Starbucks, Chipotle among companies reducing operational hours due to staffing shortages
Staffing and product shortages are taking their toll
Companies across the country are announcing plans to cut hours of operation due to staffing shortages as the country deals with a record surge of coronavirus cases, vaccine mandates, and supply chain issues.
McDonald's says it has cut operational hours by 10% in response to a lack of employees at a number of its U.S. locations. The Golden Arches, similar to many restaurants around the country, have struggled with consistent employee attendance during the COVID-19 surge brought on by the omicron variant. With infections reaching record levels, the entire restaurant industry has suffered a dip in sales at the end of December.
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Coffee giant Starbucks is also having a difficult time finding workers and announced this week that customers may experience reduced hours, a lack of specific products, or a temporary halt on mobile orders and payment options at some locations.
"You have our commitment to make the situation right," the company told customers on Friday. "We will always make proactive decisions that prioritize the health and well-being of our customers and our partners."
Fast food chain El Pollo Loco is experiencing a staffing crunch as well and company leadership says labor shortages negatively affected sales by 5 to 6 percentage points in the 4th quarter.
STAFF SHORTAGES STILL AFFECTING NEARLY 70% OF BUSINESSES WORLDWIDE
"I hope it gets better, but I'm not sure it's going to get a lot better real fast," he said during a recent conference. "Again, next year I think it'll get better and better, but I think longer-term, this is something restaurant companies are going to have to deal with."
The Wall Street Journal reported this week that Chipotle, Shake Shack, and Kura Sushi are also having difficulties staying open as long as they would like due to staffing issues.
"No one is immune to it," Shake Shack Chief Executive Randy Garutti told investors at a recent conference.
Staffing shortages have affected the nation's largest pharmacies as well with Walgreens and CVS both warning that certain locations will have to close temporarily due to lack of staffing.
The transportation industry has been hit by staffing shortages as well as employees continue to call in sick.
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Alaska Airlines was forced to cut flights by 10% due to inadequate staffing and Amtrak announced it is canceling 8% of northeast trips over staffing issues.
This week, the Supreme Court blocked President Biden’s push to force companies with over 100 employees to require them to be vaccinated against the coronavirus.
Fox Business' Emmett Jones contributed to this report.