Before the COVID-19 pandemic, Jay Deputy’s weekly routine involved dining out four or five times a week. Even though masks are off and restaurants are operating, he’s still spending more time at his home in North Wilmington.
He now dines out once a week, always making certain he can be seated away from high-traffic areas. A few times a week, he orders restaurant takeout food to enjoy at home.
“I’m more insular, more reflective of what I do,” he says. “I’m happy to work on making jewelry and listen to Mozart or watch a documentary on Netflix.”
More than one-third of diners remain hesitant to eat out, according to a survey by Morning Consult, which tracks consumer and economic trends. Still, polls indicate diners’ comfort level is on the upswing. As of the second week in February, 64% of Americans said they feel comfortable dining indoors at a restaurant, the highest rate since early December, when the omicron variant emerged.
The Delaware Restaurant Association (DRA) says the industry is starved for labor, with 4,300 fewer restaurant workers in the First State than in December 2019, when eateries employed 53,400 workers. Restaurateurs also are getting burned by inflation, currently at its highest rate in 40 years. Meat prices leapt 14% in the past year, according to the Bureau of Labor Statistics. Bringing home the bacon now costs 18% more; beef prices are up 19%.
“It’s dangerous to see restaurants open and think that everything is OK and profits have returned."Delaware Restaurant Association CEO Carrie Leishman,
A shortage of workers at meat-packing plants and facilities for processing dairy and produce are contributing to sporadic shortages of ingredients from chicken to heavy cream to strawberries. Plus, it’s harder to get goods from one place to another. The graying ranks of truck drivers—an average age of 60 when the pandemic was declared in 2020—was thinned by 60,000 early retirements.
“It’s dangerous to see restaurants open and think that everything is OK and profits have returned. Industry subsidies and relief programs in 2020 helped, but the reality for restaurants is that business conditions are more difficult now than a year ago during the height of the pandemic,” says Carrie Leishman, the association’s CEO.
A recent poll of restaurateurs reflects the industry’s ongoing challenges:
- 63% of operators say their businesses accumulated additional debt since the beginning of the pandemic in March 2020.
- 42% of operators say their restaurant fell behind on expenses.
- 80% of operators say their restaurant is less profitable now than it was before the pandemic.
- 74% reported slower customer traffic in 2021 than in 2019.
In the poll, 100% of business owners who received grants from the federal Restaurant Recovery Fund said the money made it more likely that they would be able to stay in business during the pandemic. The National Restaurant Association estimates the programs saved 2,000 jobs in Delaware. Industry advocates currently are pressing the Biden administration to replenish the $26.8 billion emergency fund but the president’s economic advisers are pushing back on the proposed $40-60 billion price tag.
Meanwhile, restaurateurs are serving up a complex recipe that includes reducing hours of operation, tweaking menus to cope with shortages of ingredients, and expanding outdoor dining options.
BBC Tavern and Grill in Greenville installed two indoor air-filtration systems, one that works with UV lights and a second system that harnesses ionization to kill germs. The restaurant equipped a covered outdoor patio with fire pits and electric heaters to accommodate patrons who prefer to dine outdoors where the risk of contracting the coronavirus is minimal. Restrooms are sanitized every 15 minutes.
Owner David Dietz has made changes to the menu to reflect food shortages and inflated prices, and will pass along some of those costs to customers when the spring menu is rolled out in April. BBC no longer serves its popular crab cakes. “To get the grade of crab we want, we would have to charge $32 for a crab cake sandwich,” he says. “We just can’t do that.”
He also has grappled with higher prices on items patrons don’t see on their plates. “Gloves used to be $19 a case. They went as high as $90 a case and we were using more gloves than ever,” he says.
“We’re paying dishwashers $16 an hour, cooks as high as $22 an hour, and our managers are making more than ever. If I don’t pay them, somebody else will.”BBC Tavern and Grill owner David Ditz
The cost of gloves has come down. The cost of labor continues to rise.
“We’re paying dishwashers $16 an hour, cooks as high as $22 an hour, and our managers are making more than ever. If I don’t pay them, somebody else will,” Dietz says.
Christina Kelly, who works in sales, says restaurants play an essential role in nurturing relationships with clients. “My livelihood depends on working closely people and I have to meet in person to do that,” she says.
She says diners are willing to put up with a little inconvenience to ensure a safe experience. When Kelly met a friend with underlying health problems for a bite to eat, they bundled up in hats and coats and brought blankets so they could dine outdoors, where the risk of COVID is extremely low.
After a two-year pandemic, Kelly says patrons don’t mind if glitches in the supply chain have knocked their favorite dishes off the menu or it takes a few extra minutes for their food to arrive. “We all know that restaurants are having problems with staffing and people are used to waiting a little longer,” she says.
Throughout the state, restaurateurs are toasting a new revenue stream, the passage of a bill that makes permanent a pandemic measure permitting to-go cocktails and other adult beverages. Any establishment with a liquor license can sell alcohol for takeout, curbside or drive-thru with the purchase of at least $10 in food.
Despite that boost, a number of restaurateurs view the pandemic as a good time to turn over the reins to someone else. ln Rehoboth, longtime restaurateurs Bill and Lois Klemkowsi turned off the burners at Jake’s Seafood House, a beach staple for more than 30 years. Agave Mexican Restaurant, whose compact Lewes location draws long lines of diners, took over Jake’s space, which can comfortably seat 300.
In Fenwick Island, Matt Kern, a James Beard-nominated chef, and his wife Karen are the new owners of One Coastal, a farm-fresh restaurant with a devoted following. The founders, Scott and Carlie Carey, were frustrated by staff shortages and decided to move on. Friends connected the couples in striking an amicable deal. One Coastal closed in January for a minor renovation and began serving the first week in February.
Elizabeth and Vince Moro, longtime patrons of Centreville Café, are now operating the bistro, founded by their friend Susan Teiser in 2003. Although they hadn’t worked in hospitality before, Elizabeth says they were up for the challenge.
“We’ve managed people, we’ve managed businesses, and we love to cook,” she says.
Although they haven’t been impacted by the labor shortage, they are feeling the effect of breaks in the supply chain. Part of their game plan is to reduce their environmental impact by minimizing single-use plastic.
“I found a little sandwich box that is green. But when I went back to order more, it was gone,” she says. “Trying to find containers for soup? Impossible.”
They’ve juggled food shortages, too, including a regular customer’s favorite Chai tea. When salad dressings weren’t available, they made their own. Ditto for quinoa. “It tastes better and it costs less,” she says.
“I found a little sandwich box that is green. But when I went back to order more, it was gone. Trying to find containers for soup? Impossible."Elizabeth Moro, Centreville Café,
The Moros also are developing new revenue streams, such as farm-to-table dinners. They are contemplating seeking a liquor license. This spring, they will plant tomatoes and herbs behind café. They’ve established a small, in-house market where they sell milk, eggs, cheese, and other staples. “It’s a convenience for our customers and it allows us to keep fresh products moving,” she says.
Smitty McGee’s, a raw bar, restaurant and sports lounge in Selbyville, closed its doors early in February after 33 years. The Irish-themed eatery announced its departure on Facebook, evoking responses ranging from nostalgic reminiscences of Smitty’s wings, to anger from customers stuck with worthless gift cards. The location won’t be empty for long. Fins Ale House will debut in April.
As for Deputy, he recently ventured out to a soiree where guests presented vaccine cards and had their temperatures taken at the door. He often patronizes El Camino in North Wilmington, requesting seating in the bar area, where plexiglass barriers separate booths. He calls ahead to make certain a booth is available.
“If a restaurant has open seating, I forego eating there. I err on the side of caution,” he says.
