The leisure and hospitality industries have 1.5 million fewer employees than they did before the pandemic began, according to the U.S. Bureau of Labor Statistics’ (BLS) February 2022 employment report, released today.
Of those 1.5 million workers, 824,000 of them have come out of the bar and restaurant industry, including brewery taprooms, according to the Independent Restaurant Coalition (IRC). The remaining 676,000 are from the arts, entertainment and recreation industries, an IRC spokesperson told Brewbound.
Staffing shortages have caused breweries to cut back on operating hours across the country. Phoenix, Arizona-base SunUp Brewing announced last month it was closing its taproom indefinitely due to a lack of workers to staff it.
“Unfortunately we need to announce that our taproom is closed due to staffing issues,” the brewery wrote on Facebook. “However, you can still purchase our beer from local retailers such as Total Wine & More and BevMo. We appreciate your understanding in this difficult time.”
This weekend, SunUp will open briefly for a 50% off promotion on draft beer to deplete the remaining taproom supply.
Earlier this week, Woodinville, Washington-based Good Brewing Co. posted on social media that it was forced to close its brewpub for the day and limit its menu at another location, citing staffing shortages as the reason. Last month, Kenosha, Wisconsin-based R’Noggin Brewing had to close five hours early on a Friday due to an unforeseen staff shortage.
Staff shortages are just one challenge the bar and restaurant industry has faced since the pandemic began nearly two years ago and forced them to reinvent business models and operate at reduced capacity under shifting public health policies.
“Independent restaurants used to be one of America’s largest employers, and we have a long way to go to fully recover from the pandemic and record inflation,” IRC executive director Erika Polmar said in a press release.
The IRC spearheaded a letter writing campaign to President Joe Biden this week, urging him to take action to replenish the Restaurant Revitalization Fund (RRF). A coalition of beverage-alcohol industry trade groups – including the Brewers Association, Beer Institute and National Beer Wholesalers Association – sent similar letters during a national day of action on February 24.
“Without additional relief, many hospitality businesses may be forced to close their doors permanently,” the coalition wrote. “We can’t allow these businesses to shutter. From local farms to food suppliers, breweries, distilleries and beverage alcohol distributors, local restaurants support much-needed jobs in our communities and contribute to vibrant main streets across the country.”
The RRF was allotted $28.6 billion when it went into effect in May 2021, and received applications from 372,000 hospitality businesses for more than $76 billion in funds. Bills to replenish the fund were introduced in the U.S. Senate (S.2091) and House of Representatives (H.R.3807) in June 2021, but neither has made it out of committee.
According to the IRC, 49% of businesses that did not receive grants from the RRF laid off workers during the omicron surge, more than the 33% of businesses that received grants and were forced to take the same action. Nearly half (42%) of businesses that didn’t receive grants “are in danger of filing for or have filed for bankruptcy,” compared to one-fifth of those who received funds and are in the same situation.