Fearing more losses, Michigan restaurants hit pause as COVID strikes staff

Staff at the Green Well in Grand Rapids will get two paid weeks off per year starting in 2022. That one way the restaurant management group is trying to offer work-life balance in an industry that continues to struggle. (Submitted photo)
By Paula Gardner (Bridge Michigan)
Exhaustion. Resources stretched thin, just like staffing. Uncertainty.
Michigan restaurants fighting to get through the pandemic look back on nearly two years of disruption that, if they鈥檝e survived, took them to the brink.
Now they鈥檙e starting 2022 with not just more of the same: Thanks to聽record-high cases of coronavirus, their outlook is worse.
Temporary closures are rolling across the industry as owners try to both protect staff and recognize that infections among workers threaten levels of absenteeism that make their regular operations untenable.
Some are adjusting their menus so they can run with fewer workers. Others are closing short-term, trying to control some aspect of the fifth wave of the pandemic.
Next up could come more permanent closures, owners warn, depending on how much further the variant spreads 鈥 and, as a result, cuts into already-thin revenue.
鈥淯nfortunately, you’re going to see restaurants struggle here in the first quarter, and some are just not going to make it, because there’s no more safety net,鈥 said James Berg, managing partner of Essence Restaurant Group in Grand Rapids.
鈥淎nd it’s not their fault,鈥 he said. 鈥淭here’s nothing they did wrong.鈥
The highly contagious variant took hold rapidly in southeast Michigan in the days before Christmas, before spreading across the state as people gathered socially over the holidays.
Now the state restaurants enter what a slow season for many of them, struggling to anticipate what the pandemic will mean for them over the next month, much less longer. After 22 months that included mandated closures and capacity restrictions, staffing shortages and聽rising costs聽that added, for example,聽25 percent to the cost of beef,聽the uncertainty is unsettling.
Omicron spread 鈥渋s real and everywhere,鈥 said Justin Winslow, president and CEO of the Michigan Restaurant & Lodging Association.
Solutions are difficult, he added, and each restaurant owner is navigating it on his or her own.
鈥淲ill they sit out the week while they get their staff healthy? Will they sit out the month while they know that it’s surging in Michigan?鈥 Winslow said. 鈥淥r will they sit it out indefinitely because the challenges of operating a restaurant right now are too much?鈥
Waves of restaurants, many in the southern portion of the state, seem to be announcing temporary closures as they balance sales goals with potential staff shortages due to the virus. Selden Standard in Detroit, Hamburger Mary in Grand Rapids, Paesano Restaurant and Wine Bar in Ann Arbor and Stober Bar in Lansing all announced temporary closures on social media.
At聽Cultivate Coffee & Tap House聽in Ypsilanti, owners Matt and Sara Demorest announced on Christmas Eve that it would close through January 3, missing its biggest sales week of the year.
鈥淭his new variant is just so obviously different as far as its spread that we didn’t see a way forward that did not include isolating our team from each other and waiting it out,鈥 Sara Demorest told Bridge.
Staff went unpaid, a sacrifice that Demorest said the workers were all willing to make. And among the costs were perishable foods that couldn鈥檛 be donated, something that still weighs on the owners.
鈥淲e are not in a position to be wasteful like that and survive,鈥 Demorest said.
Adding to some confusion about staffing levels are changes to guidelines for both exposure to the virus and positive tests. The U.S. Centers for Disease Control and Prevention recently dropped the number of days of isolation for people testing positive from 10 to five. People who are exposed but without symptoms can, according to guidelines, still work. But testing availability has been limited.
鈥淭here is so much confusion about what is the 鈥榬ight鈥 thing to do,鈥 Demorest said. 鈥淭he new CDC rules 鈥 do not match up with what we have come to expect as safe.鈥
Customer reaction to omicron so far has varied widely, Winslow said. Demand in many areas remained high at year-end after a dip due to the delta variant in the fall.
鈥淭here’s still a portion of the population that I think is a distinct minority at this point that is hyper cautious and minimizing public exposure,鈥 he said. But others, he said, seem to want to 鈥渕ove on鈥 from the virus, and are going out.
In Northern Michigan, heavy snowfall this week keeps more tourists arriving to ski and snowmobile. Gary Kosch, owner of CRAVE pub in Gaylord and other restaurants there and in Kalkaska, said his properties had a record week at year-end over 2019.
鈥淚 have not noticed a downturn in sales because of COVID,鈥 Kosch said.
However, the virus has reached staff. One of Kosch restaurants closed last week when two managers tested positive, but Kosch said no one else did, so it reopened within two days. So far, he said, widespread staff illness has not affected his operations.
He can鈥檛 predict what may come next.
鈥淎ny plan you put into place, it gets changed,鈥 Kosch said. 鈥淩ight now, we鈥檙e just trying to get through the winter.鈥
That the goal for Berg, of Essence Restaurant Group in Grand Rapids, too.
Berg recently announced plans to close his restaurants for two weeks every year to create what he calls a 鈥渕ore attractive work culture鈥 for an industry that lost workers to other types of work with less stress.
As a result, Bistro Bella Vita in downtown Grand Rapids and Green Well in the East Hills neighborhood of the city closed for the first week of January and will close again for the first week of July.
By then, Berg hopes that Grove, the group fine dining restaurant, will reopen. It been closed because of the pandemic, and plans to reopen have been delayed from fall 2021 until spring, due to omicron.
The weeklong closing came just before a massive snowstorm, Berg said, so the revenue impact won鈥檛 be great. Ultimately, he said, 鈥渋t buys us time鈥 after what he described as 鈥渁 tone of transmission prior to New Year Eve.鈥
Still, he said, he worries for the industry, particularly the independent owners who already may have burned through Paycheck Protection Program loans and who, as a group, rarely have deep cash reserves.
Over 100,000 restaurants and bars received vital protections from the $28.6 billion Restaurant Revitalization Fund included in the American Rescue Plan, according to the national Independent Restaurant Coalition. However, it said, over 177,000 applicants were denied funding.
The nationwide group urged federal officials on Friday to add more money to the fund.
鈥淩estaurants and bars are months beyond struggling, they are dying in plain sight,鈥澛燼ccording to a letter聽from the coalition to Congressional leaders.
Berg agrees that there’s a need.
鈥淭here’s no help anymore, even though some of the worst of it’s happening now to us,鈥 he said. 鈥淲e鈥檙e just numb.鈥
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