Adventures in burgerland

Investment Analysis Clubs Macro Economic Trends and Risks
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I have mentioned, from time to time, over the last year, a particular Wendy’s near my home, that seems to have chronic staffing issues.

Once fully vaccinated, a year ago this month, I started venturing out, to drive-ups, for a change of pace from the frozen bachelor chow that sustained me through 2020.

Wendy’s started offering a breakfast menu a few years ago, so their first shift now starts early morning, with shift change in mid-afternoon.

This one Wendy’s could not staff a second shift. They would close at 3pm during the week, and not open at all on Sunday. For a while, late last summer, they finally were able to put together a second shift, but it didn’t last, and they were back to the 3pm close.

That Wendy’s has since jumped the shark. Went by a week ago, before 3pm, and noticed the place looked dead. My wanderings today took me into that area, around lunch time, so decided to stop. Pulled in, place looked dead. Got out of my car so I could read the notice taped on the door: “closed temporarily due to staffing issues”. For those who haven’t noticed, while the media is constantly whining about inflation, gas prices, and everything else they can make sound bad, unemployment claims and the unemployment rate are very low. Even if this Wendy’s had two or three people on the payroll, closing the store entirely leaves those people no choice but go somewhere else where they can get some hours, so they’re available manpower is probably now zero, and, instead of finding one or two people to fill out a shift, now they need to find three or four, and a supervisor.

Seems the JC that owns that Wendy’s had succeeded in making his store the worst place to work in the area. Meanwhile, the Arby’s a few doors down the road was well staffed and doing a brisk business.

Steve

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Grocery stores have similar problems. The Shoppers near us recently became a Lidl’s. I asked a Shoppers cashier whether she would be staying with Lidl–and she told me that Lidl did not pay a living wage. Shoppers was always well-stocked, and the lines were reasonable; Lidl’s has empty places on the shelves and long lines. Of course, Lidl’s is a different kind of grocery than Shoppers, so the comparison may not be completely fair, but it is shocking how quickly the same building went from “nice” to “not so nice.”

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Lidl may be having teething problems. They are trying to compete with Aldi, which does a pretty good job of having stuff in stock.

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I’ve seen this a dozen times, and I’ve worked with a few managers who tried to “save themselves rich”. By which I mean they could only focus on cutting costs, never get out front of the customers to make the experience so delightful they’d want to come back. And as the business spirals down, they keep cutting and cutting until there’s nothing left to cut.

We have several Taco Bell’s around here that have closed their dining rooms because of staffing issues. So if you want to go there, your only choice is to eat in your car which is messy, or take it home and eat it cold. Meanwhile, literally across the street, the Chick-Fil-A has cars around the block and there’s often no place to park in their lot. But the Taco Bell has taught people “nah, don’t come here” and workers “nah, don’t work here.” It’s now self-reinforcing: you can’t get enough hours to work so they’re closed, and because they’re closed you can’t make it viable to hire workers.

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We have several Taco Bell’s around here that have closed their dining rooms because of staffing issues.

I haven’t been in a Taco Bell, Mickey D’s, or BK in a long time. Both of the local Arby’s have had their dining rooms open for a while. There is a Wendy’s/Tim’s combo with a common dining room nearby too. Only one time, this year, have I walked in that combo and the Wendy’s side was serving for the dining room. They usually have their metal gate down over the counter, but the Tim’s side is serving the dining room.

But the Taco Bell has taught people “nah, don’t come here” and workers “nah, don’t work here.”

I was voicing a concern along those lines last summer, as I watched car after car pull in to that Wendy’s, after 3PM, only to find the place closed and go off in search of food elsewhere. Today, at 2:25 in the afternoon, I stopped next to the door to the dining room to read the sign on the door. As I stood there, a pickup pulled in and went around to the drive up lane. As I went around to the exit, I saw the guy stopped at the speaker, reading the notice. At some point, people will simply stop going there because “it’s always closed”. The local Detroit media has had a string of JCs crying for the camera about how they need to close their restaurant or bar because “no-one wants to work” for what the JC wants to pay.

and because they’re closed you can’t make it viable to hire workers.

Exactly. The Wendy’s has help wanted signs all over. Say someone responds and agrees to work for them. Their first question: “when do I start?” The answer would be “well, once we hire 3 more people and a qualified supervisor”. The new hire says “I can apply at the Arby’s down the street today and be making money tomorrow.”

Steve

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Lidl may be having teething problems. They are trying to compete with Aldi, which does a pretty good job of having stuff in stock.

Our Aldi is having a heck of a time staying stocked. Don’t know about the Lidl. It’s not one of my regular stops.

IP,
having specific things to buy at Aldi, but primarily shops at Costco and Trader Joes

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…the Chick-Fil-A has cars around the block and there’s often no place to park in their lot.

They have a cult like following here. That and Cane’s Chicken. I honestly don’t get it, but there is now a cop posted at these two fast food places to insure a 2 lane highway doesn’t get blocked from the traffic waiting their turn for the drive through.

IP,
noting you can’t buy stock in either business, having looked when she noted the lines

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We have Lidl and Aldi in Portugal. OK but not spectacular. Also Mercadona (Spain), Intermarché (French?), P-i-n-g-o Doce (local), Continente (???). I rotate between them as they all have some things better than others. Mercadona has the nicest staff. And dozens of mom & pop groceries and butchers and a few ethnic stores.

Burgerland? I avoid fast food like the plague! Domino’s, Burger King, MacDonald’s…

The Captain

P-i-n-g-o (drop, dribble, trickle) ← to get around the STUPID PROFANITY FILTER

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Stopped at Arby’s today to exploit a coupon. Ran into the manager, who has been there for several years, so we chatted for a minute about the Wendy’s.

She said the Wendy’s has been totally closed for about five weeks. She has hired two people away from that Wendy’s, because the Wendy’s franchise owner treats the employees so badly (she used a traditional Angelo-saxon epithet to describe how the store was run). That Wendy’s has been there at least as long as I have lived in the neighborhood, 25 years, but the owner has now run it into the ground.

Steve

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The new hire says “I can apply at the Arby’s down the street today and be making money tomorrow.”

Wait! Didn’t you say earlier in the thread that the Arby’s was already fully staffed???

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Wait! Didn’t you say earlier in the thread that the Arby’s was already fully staffed???

The Arby’s still has the help wanted sign out.

Fast food update today: after dropping my utility bill payment and a couple proxies at the Post Office (envelope glue, YUM!) I stopped at a Tim’s whose dining room has been open at least since March. Dining room closed. Went to a different Tim’s: dining room closed, only saw one employee car in the lot. Went to Arby’s and found the dining room open.

Steve

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For more anecdotes, Albabyboy has a cold (tested negative for Covid) and so was permitted to request a favored meal for dinner. He chose Taco Bell, but when I drove to the one near my house it was closed down due to lack of staff. Second choice was a Happy Meal, and the McDonalds was open - but with a big sign saying that the restaurant lobby was closed due to lack of staff, and only the drive through was available.

Curious…

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Applebee’s Tone-Deaf Franchise Executive Giddily Says He Can Pay Lower Wages Because Of Inflation And Higher Gas Prices

https://www.forbes.com/sites/jackkelly/2022/03/27/applebees-…

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