Maine Restaurants Struggle with Staffing Shortages Due to Housing Crisis
Maine’s restaurant industry faces significant staffing shortages linked to the escalating housing crisis. Owners like Malcolm Bedell, who opened Honey’s Fried Chicken Palace in Thomaston, are being forced to reconsider growth plans due to an inability to find and retain staff. Bedell expressed concerns about the workforce, saying, “Who’s going to run it?”
Impact of Housing Crisis on Maine Restaurants
Across Maine, businesses are grappling with the consequences of a tight labor market exacerbated by rising housing costs. Quincy Hentzel, CEO of the Portland Regional Chamber of Commerce, noted that nearly every sector is struggling. “Every single industry sector is impacted,” he said, highlighting that many companies face challenges in staffing.
Many small business owners report that they cannot afford to pay competitive wages to attract employees while also managing the soaring housing prices. Consequently, some restaurants are shortening hours or even closing entirely. Bedell has had to shut down his original restaurant, Ancho Honey, after a year of operation due to staffing difficulties tied to housing issues.
Challenges in the Food Service Industry
Mike Fraser, a Portland restaurant owner, experienced similar challenges. After years in the industry, he closed Paper Tiger, citing his staff’s demands for higher wages due to increased living costs. “Not being able to operate a business where employees feel compensated is the main reason why,” he explained.
As housing costs continue to rise, many restaurant workers find themselves in precarious situations. Former Paper Tiger bartender Ian King expressed surprise over the closure, stating, “It put us all in a very tight spot,” as local hiring opportunities diminished.
Rising Housing Costs in Maine
The housing situation in Maine has worsened significantly. The U.S. Census Bureau reported that the median rent rose from $870 in 2019 to $1,210 by 2024, impacting workforce availability. In Portland specifically, rent jumped from $1,245 to $1,711 during the same period.
- 2019 Median Rent: $870
- 2024 Projected Median Rent: $1,210
- Portland Rent Increase: From $1,245 to $1,711
Employment Trends Post-Pandemic
The hospitality sector, particularly food services, faced severe job losses during the pandemic. Employment rates in this industry nosedived in 2020, not recovering until mid-2023. Despite the eventual rebound, restaurants contend with a smaller labor pool than before.
James Myall from the Maine Center for Economic Policy remarked that while restaurant wages initially increased post-pandemic, they have not kept pace with housing costs. This disparity complicates the ability of restaurants to attract staff.
Long-term Solutions and Community Involvement
In response to the housing crisis, several organizations launched a campaign called Build Homes, Build Community. The initiative aims to raise awareness about the urgent need for affordable housing to support workforce retention across Maine.
Maine State Chamber of Commerce President Patrick Woodcock emphasized that housing challenges now represent significant economic issues. As businesses struggle, missing talent threatens future growth, he noted.
Proposed Actions to Address Housing Crisis
Addressing these challenges may require local policy adjustments, including:
- Raising the minimum wage to better align with living costs.
- Implementing programs to assist with rent, especially for vulnerable populations.
- Engaging communities to support workforce housing projects.
Woodcock insisted on the necessity of collaborative efforts to overcome resistance to housing developments, advocating for broader community acceptance to alleviate the housing crisis.
In summary, the staffing crisis in Maine’s restaurants can be attributed to the broader housing affordability issues. Without concerted efforts to resolve these challenges, the restaurant industry and other sectors may continue to struggle.
