It has been difficult to find enough staff for Dan Kouri, co-owner of Lariat Steakhouse, Kouri’s Grill & Bar, and a Sonic Restaurant. He said that Lariat is working with 70% of the personnel it needs.
“Really, what everyone is saying is that the labor market in the Peoria market is extremely tight,” said Kouri, president of the Heart of Illinois Hospitality Association.
The lack of staff has forced some local restaurants to shorten their opening hours and days. Sid Ruckriegel, an entrepreneur and a major member of the Peoria City Council, said lockdown hours can work well for businesses looking to maximize service with a limited staff.
However, Kouri does not agree with this approach. Every day a business closes, he said, owners lose money that could be used to pay rent, taxes and other recurring expenses.
“All these things just keep coming, and there’s no remedy for it,” Kouri said. “So, it’s a snowball effect and sooner or later these places won’t survive.”
At Lariat Steakhouse, Kouri explained that one night a customer was shocked by the price of alcoholic beverages at the restaurant. While Kouri said the customer was understanding when explaining the rising operating costs, she said many customers were surprised to learn how severely inflation is affecting restaurants.
Even the price of Heinz ketchup is now double what it once was, Kouri said.
Kouri and Ruckriegel agreed that this increase has disproportionately affected “mother and father” jobs in the Peoria community.
“It’s been a struggle,” Ruckriegel said. “We’ve seen restaurants closing lately, and that’s making it a really tough situation for operators who don’t have the purchasing power of some of the larger groups.”
Most of the larger chain restaurants have a much stronger ability to negotiate the cost of food, Kouri said. Because of the costs, smaller organizations are forced to be “more agile” as they try to balance the cost of procurement and profit, Ruckriegel said.
Non-food expenditures also increased. Prices for repairs and services are rising, and Kouri said businesses are also seeing an increase in the cost of shipping goods, Ruckriegel said.
“So you can see all the costs start to double,” Kouri said. Said. “And then, in the state of Illinois, our governor felt we needed minimum wage increases over the five-year period. Now that adds to our cost on top of inflation. Increase after increase after increase.”
For Kouri, the city of Peoria is also not making it easy for businesses to run. When it comes to operating in Peoria, he said he sees higher tax rates and costs than in Germantown and Beijing, where his other restaurants are located.
Ruckriegel said that open dialogue and talks with the business world are important for the city. Ultimately, he said, it is the city’s goal to enable the restaurant industry to overcome current challenges.
But with the tax rate, Kouri said she felt like “we’re currently working for the city of Peoria.”
“They keep hitting us with more and more wages because less and less people are paying,” Kouri said. “So, it’s a snowball effect. We’re stuck. You know, what are you doing? Our roots are here in Peoria. Peoria is a great community, but to be honest, it’s getting harder and harder to afford Peoria.”
Connect with Cassidy Waigand by emailing her at CWaigand@gannett.com or following her on Twitter at @justxaxwriter.
