Canadian restaurants grapple with staff shortages, rising costs

Atlantic Canada was the first location of a fried chicken restaurant chain. It was so popular, they had to reduce hours.

Popeyes Louisiana Kitchen, which opened in Halifax a few weeks back, has had to reduce its schedule due to high demand. Customers waited for hours and staff were scrambling to meet their demands.

“Due to industry-wide staffing challenges, the store is open for one less hour than before,” Popeyes spokeswoman Emily Ciantra saidSend an email.

“The restaurant aims to be back to its regular hours by early June.”

This bizarre example of a restaurant that is so popular that it has to close early highlights a widespread problem facing Canadian restaurants: A labour shortage.

“The new Popeyes that opened actually had to … cut back hours just to give their people a rest,” saidGordon Stewart, executive Director at the Restaurant Association of Nova Scotia.

Restaurants across the country are reducing hours and condensing menus as persistent staff shortages and spiking costs threaten to derail the industry’s comeback from crushing pandemic restrictions.

Restaurants have taken the decision to shut down despite increased business. Diners are returning to restaurants in greater numbers.

“Customers are back. But when you don’t have staff to work all the shifts, you start cutting back hours,” said Stewart.

“There are very few restaurants now that are running seven days a week and full hours.”

Canada’s restaurant industry was slammed by two years of shutdowns, repeated layoffs and strict capacity limits. Around 13,000 restaurants across the country were forced to close permanently.

As people moved to more stable incomes, changed jobs or returned to school, the situation caused a significant exodus from the sector. Canada welcomed fewer immigrants during the pandemic. However, some newcomers can find employment in the restaurant business.

Compounding the issue now is Canada’s rock-bottom unemployment rate, which Statistics Canada said hit 5.2 per cent in April.

As the patio season gets more popular, the restaurant industry expects that there will be 210,000 vacancies across the country this summer. saidOlivier Bourbeau is vice-president federal affairs at Restaurants Canada.

“It’s extremely difficult for restaurants to find staff,” he said. “We just don’t have enough workers.”

In both full-service and fast food restaurants, there are numerous job opportunities.

However, the problem is greatest in kitchens.

“Red seal chefs, sous-chefs, line cooks – that’s where the shortage is really hurting restaurants,” Stewart said.

While some restaurant owners blamed the government for the shortage of staff during the pandemic, the continuing shortage points to a deeper and more complex problem. Some employees in the industry have been promoted. saidThe problem is the long hours, insecure schedules, low wages, and difficult working conditions, especially in busy kitchens.

Restaurants are also experiencing spiralling costs.

Statistics Canada reported the annual inflation rate hit 6.7 per cent in March, while food costs – a key input for restaurants – increased even more, with prices for dairy, pasta, meat and cooking oil all soaring.

“From gasoline to a steak, it’s all gone crazy,” Stewart said. “Costs are up right across the board.”

In order to reduce waste, some restaurants are removing less profitable meals like breakfast and lunch. Others are offering smaller portion sizes, rethinking the so-called “centre of plate,” typically beef, chicken or fish, or even just ordering less food at one time.

“If you don’t sell something by its (expiry date) it’s gone, you have to throw it out,” Stewart said.

“So they’re ordering less. They’re watching the inventory, controlling it, watching the plate size and designing smaller tighter menus.”