BRITTANY VALLAS,
MANAGER/DIRECTOR OF THE TACOS.
AND YOURE BOTH IN RESTAURANTS
AND ARE HIRING.
A LOT OF PEOPLE LEFT THE SERVICE
INDUSTRY LAST YEAR AND TOOK
WAREHOUSE JOBS THAT DO MAY $16
AN HOUR.
IS THE ANSWER THE RESTAURANT
INDUSTRY NEEDS TO CHANGE THE WAY
THEY PAY AND MATCH THAT PAY?
>> YEAH, I THINK FOR A LONG TIME
THE ECONOMICS IN THE RESTAURANT
INDUSTRY HAS BEEN PRETTY BROKEN
AND WE ARE SEEING THAT MAYBE
PLAY OUT NOW.
FOR PLACES LIKE LOS ANGELES, NEW
YORK, PEOPLE REALIZE THEY DONT
HAVE TO BE IN L.A. TO HAVE THE
HIGH-PAYING JOBS SO A LOT OF
PEOPLE MOVED OUT.
ITS REALLY UPSIDE DOWN.
WE NORMALLY WOULDNT ADVERTISE
WERE HIRING BUT ITS LIKE
EVERYWHERE BECAUSE ITS REALLY
BEEN DIFFICULT.
WERE WORKING LIKE 18 HOURS A
DAY JUST TO MAKE UP FOR THE
WORK.
SO, YEAH, THE HIRING, YOU HAVETO
ON YOUR LAST GUEST, ITS BEEN
REALLY DIFFICULT TO GET ANYBODY
IN.
I HOPE IT IS RELIEVED BUT IT
MAKES IT DIFFICULT TO GET BACK
TO NORMAL FOR SURE.
>> CAN I ASK YOU EMOTIONALLY,
THIS TIME LAST YEAR, YOU WERE
FIRING ALL OF YOUR STAFF AND NOW
YOU CANT BRING PEOPLE BACK. HOW DO YOU FEEL?
HOW DO YOU FEEL?
>> I FEEL LIKE I HAVE COSD OR
SOMETHING.
I FEEL LIKE IM TRYING TO STAY
IN THE MOMENT BUT THE IRONY IS
NOT LOST ON ME.
LAST YEAR 72 EMPLOYEES.
AND NOW NOBODY WANT TO COME
BACK.
THOSE THAT DO ARE BACK AND WE
STILL NEED TO COVER THE GAP.
ITS CRAZY.
EVERY RESTAURANT, GO ON
INSTAGRAM, LOOK AT ANY OF YOUR
FAVORITE RESTAURANT, IM SURE
THERES A RED POST THAT SAYS
WERE HIRING.
THE COMPETITION IS GNARLY.
ITS QUITE THE JUXTAPOSITION
FROM LAST YEAR FOR SURE.
>> TOM, 12 TIME TO CHANGE THE
WAY PEOPLE ARE PAID IN THE
RESTAURANT INDUSTRY?
CAN WE EXPECT, ESPECIALLY COMING
OUT THE OF THE PANDEMIC,
WAITERS, WAITRESSES TO WANT TO
GO TO WORK FOR $2 AN HOUR AND
ROLL THE DICE HOPING FOR BIG
TIPS?
>> STEPHANIE, NUMBER ONE IN NEW
YORK, WAITERS -- MINIMUM WAGE
FOR WAITERS I THINK IS $10.35,
NOT $2 AN HOUR.
ITS A LITTLE DIFFERENT IN NEW
YORK AND LOS ANGELES.
IN FACT, IN LOS ANGELES, THEY
DONT --
>> TIPS ARE HIGHER HERE.
>> RIGHT.
BUT WHATS INTERESTING AND GOING
ON RIGHT NOW, ITS A LABOR
MARKET.
IF YOU WANT TO HIRE A COOK,
THEYRE COMING IN SAYING, PAY ME
$23, $24, $25 AN HOUR, AND ILL
WORK.
ITS HAPPENING ON ITS OWN.
THERES A SHORTAGE OF LABOR.
WHICH IS INTERESTING BECAUSE
UNEMPLOYMENT IS STILL HIGH SO
YOU THINK THAT WOULD PUT
PRESSURE DOWNWARDS ON WAGES BUT
THE OPPOSITE IS HAPPENING RIGHT
NOW.
AND ITS ABOUT TIME.
ALSO, I THINK WE HAVE TO GET
AWAY FROM THE IDEA RESTAURANT
WORKERS ARE UNSKILLED.
THESE ARE HIGHLY SKILLED
WORKERS, ESPECIALLY YOU GO INTO
A RESTAURANT, YOURE TRAINED,
YOURE SKILLED.
I THINK THEYRE ACTUALLY FINDING
UNDERSTANDING THAT THEYRE A
COMMODITY AND THEYRE GOING TO
DEMAND WHAT THEY NEED AND
BECAUSE THERES SUCH A SHORTAGE,
THEYRE GOING TO GET IT.
>> ALL RIGHT THEN.
THEYRE HIGH SKILLED.
SKILLS COST.
I DO WANT TO ASK YOU, TOM, ABOUT
THIS $28 BILLION.
ITS A HUGE AMOUNT OF MONEY AND
RESTAURANTS NEED IT.
ON SOME LEVEL IS IT ALMOST TOO
LATE?
110,000 RESTAURANTS ARE GONE FOR
GOOD.
AND NOW BOTH OF YOU ARE STILL IN
BUSINESS AND THRIVING LUCKILY
BUT RIGHT NOW THERES HUGE
CONSUMER DEMAND.
WE ARE SEEING PERSONAL SAVINGS
UP.
IS THAT MONEY WELCOMED BUT TOO
LATE?
>> NO, ITS NOT TOO LATE BECAUSE
A LOT OF RESTAURANTS CLOSED.
I CLOSED ONE OF MY RESTAURANTS
PERMANENTLY.
WE STILL OWE BACK RENT.
LANDLORDS HAVE BEEN WORKING WITH
US.
WE STILL OWE BACK RENT.
WE STILL OWE BILLS GOING BACK
SIX, SEVEN MONTHS AGO.
SO US, WE CAN USE IT FOR PAYROLL
AND BONUS PEOPLE TO COME BACK TO
WORK.
LISTEN, THAT $28.6 BILLION WILL
BE GOING VERY QUICKLY.
AS YOU MENTIONED THE TOP OF THE
SEGMENT HERE, 186 PEOPLE ALREADY
APPLIED.
THE GREAT THING ABOUT THIS, ONE
THIRD OF THOSE APPLICANTS ARE
FROM MINORITY-OWNED BUSINESSES,
BUSINESSES THAT ARE DOING UNDER
A MILLION DOLLARS AND
WOMEN-OWNED BUSINESSES.
AND THAT WAS BY DESIGN.
THE WAY WE SET UP THE RESTAURANT
ACT, AND THE INDEPENDENT
RESTAURANT COALITION WORKED WITH
THE FDA AND WE SET IT UP FOR
WHERE THE FIRST 21 DAYS, THOSE
SMALL BUSINESSES, MINORITY-OWNED
BUSINESSES, VETERAN OWNED
BUSINESSES, THEYRE THE FIRST
ONES IN LINE.
FOR THE FIRST 20 DAYS, EVEN
THOUGH YOU CAN APPLY, THEYRE
ONLY PROCESSING THOSE
APPLICATIONS.
WERE TAKING CARE OF THE
SMALLEST OF THE RESTAURANTS
FIRST.
MINORITY, WOMEN-OWN BUSINESSES.
THATS SOMETHING WE FOUGHT FOR
AND GREAT FEATURE.
BUT THAT $28.6 BILLION WILL RUN
OUT VERY QUICKLY.
KEEP IN MIND, STEPHANIE, WE
ASKED FOR $120 BILLION.
WERE DOWN -- THE LOST REVENUE
OVER THE PANDEMIC SO FAR HAS
BEEN PROBABLY ABOUT $200
BILLION.
WE HAVE A LONG WAY TO GO.
>> BRITTANY, IM HOPING YOU WERE
AT THE FRONT OF THAT LINE,
PAYING BILLS AND PAYING HIGHER
WAGES.
BOTH OF THOSE THINGS ARE GREAT
FOR THE ECONOMY.
HOW ARE YOU GOING TO SPEND THIS
MONEY IF YOU GET IT?
I KNOW YOU APPLIED.
>> YEAH, I MEAN, I ECHO
EVERYTHING TOM IS SAYING AND I
THINK THAT THE NUMBER OF
APPLICANTS PARTICULARLY THAT ARE
WOMEN AND MINORITIES SHOW TO THE
AMERICAN PUBLIC THAT RESTAURANT
OWNERS ARE DEDICATED TO COMING
BACK AND TO MAKING SURE THEIR
WORKFORCE IS WELL PAID AND WELL
COMPENSATED.
FOR US, WERE GIVING TONS OF
BONUSES, BUT NOT ONLY BECAUSE
THERES A BILL BUT SO MANY HAVE
WORKED DURING THE PANDEMIC AND
PUT THEIR HEALTH AT RISK EVERY
DAY, SO WANTING TO GISH BONUSES
TO THOSE WHO STAYED.
AND HERE IN L.A. WERE AT 50%
CAPACITY BUT 100% OF THE LIGHT
BILL IS DUE, 100% OF THE RENT IS
DUE, 100% OF THE GAS BILLS ARE
DUE.
ITS REALLY TO MAKE UP FOR THAT.
WERE IN L.A. WHERE ITS
BEAUTIFUL AND SUNNY AND OUTDOOR
AND TOTALLY FINE BUT I THINK
ABOUT PHILADELPHIA, NEW YORK,
TEMPORAL CLIMATES WHERE THEY
HAVE TO LITERALLY BUILD
RESTAURANTS OUTDOORS.
ALSO STEPH, MANY PEOPLE ARE NOT
COMFORTABLE COMING OUT YET.
THE IDEA WERE TOTALLY OPEN AND
EVERYTHING IS BACK TO NORMAL IS
A FALLACY IN A LOT OF WAYS.
I SAID LAST TIME I WAS ON YOUR
SHOW, THIS WAS A DOWN PAYMENT,
AND I REALLY AGREE WITH THAT.
$28 BILLION SEEMS LIKE A LOT BUT
FOR 600,000-PLUS RESTAURANTS
ACROSS THECOUNTRY, ITS NOT.