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Central Ohio restaurants face new pandemic related challenges

Rising food costs and a labor shortage pose new challenges for central Ohio’s restaurant industry.

COLUMBUS, Ohio — Central Ohio restaurants have been waiting for the day to remove the tape, signs and blockades between tables. With the health mandates lifted statewide, social distancing and separated tables are no longer required, which allows restaurants to open to full capacity.

The Happy Greek in the Short North has been operating with half capacity and patio space throughout the pandemic.

“Now that it’s lifted we are going to be using all of the tables, both sides, out on the patio, it’s a good thing,” said Phil Skunza, the manager at The Happy Greek. “If you’ve been vaccinated, it’s going to be up to whether or not you want to wear a mask when you come into the restaurant.”

The Ohio Restaurant Association says it’s a time to celebrate.

“Many of them were running at 75, 80, 85%,” said John Barker, the President and CEO of the Ohio Restaurant Association. “Being able to lift that and being able to get back to somewhat normal is a big step for the industry.”

More people in the seats should mean a higher margin in sales. But the food issue is facing more pandemic-related issues which will affect the bottom line, and it will eventually trickle down to the diner.

“Now dealing with rising commodity costs, that’s clearly an issue, and that’s in a lot of industries,” said Barker. “For us, it’s rising costs on things like chicken… and all the delivery costs and the shortage of packaging, and there are all sorts of pressures because of the pandemic, everything is not back to normal yet.”

The Happy Greek restaurant is seeing similar trends with food costs, and transportation. “We’ve seen an increase of about 20-30%,” said Skunza.

Skunza believes the diners will start seeing higher prices.

“When you get your bill back, depending on where you go, you are definitely going to see a percentage increase in costs,” said Barker. “Some of the costs will be passed on. We do think there will be inflation. You will see that in the restaurants.”

Barker said Ohio is seeing a labor shortage in the industry, citing employees leaving for other industries or because of childcare concerns.

“Obviously pay is an issue. Some of our really good operators are trying to figure out really good return to work incentives,” said Barker. “We think it’s going to take all summer, probably into the fall, until we make really good progress about this.”

Barker said Gov. Mike DeWine’s announcement before Memorial Day for the state to return to weekly work-search activities after it was waived during the pandemic. Ending federal pandemic assistance on June 26 will help employers hire people.

Skunza was fortunate enough to keep his staff throughout the pandemic but is in the market for a few new employees. He has heard the job market is tight.

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