The Delaware Restaurant Association on Tuesday released the results of a recent hospitality industry survey conducted to better understand challenges and opportunities approximately three months after COVID-19 restrictions were lifted.

Despite anecdotal stories of recovery, DRA said, the data makes clear that the industry still faces significant challenges tied to its workforce, inflationary pressures and the reemergence of coronavirus variants.

“While Delawareans and tourists alike have proven eager to return to a life that includes travel and restaurant dining this summer, it has become clear that the nature and speed of this return has placed enormous pressure on the industry and its supply chain,” said DRA President and CEO Carrie Leishman.

“Restaurant operators are trying to meet consumer demand that exceeds 2019 with 6,000 fewer workers and skyrocketing labor and commodity prices. Workers are exhausted, and profit margins are thin for many despite the resurgent demand.”

According to DRA, survey highlights include:

• 87% of hospitality industry respondents are operating with inadequate staffing to meet consumer demand.
• Nearly 8 in 10 respondents who reported a staffing shortfall are operating at a employee deficit of more than 20% in their establishments.
• 80% of restaurant operators reported closing or modifying hours of operation as a direct result of inadequate staffing levels.
• 100% of restaurant respondents have increased wages in 2021, with 55% increasing wages by more than 10% this year.
• 100% reported inflation of commodities this year, with 66% reporting price increases greater than 10%. The greatest increases were reported on crabmeat, chicken wings, beef and paper/to-go products.

In addition to the findings of the DRA survey in Delaware, the National Restaurant Association has released a survey of customers to assess dining trends and consumer confidence amid the rise of the delta variant of the coronavirus.

That survey found that 6 in 10 adults changed their restaurant usage as a result of the variant, which is beginning to put acute pressure back on the restaurant industry. Respondents reported canceling existing plans to go out to a restaurant in recent weeks or opting out of indoor dining in favor of restaurant takeout or delivery.

“This is an industry that requires a ‘full house’ to make a profit,” said Ms. Leishman. “These changes indicate declining consumer confidence that will make it more difficult for restaurant owners to maintain their delicate financial stability as we enter a season fraught with the possibility of persistent COVID-19 challenges. Add in an exhausted workforce and rampant inflationary pressures, ... and the struggles this industry has faced for months will only continue, threatening more restaurants to permanently close their doors.

“Replenishing the (Restaurant Revitalization Fund) and prioritizing relief efforts and support of the restaurant workforce must remain a top priority for our local legislators and members of Congress.”

RRF served as a lifeline for many restaurant owners, but an initial round of funding was quickly depleted — leaving roughly two-thirds of applicants nationwide approved but not processed for payment.

More than $67 million in RRF grants were awarded to Delaware restaurant operators, but this represents only 37% of the state’s applicants — the rest remain in limbo waiting to find out if Congress will act to provide the stability they need to make it through this new pandemic threat and into the future.