Inflation, staff shortages pinching some McHenry County restaurants: ‘We held on as long as we could’

As food prices kept rising and available staff became harder to find, the final six months before Bulldogs Grill in downtown Wauconda closed shop this summer could be described as “brutal,” the restaurant’s owner said.

”We held on as long as we could,” owner Aaron Aggarwal said. “We had a great run.”

While events such as Brews and Blues in McHenry or National Night Out in downtown Crystal Lake have drawn big crowds to support local businesses this summer, some residents said the rising cost of menu items at restaurants and cafes – or inflation in general, including for gas and groceries – has caused them to cut back on spending.

“It’s definitely gone down,” Crystal Lake resident Cary Gilliam said regarding the frequency of how often she dines out. “Prices are going up. Smaller businesses have no choice. There’s not much they can do. I feel bad. It’s going to end up putting a lot of them out of business.”

A survey earlier this year from the U.S. Chamber of Commerce found that 67% of small businesses had raised prices by an average of 6%. In addition, the chamber found 41% had reduced staff and 39% took out a loan in response to inflation.

“Wing prices are insanely high,” said Billy Kedge of Lake Zurich, who owns the Rolling Smoke BBQ food truck. “I have to tell catering customers wings are still on my menu, but you’re gonna pay.”

Kedge said his business has done well this summer – Rolling Smoke does private parties, farmers markets and community events – but some other establishments haven’t been so fortunate.

At least three small businesses in the area have closed in recent months, in addition to Bulldogs: the Hidden Pearl and Margaritas Restaurant in McHenry and Nana’s Deli in Crystal Lake. The latter was only open since fall 2020.

Among the issues that caused Bulldogs to fold were lingering effects from the pandemic such as higher rent prices and staff shortages, Aggarwal said, adding that the restaurant struggled to find qualified cooks in particular.

“We could not find cooks to save our lives,” Aggarwal said. “People don’t want to work in restaurants right now. It’s that way everywhere.

In addition, the price of wings, a staple for many bars and restaurants, went up more than 60% over the past year, Aggarwal said.

“It was tough to pass that onto the customer,” Aggarwal said. “The industry has to change.”

Attempts to reach the other business owners were unsuccessful, but posts on the Hidden Pearl and Nana’s Facebook pages attributed their closures to property costs and food prices, respectively.

“With the combined issues of today in the food industry, mostly high food costs, we have chosen NOT to lower the quality of our meat,” the Nana’s post states. “With our costs still peaking, we are forced to close our doors. Many restaurants are able to change out their high cost meats for lesser ones; Nana’s cannot do this.”

In addition, Island Foods grocery store in Island Lake announced that after 50 years it would be closing at the end of the summer. The store did not specify the reason for its pending closure.

Maria Weisbruch, executive director of the Wauconda Area Chamber of Commerce, said her office has heard a lot about staffing struggles in addition to supply chain headaches.

“Every situation is different,” Weisbruch said. “Decisions are made for various reasons. Small businesses are run by moms, dads, friends and neighbors with families, and real-life issues surrounding them. They go from unlocking the front door to mopping the bathroom to stocking the shelves to doing the bookkeeping. That’s why it’s so important to support local businesses, now more than ever before.”

Some ways both independent businesses and larger chains have adjusted is by offering fewer selections, Crystal Lake Chamber of Commerce President and CEO Bill Eich said.

“We’ve noticed a slowdown in customers,” Eich said. “It’s gotten to the point where consumers are borrowing on a national level. It’s a fluid situation and people are adjusting.”

Not everyone is cutting back on going out. Cary resident Colton Dickson said the high price of gas means he and his girlfriend are eating out locally more than ever before.

“Travel is difficult,” Dickson said, “so why not do stuff close to here?”

McHenry resident Stephen Byrnes, who runs a personal chef and catering business, said his own habits haven’t changed but he wouldn’t want to own a restaurant right now.

“People say, ‘It’s horrible places are shutting down,’ but they’ll still go to Starbucks,” Byrnes said.

While inflation hasn’t caused a dramatic change to the restaurant landscape in Crystal Lake or McHenry County yet, the problems likely will to grow if the situation persists, Eich said. Many businesses have borrowed over the past few months to keep things going.

“That’s the initial response, but if this goes on long enough, then there will be more changes to business models,” Eich said. “We’re not at that point right now.”

Aggarwal called the push to attract new hires “the million-dollar question” and said the lack of staff, more than anything, could lead to more closures.

Otherwise, as during the pandemic, restaurants could feature smaller menus, less waitstaff and more places leaning on carryout or switching to drive-thru, Aggarwal said.

“You can’t fill those positions yourself [as an owner],” Aggarwal said. “Washing dishes one day, sautéing the next. It doesn’t end. You can only raise wages so much. Every other problem will escalate from there.”