According to Danny Meyer on Tuesday, workers have returned to the restaurant industry as a result of high inflation and the opportunities for financial gain it has brought about.
There is no doubt that menu prices are higher than ever. But guess what that means? If your restaurants do implement a tipping model, servers will be earning more money than they ever have before, the restaurateur claimed in an interview with “Mad Money.”
The founder of Union Square Hospitality Group added that since cooks are employed in non-tip eligible positions, the company’s restaurants give a portion of their revenue to cooks.
According to Meyers, workers have returned to restaurants because they can now earn more money than they could during low inflationary periods.
He claimed that as of right now, “we’re actually on equal footing in terms of our talent count, as we were in 2020 when we first had to stop doing business.”
The National Restaurant Association Reported
Following the Covid pandemic’s onset in 2020, which caused stores to close and staffing levels to be reduced, restaurants experienced a labour shortage. Restaurants are still working to rebuild their employee rosters even though the industry has recovered since the devastating blow with stores reopening.
The National Restaurant Association estimates that as of May, the sector still had 6.1% fewer employees than it did before the pandemic.
Despite the benefits it offers workers, Meyers acknowledged that high inflation and rapid price increases are serious concerns for consumers.
“Since we can’t go out of business, we must pass along the higher costs. It must come to an end somewhere, he said.