As the restaurant industry tries to get back on its feet after struggling to survive the pandemic, the turnover rate is making that difficult.
“Last week we hired 20 employees and we lost 22, and that’s been kind of the pattern for the last year,” Matt DiGregory, owner of The Range Café told KOB 4.
DiGregory said his turnover rate is near 100%, despite an increase in wages. When workers leave, they don’t often give a two-week notice either, he said.
“The slightest little thing sets them off, and they just turn and walk out the door,” DiGregory said. “There’s no notice given anymore. It’s just ‘I don’t like you. I’m just gonna leave.”
The National Restaurant Association reported there are roughly 76,000 food service jobs across New Mexico. That’s a 2.7% increase from July 2019. But the analysis also showed rising food costs and worker shortages forced nearly 1,100 restaurants in the state to close during the pandemic.
Gov. Michelle Lujan Grisham, however, seems to disagree with the analysis from the National Restaurant Association.
“There’s no doubt the tourism and hospitality industry has shown incredible strength and resiliency in the last few years, which were especially difficult for this sector,” Grishma said in an Aug. 26 press release.
According to the release, jobs in the leisure and hospitality industry have grown nearly 11% over the past the year, a pace that exceeds the national average.
“I am incredibly encouraged by this recent data, which shows that the work we’ve done together to support business owners and create a thriving economy is yielding results,” Lujan Grisham said. “New Mexico small business owners are the backbone of our local economies, anchoring communities and providing jobs, and my administration will continue to support their growth and success.”
Despite the governor’s rosy assessment of the restaurant industry, DiGregory said it is tough to be successful as rising food costs lead many restaurant owners to make difficult decisions.
“This is a very challenging business,” DiGregory said. “It’s extremely difficult to make money, the margins are so incredibly slim. We’ve just had to basically raise prices. We don’t want to take away from what we’re known for. We’re known for generous portions; we’re known for quality food.”
Despite the challenges facing the restaurant industry, John Haas, president, and co-founder of M’tucci’s Restaurants, is optimistic about the future.
“I think we’re moving in the right direction” Haas told KOB 4. “And I think it’s just, you know, we’re gonna need about six months to a year before we really kind of see where everything is.”