Hi everyone, first post here. Been in the restaurant biz in the late 80’s to 90’s in Midtown Manhattan, 2 extremely successful independent places. In other businesses since. Non food related. In eastern Montana, then Twin Cities (Mpls/St Paul) and another Midwest state. Wife just lost $400k family money with 3 partners in a beautiful place because of help as well.
It is the new world versus the old, IMO. Internet and the metro versus the rural, or big city versus the smaller thing going on. Values, outlook, communication, access to instant everything, so on and so forth. Rural or small town younger employees so involved and interfaced with their phones and computers think they are living in a different city with a different than theirs, criteria, etc. And those in a large metro area a little different, influenced by their on line friends and challenges as well as their dreaming, all IMO and experience.
As well, the chains, franchises, and larger operators have to have larger amounts of help. Pay more and more perks the majority of the times in lots of places as compared to the mom and pop or solo operator. Everything from larger C-Store operators, to fast food to companies. While both types of businesses have pros and cons for their employees, if the employee is a GED or high school grad and immediately enters a self supporting lifestyle, he has more of a chance with a smaller operator to learn and really get something going rather than the bigger corporate types that will generally add to his/her frustration within the workforce and reality of making a living rather than building a comfortable future.
I think it is more of a societal problem than anything else. But regardless, all businesses have to handle it. Currently I am in the hazardous material clean up and emergency response business for trucking companies and railroads. We have had an extreme employee problem for the total 5 years I have been partners in this. For example, we need CDL drivers for our heavy equipment and they all have to double as equipment operators and emergency site workers. We have been paying $20 to $28 per hour for straight 40 hours and recently well over $30 per hour. Most of the guys make about $2,000.00 a week, and I dont think anyone of them have 4 years of college. Yes, they can run a skid loader, back hoe, excavation equipment, dump trucks, and other equipment. And we have lots of set up time, down time, site time waiting around. It is not a continuous back breaking job by any means, such as construction company work, road construction, etc. Frequently our days involve 3 to 4 hours of actual site work with the rest waiting on state environmental officials, lab people, EPA officials, fire marshals, etc., to clear the site, check things, sign off on things to go to next phase, etc.
The last couple of years the guys under 30 have all challenged us, everyone of them. No matter what we do, it is not good enough. 2 of my top guys were at $33 and $36 per hour straight time, double overtime, and 50% health insurance paid, etc. Both want more pay and less work. One lost his CDL and only has a regular drivers license, we make do. Advertise and advertise. No good! Attitudes and demeanor’s are deteriorating big time! My partner fires them, I hire them back. We need over 10 guys on schedule. Lucky if we have 5 qualified ones. My best guy was 20 years old. Was able to run everything, no problem. Only thing was, he worked liked he owned the company, fast, careless, stops working to make phone calls and text, etc., etc. Pre 2005 I would have fired him in a heart beat and replace with 3 guys better qualified and harder working types. Now, cannot do.
I had a gas station C-store with a tractor trailer garage and heavy wrecker business with a small haz mat business from 2002 to 2013 in eastern Montana as well. Sold it in 2013. Was a gold mine! Help super hard to get with the Bakken oil field expansion and development there. All my $18 to $25 an hour people then, went to the oil field for $40 hour plus. Now I heard it is all scaled back, crashing and of course the XL pipeline is in and huge work force cuts. No one wanted to buy my business, I had to sell all the equipment and auction everything off, LOL.
My wife went in partners with 3 other friends and family members and re-opened a closed Asian restaurant in the Twin Cities. Less than one year closed it, lost $400k, huge reason was no help, bodies yes, but they do nothing, stand there and really don’t want to work, be creative, do things the right way, put any energy into it, and so many steal if no owner or manager is standing over their shoulder all the time. Had a great customer trade built up. She locked the doors and rents a part time commercial kitchen and herself and one cook and one other person does take out delivery only. She now makes more money than the restaurant where she employed people that supported their families, supported vendors, landlord, city taxes, etc., etc., F the merry go round that makes the business world I guess??? But it is all a reality we have to all face with the internet.
I am dissolving my partnership in the current business I am in. I purchased a restaurant in the Midwest in a small town, not much competition, a huge federal facility a mile away opening that will employ over 2,500 workers, etc. I have a gambling license for machines and an alcohol license for the location. Nice bar area/counter, pool table, some games for the kids and adults, a great outdoor patio and putting in a few sections with outdoor couches, seating and fireplaces and cooking at the table, think Korean style BBQ but with a twist. Everything brand new. I am putting in a Cajun/Asian and Italian stuff and lots of infusion special recipes, and that mom and pop specialty pizza made with love!! Yes, I am from NYC so I still know about food and pizza!
But yes, employees make or break you in every-way. I think the problem is more complex than most of us realize. Probably worse in larger metro areas than smaller populations based towns, IDK. But the ones I am familiar with, that statement is true.