Workforce Shortages Abound But Why?

Oregon hospitality positions are coming back online but where are the workers?

FOR IMMEDIATE RELEASE: March 9, 2021
UPDATE: 3.17.21 - Response from the Oregon Employment Department 

Contact:      
Jason Brandt, President & CEO, ORLA      
503.302.5060 | JBrandt@OregonRLA.org

Wilsonville, OR– According to the Oregon Employment Department, approximately 136,000 Oregonians are actively looking for work. Even so, hospitality operators are having great difficulty finding applicants who follow through and take open positions within restaurant and lodging establishments in regions across the state.

As vaccination rates continue to improve with more supply on its way, hospitality businesses are looking ahead to the busy Spring and Summer seasons with plans to bring some of the lost jobs in the industry back online. In a March article available on qualityinfo.org, regional economist Guy Tauer of the Oregon Employment Department describes the drop off experienced in the hospitality industry. “From December 2019 to December 2020 the leisure and hospitality sector shed 38.7% of payroll employment, compared with a loss of 9.1% across all Oregon industries.”

With such a steep dive in employment numbers and substantially high levels of Oregonians searching for work, operators are expressing unexpected challenges in identifying their next teammates for crucial roles in their businesses.

“Oregon’s restaurant and lodging industries get a bad rap due to the size and scope of entry level positions available within our industry,” said Jason Brandt, President & CEO of the Oregon Restaurant & Lodging Association.“But make no mistake – advancement opportunities in many companies across our industry are considerable for those pursuing careers beyond desired part-time work and those career opportunities can come with six figure salaries for managers in both restaurant and lodging settings.”

Outside of career opportunities, the hospitality industry has long been acknowledged as America’s training ground where our youth and those returning to the world of work can hone their interpersonal skills. “Many Oregonians, including myself, started their career working in restaurants,” said Tauer. “Those skills, such as getting along with coworkers, showing up ready and able to put in a full shift, providing quality customer service and countless more, are essential and transfer to many other industries and jobs.”

You can view Guy Tauer’s full article on the Oregon Employment Department website.

Recently the Oregon Restaurant & Lodging Association reached out broadly to industry operators across the state to learn more about their challenges recruiting staff. The response was considerable. A small collection of responses from operators across Oregon regarding their workforce shortage challenges are noted below:

“Hood River is a seasonal town. Our spring staff-up for restaurants is always a challenge. This year, however, is unlike any other. On top of the difficulties from COVID closures we face scarce options for capable hires. Our ability to recover, ultimately to survive this past year is at grave risk.” 
- Ben Stenn, Celilo Restaurant & Bar, Hood River

“It has always been more difficult to recruit kitchen staff but now it's harder than ever. Even with a 50/50 tip split between front and back-of-the-house providing $25-$30/hr., applicants are few and far between. We have had a number of applicants tell us they are only applying so they can stay on unemployment. I feel like there needs to be more checks and balances to get people back to work and off unemployment as jobs are becoming available again.” 
- Colin Rath, Migration Brewing Co., Portland

“Pig & Turnip as well as the business owners I have talked to recently are all struggling to find employees ready and willing to work. We currently have several job postings, and instead of the 75+ applications we normally get for a job, we have received two legitimate applications over the span of 12 days.” 
- Natalie Sheild, Sheild Catering and Pig & Turnip, Springfield

“For the first time, in 27 years, I have positions in housekeeping and the front desk unfilled for almost a year. Never have I spent so much on ‘Help Wanted’ ads.” 
- Peggy Backholm, Bandon Inn, Bandon

“Unemployment benefits and government stipends have made it excruciatingly difficult to rehire and hire people to work for our restaurants. Small, independently owned businesses like ours strive to pay competitively and continue to do so despite constraints mandates have put on how we can operate our restaurants. These difficulties make me fear for the likelihood of survival for in-state restaurants moving forward.” 
- Andy Rhine, Cascade Lakes Brewing Co., Bend

“Like many of our colleagues in hospitality, we are currently experiencing some new challenges with recruiting. There were a number of individuals that switched industries during the early part of the pandemic when it became clear that it was a crisis that was not going to resolve quickly.” 
- Cari Shafer, Oxford Suites, Pendleton and Hermiston

“We have been advertising available jobs since we opened again June 2020.  It makes no sense that the Lincoln County unemployment rate is still high as most employers in the area are currently advertising for available work opportunities. This is the worst we have seen in 23+ years and we will have to shutter room inventory this summer if we are not able to fill available positions.” 
- Drew Roslund, Be Our Guest, Inc. and Overleaf Lodge & Spa, Yachats

For a full list of responses from industry operators around the state (sorted by region), see below.

“It is clear employers are anxious to welcome back new and former employees as the industry works to fill everything from low barrier to specialized positions,” said Wendy Popkin, Executive Director of the Oregon Hospitality Foundation charged with the advancement of careers in hospitality. “The challenge seems to be in getting the word out about available jobs and matching those opportunities to job seekers. Hopefully the latest job availability intelligence will help our industry continue to strengthen its relationship with the Oregon Employment Department as we seek to facilitate more connections between job seekers and growing opportunity in our state’s hospitality industry.”

For more information on the efforts of the Oregon Restaurant & Lodging Association please visit OregonRLA.org. 

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The Oregon Restaurant & Lodging Association is the leading business association for the foodservice and lodging industry in Oregon, which before COVID-19 provided over 180,000 paychecks to working Oregonians. 

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Hospitality Industry Responses on Workforce Shortages (by Region)

HOOD RIVER / THE GORGE

“Yes, here in Hood River we are experiencing a hiring frenzy. Combine that with a workforce that can’t afford to live in Hood River and workforce that has been able to live off unemployment assistance and you have a recipe for disaster. Basically, while I appreciate the  efforts, ‘the wheels of government turn slowly.’ While they are debating the newest relief package, employers are starting to look for new hires. What we need now is a program that will wean the labor pool off the government unemployment and get them back out there applying for jobs."
- Andrew McElderry, Skylight Entertainment Inc, DBA Andrews Pizza-Skylight Theater-Hood River Cinemas, Hood River

“Solstice is both feeling the pain of labor shortages for both the present level of business and for planning for the future. We currently cannot staff to the latest capacity allowances. Solstice needs guests in seats to recover from the last 12 months of revenue loss. We are very concerned that we will not be able to staff to our annual seasonal ramp up. Our survival is dependent on the anticipated Summer business. If we do not capture the business that is here in the summer months, we nervously enter the slow season with no cash reserves. This would leave us dependent on government subsidies, which we assume will have dried up by then. 
Over the last 12 months many of our tenured staff have decided to leave the hospitality business to seek out 9 to 5 jobs. In addition to those that have entirely left the sector, those who are currently unemployed are receiving higher government subsidized incentives to stay out of the workforce.”
- Aaron Baumhackl, Solstice Wood Fire Cafe and Bar, Hood River

“It’s a frustrating situation when you actually hire a cook and they don’t even show up (or call) on their start date. If we don’t have a cook, we don’t have a restaurant.”
- Leslie VanSickle, The Dalles Country Club, The Dalles

“Hood River is a seasonal town. Our spring staff-up for restaurants is always a challenge. This year, however, is unlike any other. On top of the difficulties from COVID closures we face scarce options for capable hires. Our ability to recover, ultimately to survive this past year is at grave risk.” 
- Ben Stenn, Celilo Restaurant & Bar, Hood River

"We are only able to offer limited days and hours due to the shortage of applicants for all of our kitchen staffing needs. Until we can hire more staff, we are unable to fill our current reduced seating capacity and on line orders due to this shortage, as well."
- Lisa Merkin, Pub General Manager, Full Sail Brewing Company

OREGON COAST

“We are definitely seeing an increased difficulty filling our positions… I fear we are creating a culture unreasonably dependent on assistance when the means to support themselves is available. The drain on those of us struggling to maintain businesses may very well crush so many that when people finally have to return to work, they may find they have waited too long." 
- Sharleen Hughes, Inn at Lincoln City, Depoe Bay

“Finding quality employees on the coast is always a challenge but even more so now. With shuttered restaurants reopening, it has increased the challenge in a super tight labor force.” 
- Frank Squillo, Wanda’s Cafe + Bakery, Nehalem

“I hope the Legislature will look at the honest intentions of employers to run their business safely in contrast to those who are abusing government programs.” 
- Mark Tolan, Seaside Vacation Homes, Seaside

“Staffing shortages in our market is making operating our business effectively increasingly difficult. Affordable and available housing is one of the biggest challenges facing our industry as we seek to attract and retain employees.”
- Diana Steinman, VIP Hospitality Group, Lincoln City

[click "Read More" to view entire list of responses]

“2021 is the greatest employment crisis that I have seen since entering the Oregon Coast hospitality industry in 1996. We have had employment positions advertised and unfilled since last summer. We will not be able to operate at full occupancy this upcoming summer if we cannot fill our needed positions. All of our current staff are wearing many different hats and working in multiple departments in order to keep the doors open and ensuring our guests have the best experience. I feel that burnout is already happening before our busy season. Also, the extra federal unemployment seems to incentivize some people to stay on the unemployment rolls.”
- Heather Tincher, Overleaf Lodge & Spa, Yachats

“One of our biggest challenges in finding qualified people to work during the pandemic is many of them feel unsafe working in close proximity with our customers. Unfortunately, restaurant staff are not a priority group to receive the vaccine–which is surprising, especially since customers are maskless when seated at their table, which puts our staff at further risk of exposure to Covid-19. The other challenge we face is our employees want to work in a place where they have access to affordable healthcare and being a small business, this is something we are not able to offer them at this time.”
- Lauree Serang, Harbor Light Restaurant, Reedsport

“Our workforce availability in Bandon, Oregon is simply nonexistent!”
- Dan Barnett, Billy Smoothboar’s, Bandon

“We have been advertising available jobs since we opened again June 2020.  It makes no sense that the Lincoln County unemployment rate is still high as most employers in the area are currently advertising for available work opportunities. This is the worst we have seen in 23+ years and we will have to shutter room inventory this summer if we are not able to fill available positions.” 
- Drew Roslund, Be Our Guest, Inc. and Overleaf Lodge & Spa, Yachats

“For the first time, in 27 years, I have positions in housekeeping and the front desk unfilled for almost a year. Never have I spent so much on ‘Help Wanted’ ads.” 
- Peggy Backholm, Bandon Inn, Bandon

"We are currently looking for housekeepers, and front desk staff, and just filled a bookkeeping position.  Unfortunately, we got no responses back for our bookkeeping position from anyone in the area with actual bookkeeping and Quickbooks experience, so we have decided to train and educate one or our existing staff members. We are spending money to advertise on Indeed, Craigslist, and Facebook, and currently doing interviews by Zoom and in person. Many of our initial responses don’t even bother to show up for interviews. While there is no way for us to be certain, I believe many of these initial responses are for unemployment purposes. We have had much better success rates, and responses in the past from those who showed interest in a position than we are currently experiencing."
- Ron Moore, Hoagland Properties, Florence


PORTLAND METRO, WASHINGTON & CLACKAMAS COUNTY 

“We can’t find kitchen staff and that is delaying our reopening. We have many advertisements for help and pay well with benefits.”
- Doug Lee, Industry / Jefe / Holy Taco/ Saint Irene's, Lake Oswego

“We have been trying to hire a cook for about a month. We received 15 resumes/applications from our ad on Indeed. Only one applicant returned our call and was hired. Six of the applicants did not answer or return the call/message. Other applicants were either way over-qualified or had no relevant experience.” 
- Dani Rosendahl, The Pit Stop Sports Bar & BBQ Grill, Beaverton

“Many of our available work force options have simply chosen other industries that can offer consistent paychecks. This will leave the entire industry working on changing service standards and style I imagine due to the lack of labor availability.”
- Kathryn Summers, Homewood Suites Portland Airport, Portland

“We’re trying to reopen. Most of the staff we had a year ago has moved on to other jobs out of the industry. We’re taking applications through many resources. Poached has produced the most. Social media has produced none.” 
- Dan Lenzen, Venture Hospitality and Real Estate

“By the first week of April last year we were trying to bring staff back, but we just couldn't compete with the generous unemployment benefits. Running ads on Poached and Craig's List brought some resumes, but few would actually accept a job once offered. With more unemployment money coming we don't see an end to staffing issues.”  
- Steve Moore, 13 Virtues Brewing and Philadelphia’s Steaks & Hoagies, Portland

“We have great jobs with excellent career potential waiting to be filled but no one is applying. Oregon’s workforce seems to be incentivized not to work since they can make as much – or sometimes more – on unemployment.”
- Becky Fields, Radisson Hotel Portland Airport, Portland

“We are starting to hire back Restaurant workers and Brewery Production employees. We're finding the talent pool to be strong in these areas. We hope to have a get back towards normal year.”
- John Harris, Ecliptic Brewing, Portland

“We have consistently placed job ads in multiple locations during the past 10 months for multiple positions, especially Property Care jobs in housekeeping and the laundry room and we see a trickle of applicants. Our employees all earn $15+/hour with medical and dental benefits for FT (32 or more hours a week), PTO, 401K, mileage reimbursed and bonuses and incentives. It is frustrating.”
- Betsy LaBarge, Mt. Hood Vacation Rentals, Welches 

“We have lost staff to Covid concerns, childcare realities, and sometimes simply unemployment benefits. Who can blame them? How could someone put themselves at risk or risk a steady unemployment check for a job that could be squeezed tomorrow or shut down in two weeks?”
- Brad McCray, Candy/Sanctuary, Portland

“It has always been more difficult to recruit kitchen staff but now it's harder than ever. Even with a 50/50 tip split between front and back-of-the-house providing $25-$30/hr., applicants are few and far between. We have had a number of applicants tell us they are only applying so they can stay on unemployment. I feel like there needs to be more checks and balances to get people back to work and off unemployment as jobs are becoming available again.” 
- Colin Rath, Migration Brewing Co., Portland

"It is a very challenging time for everyone and all businesses right now!  We are finding it extremely hard to get people to come to work because they can sit home and  collect unemployment  with the additional money from the government!   There are so many opportunities for people to go to work, but the government wants to give them free money to sit home and do nothing!  We pay 12.00 an hour for servers and they get tips 50.00 - 100.00 a day!  We pay 17.50 an hour for cooks.  I have a Cooks position, Server position and Dishwasher position open and NO Applicants!"
- Linda Parsons, The Country Restaurant & Lounge


WILLAMETTE VALLEY

“We are also feeling the shortage of more experienced workers in the workforce. Although many of our staff have been called back, we’re seeing some employees have gotten jobs in other industries that have not been as hard hit by the pandemic and some waiting things out while on extended unemployment benefits.” 
- Mike Ritter, Ritter’s Housemade Foods, Salem

“Because of our proximity to a University, for most of the past decade we've seldom had to advertise for positions. In the past two years even before Covid we've seen a real difference in the quantity of applicants. We have begun to advertise through multiple sources with minimal success. There seems to be more work-hour or day restrictions for the job candidates that we do get. We are the lucky ones in our system but it's still a struggle.”
- Dennis A. Abreu, Namaste Cuisine, LLC, DBA: Café Yumm, Corvallis

“Yes, we have been having issues hiring. All of our companies try to stay competitive and pay over minimum wage. However, with the current unemployment system we will get 100’s of applications for a single position. When we call for first interviews, we get about a 1% return rate on answered calls or call backs. Prior to this pandemic we had about a 50% conversion rate. I think the combination of extended unemployment benefits and the fear of working with the public is hindering our ability to meet the growing requirements of room rentals.”
- Sarah Smith, InnCline Management, Eugene

“We, like many small business restaurant owners, are also experiencing difficulty finding employees who are willing to come to work since they receive as much or more in employment benefits sitting at home than coming to work. It was our understanding that the extra $300 to $400 was to help during the time when businesses were shut down due to Covid and there were no jobs available for them. Now, when businesses are finally able to open, they are unwilling to return to work because they are still receiving the bonuses. Oregon restaurants have suffered for almost a year due to the mandated closures and now we face the additional challenge of finding employees willing to work.”
- Richard Becker, Hole in the Wall BBQ, Springfield and Eugene

“Yes, we are very challenged with staying fully staffed!  As you well know, the latest stimulus bill being negotiated in DC will be extending the weekly $300 federal benefit until September will only make matters worse! Ridiculous and sad!”
- Chad West, Westraunt Concepts Inc., Eugene

“In my 45 plus years in this industry, I have never experienced anything like this. Facebook ads, Craigslist, Indeed, our websites. We are hoping to reopen April 1, 2021, but we have received zero responses to our ads. With all of the other significant challenges facing our industry, this is one we did not anticipate.”
- Patrick S. McCallum, Mac’s Custom Catering, Mac’s Restaurant & Nightclub, Eugene

“Due to the money that laid off workers are receiving on unemployment we have not been able to bring back needed employees because they would rather stay on unemployment. We are currently running an ad for cooks and after 3 days don’t have an applicant. We are willing to train people with little or no experience. We are overworking the employees that came back. We are looking at the prospect of closing a couple days per work. We have always been open 7 days per week. The state is wasting a lot of money to pay people to not work and killing businesses at the same time.”
- Paul Dowdy, Terry’s Diner, Eugene

“Pig & Turnip as well as the business owners I have talked to recently are all struggling to find employees ready and willing to work. We currently have several job postings, and instead of the 75+ applications we normally get for a job, we have received two legitimate applications over the span of 12 days.” 
- Natalie Sheild, Sheild Catering and Pig & Turnip, Springfield


EASTERN OREGON

"One word....disappointed...either closed due to Covid regulations and/or the lack of employees to re-open. How can we be so blind to the fact that offering people free money to stay home will do exactly that. Nothing is free, let's put America back to work!”
- Stuart Rice, Midway Bar & Grill, Hermiston

“Staff are largely unwilling to return to work because of unemployment enhancements that are inducing staff to stay unemployed. As well, the on again/off again two-week cycle is playing havoc with staff’s personal lives, such as securing childcare, consequently many are choosing to leave our industry. This staff shortage has become a greater challenge to our business than the burden of the covid pandemic, loss of revenue and increases costs combined.”
- Barbara Sidway, Geiser Grand Hotel, Baker City

“I placed an ad in our local paper for 3 weeks, NO ONE applied. We can't get help and may have to close some of our rooms due to no help.”
- Cheryl Baker, Condon Motel, Condon

“Like many of our colleagues in hospitality, we are currently experiencing some new challenges with recruiting. There were a number of individuals that switched industries during the early part of the pandemic when it became clear that it was a crisis that was not going to resolve quickly.” 
- Cari Shafer, Oxford Suites, Pendleton and Hermiston


CENTRAL OREGON

“In the summer of 2020 we really struggled to hire people to work, in the beginning we attributed this to the unemployment benefits but as time went on found that we have lost a good deal of our typical workforce pool.  A lot of our workforce pool are moms that have kids in school, but they were unable to work due to their kids being home because schools have been closed during the pandemic. As we ramp up for the 2021 busy season and anticipate returning to normal business and staffing, we continue to struggle to find people who will work. When brining back food and beverage employees the common response was ‘we are getting out of the industry’.  This seems to be a result of the multiple closures we have had as a restaurant operator. The hotel side of our business is even having a tough time finding qualified candidates for some of our more technical positions despite paying very well for the Central Oregon area.”
- David Lenke, Riverhouse on the Deschutes, Bend

“Due to Governor Brown’s unnecessary and extreme lockdowns, our industry has been debilitated. We are having to close multiple days a week because we cannot find employees who want to work, our expenses, however, stay the same. We need the State of Oregon to step up and offer back-to-work cash bonuses like they did in Idaho to help our economy and our industry rebound.”
- Lisa Lumsden, Flatbread Pizza, Bend

“Sadly, before COVID we were short staffed, but since March of 2020 it has been extremely difficult to hire and keep our current working crew safe and happy at work. There is a huge demand for food in this town and we will post ads and often get zero resumes. We hoped this would get better a few months ago but has only gotten worse. Bend can be a hard place to afford to live but we sure do need service folks applying!”
- Jessica Keating, The Sparrow Bakery, Bend

“I have reached out to many people who had previously applied for work prior to Covid-19 but many said they were making too much on unemployment to accept a position.” 
- Brian Earls, Highlander Motel & RV Park, La Pine

“Unemployment benefits and government stipends have made it excruciatingly difficult to rehire and hire people to work for our restaurants. Small, independently owned businesses like ours strive to pay competitively and continue to do so despite constraints mandates have put on how we can operate our restaurants. These difficulties make me fear for the likelihood of survival for in-state restaurants moving forward.” 
- Andy Rhine, Cascade Lakes Brewing Co., Bend


SOUTHERN OREGON

“Our biggest challenge has been related to the lack of childcare options available in our area. We have current associates who want to work more and can’t because they need to care for their kids. Schools opening up has helped, but many workers are having to make difficult choices. We also see a similar issue on the horizon as spring break is coming up and we are not too far away from summer vacation.”
- Allen Pike, Hampton Inn, Roseburg

"We are hopeful that things will improve but are doing our best to prepare for the worst. Not enough help in a busy restaurant is an excruciating experience for the guest and the workers."
- George Gregory, Lake of the Woods Resort, Klamath Falls

“Our community is facing staffing challenges unlike we have ever seen before; employees are up front with us that they do not want to return to work or can only work a very limited schedule as they do not want to interrupt their unemployment benefits. The result of this is forcing our operation to keep our restaurant closed for entire days and during certain meal periods, turning away group catering business, keeping rooms out of order that we would ordinarily rent out as we have no staff to clean them or do the laundry, the golf course may have to limit hours of operation and beverage service on the course.  It is looking to be one of the most difficult busy seasons we have ever faced.”
- Christy Mullinix, Running Y Ranch Resort, Klamath Falls

“Staffing over the last five years has become exponentially more difficult than in the past. Not only in filling entry level positions but finding honest, high quality hospitality professionals to provide the kind of service and attention to detail most, if not all of us, cherish. With the addition of the pandemic, we’ve experienced over the past year staffing has become even more difficult for a couple of reasons. The first is you are now dealing with the fear of becoming sick due to workplace exposure and bringing the Coronavirus home to loved ones. In addition, unemployment compensation has been and continues to pay furloughed workers more money than they would make by coming to work.”
- Doug Bradley, Kensington Investment Group, Grants Pass

“Our B&B has been closed all winter because we have been unable to find employees to help us. Usually, we are open all year. This has been very difficult because we rely on our revenue from the B&B to get through the winter months when the wine tasting room is very slow and has been shut down a lot this year due to Covid.”  
- Terri Delfino, Delfino Vineyards & Winery, Roseburg

“We are locally owned and made sure that our employees are local as well.  When the COVID-19 Pandemic hit us exactly 3 months after we purchased the restaurant, we were shut down for 3 months and then reopened for 5 months with extreme stress of when the next shutdown was going to be. Then November came with new mandates and capacity restrictions and we had to make the hard decision to close because the new mandates didn't sustain cash flow coming in to pay the bills. We paid our rent until December and then were evicted from our building for non-payment of rent for January and February. Commercial tenants for small businesses were not protected by our government for their rent until March 8th and there are restrictions on that as well. We will be reopening but we have to see where the end of all this is going to be.”
- Aimee Jones, Blended Main Street Eatery, LLC, Myrtle Creek

"For a few years now, workforce shortages have been exacerbated by a heavy influx of a growing Hemp/Marijuana industry. Now, when we are in the middle of a pandemic, our government has done multiple rounds of "free money;" this has made it even harder to encourage people to get back to work."
- John James, Black Bar Lodge, Merlin