Other twists for the industry, like the labor shortage, persist. In September, there were roughly 1.6 million open jobs in leisure and hospitality, which is 10 percent of all jobs in the industry. Some CMR units still have to restrict reservations or operate on different hours due to staffing challenges, Miller says.
Staffing remains at about 90 percent of full levels at CMR. Part of the reason the company continues to retain employees is through its culture, which Miller says is the lifeline of the organization. When CMR originally brought back managers, the company could only offer 80 percent pay. Eventually, pay improved to what it was and more. Managers got a raise of up to 110 percent their pre-COVID figures.
“It's a family environment,” Miller says. “And we work very hard at that and keeping that environment. And what do you do with your family? You protect your family. You care for your family. And that's what we've always done and we'll always do.”
There are many reasons to be grateful at CMR, he adds. Management turnover is low, and customer demand is at an all-time high.
In earlier pandemic days, carryout comprised 15–20 percent of business at restaurants. It’s now slowed down and kept consistent as diners return inside.
“Guests certainly have a new appreciation for carryout businesses and carryout food, and restaurants had to rethink how we did carry out to make it as efficient as possible,” Miller says. “So our guests have as close to the same experience eating at home as they do in our restaurants.
Catering hasn’t recovered as strongly and likely will not until more businesses return to their offices, Miller says. Overall, however, customers have been excited to be back in restaurants.
When guests were cut off from the restaurant industry completely during shutdowns and COVID restrictions, they realized how important the industry was to the fabric of their social lives, Miller says.
“There are some silver linings,” Miller says. “And I do feel that the average consumer really has a deeper appreciation for the restaurant and hospitality industry than maybe they did before.”
So CMR remains bullish on its future, planning to open five restaurants in the next year and a similar amount in the next three to five years.
“It is the lifeblood of our organization,” Miller says. “We have associates that came to work for us to build their careers and build their families and their personal lives, and we want to create those opportunities today just like we have over the past 28 years.”
As long as CMR can continue to operate restaurants at a high level, it will continue to expand, Miller says. The only periods the company briefly stopped was during 2020 and the Great Recession in 2008–09.
For CMR’s national brand, Ocean Prime, the company plots a footprint in major markets, from New York City to Boston and Beverly Hills to Tampa. CMR’s specialty brands, however, are systematically and slowly expanding into markets they’ve already found success.
Barring any other unexpected circumstances, Miller predicts sales to keep climbing next year. However, with inflationary headwinds and labor costs driving up, guests will likely see a higher price tag on their menus.
Some recent movement:
- Budd Dairy Food Hall, opened April 2021
- Prime Social Kansas City, which opened November 16, 2021
- Del Mar Naples opens December 2021
- Ocean Prime Kansas City opens in early 2022
- Valentina’s, Columbus, Ohio, opens in 2022
- The Pearl, Tampa, Florida opens in 2022
- Four additional Ocean Prime locations (TBA) in 2022–2023
Miller anticipates a price raise of 5 percent to meet these headwinds as he believes the labor shortage will likely not improve until late next year. Typically, CMR increases prices by 2–3 percent a year.
“In our restaurants and all restaurants, you have no choice,” Miller says. “Labor costs are going up through the roof at a rate they've never gone up before. Your cost of goods are going up at a rate that they haven't gone up before. So the only way restaurants and people can combat that is you have to pass some of that on.”
