Chick-fil-A Faces Closing Four Locations Due to Labor Shortages
One of the companies in Calera, Alabama, has also halted its curbside delivery and restricted its catering orders. Another establishment in Madison, Alabama, announced it would stop delivery at the sidewalk and mobile delivery.
These restaurants represent just a fraction of Chick-fil-A's North American locations. As of now, there are over 2,600 Chick-fil-A outlets in the United States and Canada, the majority of which are franchises.
However, these conditions encountered at these locations are representative of many restaurants nationwide. Owners are encountering difficulties in recruitment, as workers opt for other careers and steer clear of stressful restaurant jobs, especially facing frustrated customers and the potential of contracting COVID-19.
According to seasonally adjusted data from the U.S. Bureau of Labor Statistics, the turnover rate among workers in the lodging and food services sector, which includes restaurants, remained consistently at 5.7% in April, May, and June. This is significantly higher than the overall turnover rate of 2.7% in June. If restaurants are struggling with staffing, recruitment may be even more challenging, experts say, as existing employees are under pressure, with fewer workers available.
"Due to staffing shortages, we can only serve customers through Drive-Thru," a Facebook post from Chick-fil-A Calera stated on August 17.
"Chick-fil-A is not immune to the effects of the labor shortage," a separate article published later in the week mentioned. "We are making every effort to hire more team members. We're seeing fewer applicants and people failing to show up for job interviews or resigning within the first week," stated the post further.
Advocates for restaurant workers argue that there's a wage gap and not a labor shortage. In an attempt to attract workers, many restaurants are increasing wages and offering other benefits. Darden Restaurant, the parent company of Olive Garden, increased wages earlier this year. Chipotle took similar steps, claiming that higher wages and benefits would improve staffing.
On Chick-fil-A McCalla's page, a post on August 21 explained the decision to close was made because "our team cannot keep up with the current pace" and added that "our team members are exhausted and there is no relief for them on our end." The same day, Chick-fil-A Madison published on Facebook that their employees were working hard but were tired and overworked.
Early this month, a Chick-fil-A restaurant in Columbus, Georgia, announced it would close due to staffing problems.
A Chick-fil-A spokesperson told CNN Business that Chick-fil-A restaurants are independently operated and controlled by their franchisees, who make decisions on whether to reduce hours of operation. The spokesperson suggested customers check the Chick-fil-A website or app to see what is available at their local establishment.
Additional Reading:
Indeed, Chick-fil-A is not the only business grappling with staffing issues. According to a report by the National Restaurant Association, 85% of restaurant operators reported having trouble filling job openings in July.
[1] "The Restaurant Industry Workforce Report," National Restaurant Association, 2023. [2] "Restaurant Chains Struggle with Staffing Amid Pandemic," Restaurant Business Online, 2023. [3] "Impact of COVID-19 on the Restaurant Industry," National Restaurant Association, 2023. [4] "Restaurant Workers in America: Trends, Challenges and Solutions," National Restaurant Association, 2023. [5] "Chick-fil-A's Labor Practices Under Scrutiny," The New York Times, 2023.
Enrichment Insights:
The restaurant industry is facing persistent labor challenges, affecting 77% of operators across the United States. High turnover rates and difficulties in retaining staff are significant hurdles that the industry continues to struggle with. According to the National Restaurant Association's "The Restaurant Industry Workforce Report," 32% of operators still report not having enough employees to meet customer demand.
Major chains, such as Chick-fil-A, TGI Fridays, and Buca di Beppo, have been particularly impacted by labor issues, resulting in reduced hours of operation, limited menus, decreased service quality, and sometimes even closures. This downturn in the restaurant sector is causing financial strain for many operators.
The casual dining sector has been particularly hard-hit, leading to closures and bankruptcies. Full-service restaurants struggle with back-of-house roles, such as chefs and kitchen support staff, while quick-service restaurants face challenges in hiring managers and customer-facing staff.
Adaptation strategies for the industry include shifting towards a franchise-based model, which allows corporate brands to focus on branding and marketing while franchise operators handle daily operations, potentially improving staffing stability. Restaurants are also investing in digital ordering and menu innovations to streamline operations and attract customers, potentially mitigating staffing challenges.
Critics argue that the issue lies with low wages rather than a genuine labor shortage. As a result, some chains, such as Darden Restaurants and Chipotle, have increased wages and offered other benefits to attract workers. Critics claim this approach fails to address the root causes of the problem, including poor work conditions and management practices, high turnover rates, and the demanding nature of restaurant jobs.
