Restaurants struggle to fill open jobs
Sioux Falls' growing appetite for new restaurants is leaving food service managers starved for workers.
The number of restaurant job openings in the city has quadrupled in the last five years, far exceeding the growth in vacancies for health care and construction fields, which are also struggling to find workers.
“It’s a nightmare,” said Ryan Brickner, who manages the downtown cafe Pappy's the Original. “It’s not like even the quality of the applicants. It’s like there’s not even applications coming in anymore.”
Brickner said he's grateful for the staff that work under him. Most are in their 20s or 30s, and they’re consistent. Getting good workers to stay is a growing challenge for all restaurants, though.
Employee turnover is part of running a restaurant in Sioux Falls, and these days that's particularly true.
“Employers are competing with each other to find those employees,” said Mike Lynch, public affairs and research manager for the Sioux Falls Area Chamber of Commerce.
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Mike McGreevy feels good about his people. He feels like he’s hit a stride with the staff at MacKenzie River Pizza, Grill and Pub, where he works as general manager.
About a third of his employees were there when the restaurant first opened in November, and hiring for kitchen and host positions is still a difficulty, McGreevy said.
“It’s a fun, dynamic work environment that attracts young dynamic people, who occasionally live robust lifestyles after work,” McGreevy said. “Meaning attendance can be an issue.”
For restaurant owners, the increased openings means being vigilant on the look-out for new staff.
Greg Puls opened his fifth Subway location in the Sioux Falls area earlier this year at the intersection of 85th Street and Louise Avenue.
A giant black-and-neon sign still advertises job openings. Puls is always hiring, even though he goes days sometimes without getting applications, he said.
“It’s tight,” Puls said. “It’s very tight.”
The city's restaurant industry is seeing job openings across the board, said Marcia Hultman, head of the South Dakota Department of Labor and Regulation.
And more restaurants means more need for workers. Among the restaurants that opened a new location in the last year are Red Robin, Toppers, Z’Mariks, Giliberto’s, Jacky’s, Crave, Backyard Grill, Einstein Bros. Bagels and ODE to Food and Drinks.
“When I go to Sioux Falls, it seems like there’s always new eating establishments opening constantly,” Hultman said.
Food preparation and service jobs paid an average of $8.54 an hour in 2014, according to the state.
“The stress-to-pay ratio is not even close to what it should be,” Brickner said.
Business owners who are struggling to find staff need to be flexible, Hultman said. Pay isn't the only lever managers have to pull.
“Look at the wages you’re going to pay, your benefit packages, and just your overall work environment,” Hultman said.
McGreevy does what he can to keep workers by making them feel valued. He has less control over the starting pay, $10.50 per hour, than he does over the atmosphere.
“What we try to do to attract or keep good people is become an employer of choice,” McGreevy said. “We try to foster a culture that makes people know that I and we as a company care about them.”
For restaurant workers such as Landon Honomichl, the industry’s workforce shortage makes getting a job easier.
Honomichl, 23, saw the sign outside of Subway and applied. It took eight minutes to fill out the form online. He got a call back the next weekend.
“I can’t beat it,” Honomichl said. “They work around my schedule.”
Follow Patrick Anderson on Twitter @arguspanderson.
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