one issue that I hear when I talk to people in the industry right now," said Ben Wogsland, executive vice president of the Hospitality Minnesota industry trade group.
"Workforce is what's keeping them up now," he added. "Given the structural shortage going into the pandemic due to changing demographics, this is going to be the biggest issue in the industry going forward."
At Baldamar in Roseville and Six Smith in Wayzata, owner Randy Stanley uses carrots more than sticks to retain workers these days. He emphasizes teamwork during training.
"If you're hung over, for example, you learn about the pressure it puts on the rest of the team," Stanley said. "It used to be one, two and three and you're out. Now it's more about helping build an understanding of what actions you take and what impact it has on everyone else."
The average age of servers at his restaurants used to be around 40, Stanley said. Now, he's seeing many younger applicants.
"We lost about 15 to 20 years of experience. The good news is the number of applicants has increased," he said. "It's put more pressure on us to train effectively and we're spending more money on that."
The workforce shortage has led to a combination of later opening hours and earlier closing times. That's been true across brands and at urban and suburban locations of Parasole restaurants.
Part of the reason for more limited hours is lack of staff; the other is employees desiring work life balance, something restaurateurs have only recently been forced to consider.
"Our bars at the Foshay, we used to stay open until 2," said Fahs of the Living Room and Prohibition bars. "We close at 11 on the weekdays and midnight on the weekends. The managers, they have families. They don't want to stay out until 2 in the morning."
More restaurants are emphasizing career paths to attract and retain employees.
Hospitality Minnesota's Wogsland points out that wages have skyrocketed in this industry and hospitality can offer one of the fastest pathways to management or entrepreneurship.
Morrissey Hospitality is rebranding its jobs as potential careers to attract employees, said Elizabeth Morrissey Brown, vice president of business development and marketing. The company manages hotels and restaurants, including the St. Paul Hotel and Water Street Inn in Stillwater.
"Yes, a server or a housekeeping role at an hourly rate is a starting point, but you can grow and develop in this industry for a lifelong career," she said.
Baldamar offers rigorous training to new employees as well as continuing education for professional development about food, wine and service so the staff feel engaged.
That's what Sara Jacobson wanted. At 62, she is returning to the hospitality industry after 15 years as an ultrasound technician. She said she wants to work in a buzzing environment and learn the upscale steakhouse service model.
Jacobson was in her second week of training recently following another server after a week in the classroom studying the menu, wine list and culture of Baldamar.
"I'm so happy to be back in the restaurant business and talking to people and making sure their dining experience is elevated."
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