NYC restaurants struggling to rise to pre-pandemic profit, employment levels: 'They're desperate'
Brooklyn Chop House says employees are following the money and fleeing New York City for Miami
Restaurants struggle to bring employees, profits back to pre-pandemic levels
FOX Business’ Madison Alworth talks to a NYC restaurant director on difficulties facing the restaurant industry and what business owners are facing throughout the country.
New York City restaurants working to grow back to their pre-pandemic success are struggling to find employees, further straining profits and hours of operation.
FOX Business' Madison Alworth reported from Brooklyn Chop House in New York City on "Varney & Co." Tuesday as restaurant owners blame the difficulties on residents and employees fleeing to more business-friendly states like Florida.
Executive managing director of Brooklyn Chop House Stratis Morfogen argued the "cream of the crop" employees are following the money and heading south.
"They're following where the economy went," Morfogen told Alworth. "Our customers left New York City, and they went to areas like Miami."
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According to the Jolts Report, over 10.6 million jobs were left unfilled in June. Alworth pointed out that full-service restaurants are down 11% in staffing which has ripple effects for the overall profit and success of businesses.
Yelp reviews on staffing shortages are also up three times to last year's reviews, showcasing the prevalence and prominence of low employment.
Now Hiring signs are displayed in front of restaurants in Rehoboth Beach, Delaware, on March 19, 2022. (Photo by Stefani Reynolds / AFP) (Photo by STEFANI REYNOLDS/AFP via Getty Images) ((Photo by STEFANI REYNOLDS/AFP via Getty Images) / Getty Images)
"Restaurants really across the board are dealing with this," Alworth reported. "If you go out to eat, oftentimes you're waiting a lot longer."
Morfogen added that many potential employees are also staying out of the job market to keep their unemployment benefits.
"I'm seeing people that are ready, willing and able to work and actually super talented saying to us, ‘Hey, you know what, I need to stay on in my unemployment,’" Morfogen shared. "'Pay me cash.'"
Americans across the country are struggling due to rising inflation which hit 9.1% in June. As Congress moves forward with bills to tackle inflation, many American families and businesses have hit a point of desperation.
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"A lot of restaurateurs have taken such a beating [that] they're desperate, and that's what it is," Morfogen stated. "That's what we're facing."
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