Time for a "Restaurant Reset?" in America?

Interesting and troubling stories hot off the presses from Jordan Barry in Vermont's Seven Days magazine Facing-staff-shortages-vermont-restaurants-rethink-ways-to-work and the New York Times Food Desk recently re: a number of changes in US restaurants observed (presumably) due to the ongoing Covid 19-21 pandemic. Everyone agrees, the changes aren't for the better. But are they forever?

People have very strong opinions about just how far they want to go ‘supporting their local restaurants’ and staff during and (hopefully soon) in post-Pandemic times. With widespread shortages in labor, supplies and ever-changing rules (and more very rude, impatient patrons) amid smaller portions, higher prices and especially burgeoning service charges, eating out at a restaurant just isn’t what it used to be…and perhaps never will be again. Dining and restaurant changes - NYT

Maybe it’s time for America to undertake a massive “Restaurant Reset?”

One of the most compelling comments I found from the NYT's story's readers (almost always more illuminating than the story itself) was that – repeatedly voiced in similar ways by many, actually - It is time for US restaurant operators to simply pay their staff a living wage – whether they are managers, wait staff or back of house, cooks, whatever. And then to price everything provided to customers accordingly. And then we’ll see if these restaurateurs have earned those higher menu prices by simply watching customer behavior that results. If it’s worth it, they’ll pay. If not, they won’t. No more race to the bottom in portions, quality and/or standards of service provided – unless they can prove their customers will accept this and pay for it directly through their bills – largely irrespective of tipping being required (more and more automatically included as a ‘service charge’, ‘pandemic charge’, ‘fair wage charge’ or whatever.) Pardon the pun, but diners are ‘fed up’ with traditional US restaurant management models. Something's gotta give.

Questions for us all…and for you, dear diner

• We must ask ourselves, as patrons of restaurants (even when just picking up food/drinks via takeout), will we pay more for our meals at any restaurant if doing so achieves something for staff and society and enhances and simplifies the experience for us at the same time? Is it important enough for you to make sure a fairer wage results from instituting pricing changes and transparency in lieu of the increasing bombardment from restaurants with extra requests to you, its customers, for tipping or service charges due to any excuse (higher food costs, supplier shortages, inequitable 'splits' with delivery apps , paying a living wage to staff, etc.)
• Put this way, do you support tipping beyond the bill for meal ‘service’ (whether there is any visible, tangible service as you customarily have known it or not) to compensate – primarily - your server – even knowing that the back of house restaurant staff is often totally underpaid in terms of skills and work required vs. most waitstaff (Don't take my word for it, ask sous chefs and line cooks in hot, sweaty, crowded kitchens across much of America.) Or would you rather just pay more to reflect the true, actual higher cost of fairly compensated staff making and preparing your meal that a more rational pricing operational model would require?
• Is this another interesting case where the US pretends or claims to excel or provide more choice or value but just doesn’t really measure up vs. other countries, because tipping is mostly a US/North American custom anyway and our service received may only be marginally better (?) Plus, overall food quality isn’t often any better here either, though admittedly we may get gigantic American-sized portions for our money…ironically "delivering" in another way that might not be the best recipe for our chronically and increasingly growing waistlines and healthcare costs!

OR

Would you agree that - to help achieve consistent living wages and benefits for workers and reduce the current massive staff shortages afflicting the restaurant industry - one or two or three or more parts of the current restaurant ‘management’ equation MUST change? Try these ideas for a start, though I’m sure you can think of more:

1. Restaurant owners must be better planners and managers so their profit margins remain adequate (in all but the most unusual circumstances) to stay in business AND provide reasonable ROI for themselves/investors while still paying staff enough and menus still being priced fairly vs. the value they deliver to the customer? (Hint: every other business has to do this and generally can’t mandate charges/tips to pay their employees indirectly - in this case via the customer - just because circumstances change. Once Covid passes…what’s next if the current restaurant ops/compensation model doesn’t change?)
2. The other elements (outside of labor) of a restaurant’s costs (the cut for the 'middleman' or 'middleperson') may just be too high in some areas – i.e., machinery/appliances, furniture, food supplies, containers, eating utensils, paper goods, etc. – or perhaps expensive real estate involved or high utilities, technology, marketing costs? Note: Some of these might be especially challenging in big cities with monopolized or high-priced options for location, food and supply delivery, not sure. But most should be manageable in a workable, honest business plan that considers all these costs up-front and ongoing.
3. Where do government regulations and expectations of local sales or income tax funding from people dining out come in? Could policies be changed to make those reasonable profit margins restaurateurs seek more attainable even with a living wage plus benefits being paid to all staff? Would service (and/or food quality) suffer if tipping was removed as an ‘expectation’ of what we are seeing recently - a false-funding, service charge mechanism apparently favored by many restaurant owners – who with their 10/15/20% or more automatic service charges increasingly added to the menu have simply placed even more of a burden on customers to achieve their bottom lines - instead of placing the responsibility where it belongs, i.e., on their own budgets?

This recipe is rotten, can we take a gamble to freshen it up?

Something just doesn’t work in our common current restaurant operating model and likely never has. Even without Covid impacts, take a look at the numbers of restaurants that survive 10 years from inception…always known to be abysmal. I decided to look it up (Restaurant failure rates recounted - Restaurantowner.com) since we’ve all heard the old, constantly circulating “90% of restaurants fail in 10 years” stories. In fact, at least according to this Restaurantowner.com-cited study by Cornell University and Michigan State University, the prospects for successful restaurants appear to be a bit better than you or me will experience re: winning at gambling – or at least, if you consider Roulette or visiting the Craps table in a typical casino. The Wheel of Fortune appears to be the closest casino option to 10-year restaurant survival odds, though even this game offers a bit better bet statistically at 26-39% chances of winning, according to the study: Casino games odds.

Whatever your view, we can all admit that sure, Covid has thrown a wrench in nearly every restaurant’s profitability, plans and pricing models. And many of us are tired of cooking at home all the time. And we want to support those local eateries we like so they're around for 10 years and hopefully more. But post-pandemic, what’s the best way to fix this problem going forward…can’t we do better for restaurant staff and wage fairness, while as happy consumers we reward successful restaurant operators as well, in a sensible society?

It seems that our alternative as diners wishing to institute and support a more workable, rational model, at least as I see it, is to raise our expectations of typical pricing for restaurants we like (or eat less?) - and stop patronizing those whose management don’t or won’t address all reasonable variables honestly and fairly. And of course stop supporting the restaurants that simply don’t provide a competitive or unique product or service or whatever else we expect from a dining experience. Or that should never have been opened in the first place but for their owners’ vanity, poor judgment or gambling on an idea without lasting quality or competitiveness or VALUE.

There it is! Problem solved. Econ 101 revisited, with a twist: Demand, Supply + Perceived Customer Value=Always Apply. At least in cases of optional purchases like Dining Out! We do have choices, after all…and it’s clear the tired American restaurant model is ripe for a reset. Let’s make the right moves for us and for society to help right our teetering restaurant industry!