In a shock, the newly released jobs report showed that the US economy added 339,000 jobs in May, including 33,000 in food services and drinking establishments alone.
The results were issued as the restaurant industry continues to recover from its pandemic-era lows. One restaurant owner noted that as restaurants scramble to find workers, the workers are demanding higher pay and more flexible hours.
Ron Silver, owner and chef at New York City restaurant Bubby’s, said, “What they want right now is to be paid well, and to have a personal life respected. There’s a certain amount of freedom of having a personal life that may not have been thought about before the pandemic.”
In addition to having to deal with a shortage of labor and increased demands from workers, restaurants are also battling inflation.
The latest CPI report noted that overall food inflation continued to remain elevated for the month of April, increasing 7.7% on the year. Food away from home, such as at restaurants and bars, was up 8.6% yearly, and 0.4% compared to the previous month.
When asked how inflation has affected his operation, Silver said, “We have had to [raise menu prices] and we’ve been very judicious about it,” noting he has seen the biggest price increases among products like eggs, chocolate, coffee, and meat.
He added, “We’re really making sure to just sort of cover our expenses rather than turning our price point into something else. Bubby’s has a certain sort of middle point where we fit in, and I don’t want to start getting into the overly expensive category. We adjust when we need to. We don’t hesitate to do it if we need to. So far it’s worked out.”
Silver noted the average bill for a meal at Bubby’s was up roughly 5% to 6%, after his recent price hikes due to inflation. However he says he has not seen any changes in ordering behaviors among his clientele. Rather he says he has noticed that after the pandemic, his delivery business has begun to take off, as customers who grew accustomed to having restaurant fare delivered continue to order in.
He said, “Our delivery business went up by about 500% and stayed there. So [delivery] is a completely new revenue center for us in a meaningful way.”
