Peoria restaurant owner faces staffing shortages and rising costs

On Sep 6, 2022

Kouri's Pub has a spacious open air beer garden that allows customers to enjoy the outdoor weather while relaxing in the shade.

Finding adequate staffing has been a struggle for Dan Kouri, co-owner of the Lariat Steakhouse, Kouri’s Grill & Bar and a Sonic Restaurant. He said the Lariat is operating with 70% of the staff it needs.

“It really is what everybody’s been saying, that the labor market is extremely tight in the Peoria market,” said Kouri, who is also president of the Heart of Illinois Hospitality Association.

A lack of staff has forced some local restaurants to cut back on hours and days of operation. Sid Ruckriegel, an entrepreneur and at-large member of Peoria City Council, said curbing hours can work well for businesses looking to maximize service with a limited staff.

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DAVID ZALAZNIK/JOURNAL STAR Lariat Steakhouse co-owner Dan Kouri.

But Kouri disagrees with this approach. Every day a business is closed, he said, owners are losing money that could be used to pay rent, taxes and other recurring costs.

“All that stuff keeps on coming and there’s no reprieve from that,” Kouri said. “So, it’s a snowball effect and sooner or later, these places aren’t going to survive.”

At the Lariat Steakhouse, Kouri recounted one night when a customer was left shocked by the price of alcoholic beverages at the restaurant. Although he said the customer was understanding when he explained the rising costs of operation, Kouri said many customers are surprised to learn just how drastically inflation is affecting restaurants.

Even the price of Heinz ketchup, Kouri said, is now twice what it once was.

This increase, Kouri and Ruckriegel agreed, disproportionately impacts the “mom and pop” businesses in the Peoria community.

“It’s been a struggle,” Ruckriegel said. “We’ve seen restaurants close recently, and for the operators that may not have the buying power of some of the larger groups, it becomes a really difficult situation.”

Many of the larger chain restaurants, Kouri said, have a much stronger ability to negotiate the cost of food. Because of costs, Ruckriegel said, smaller establishments are forced to be “more nimble” when attempting to balance the cost of supplies and profit.

Non-food expenses have also increased. Ruckriegel said repair and utility prices have gone up, and Kouri said businesses are also seeing an increase in the cost of transportation for goods.