Beach towns brace for Memorial Day crowds

Newly lifted outdoor mask mandates paired with a population raring to return to normal are a perfect combination for crowds this Memorial Day weekend, even if the weather forecast is questionable. Rain or shine, businesses are still scrambling to find workers for this weekend, and the summer months to come.

“It's going to be packed, but customers are going to be happy,” said Chip Hearn, owner of The Ice Cream Store on Rehoboth Avenue next to the Boardwalk.

For the past two weeks, Hearn said, he has watched crowds swell along the downtown walkways. Sunny weather last weekend brought out the biggest crowds of the season, forcing him to scramble to provide his homemade ice cream products in high demand.

“We had a great weekend, and week,” he said. “It's a good sign for May.”

At Jack Lingo Realtor, rental manager Sheila Davolos said only 15 percent of rentals were still available leading into Memorial Day weekend. “Even with the not-so-great forecast, it is going to be a very busy weekend,” she said.

So far, the only setback is a dearth of employees. Hearn said his business is no different from others up and down Rehoboth Avenue – many with help wanted signs plastering their storefronts.

“I've never had this problem in all the years I've worked,” said the business owner and operator of more than five decades.

Even offering a $13 starting salary for untrained employees has done nothing to bring in new workers, he said. The Ice Cream Store largely depends on foreign students on J1 visas to staff his stores, but 12 of the 21 students he expected to work this summer have already canceled. Of the remaining students, he said, only three have begun the visa process with the U.S. Embassy.

“I'd love to hire more Americans,” Hearn said. “I have job openings in all my companies. The problem is, there are hundreds if not thousands of job openings in the eastern Sussex area.”

Up and down Route 1, fast food and motel marquees have help wanted postings offering jobs from $13 to $20 an hour. Royal Farms and Wawa have signs offering a $500 signing bonus, and Weis Markets is offering $1,000 signing bonuses.

In one of the most original – and entertaining – newspaper help wanted ads, Harry Caswell Inc. sought plumbers, helpers and drivers who could work 40 hours a week without staying home with the kids every other day; show up to work on time, not arriving late or oversleeping; have a car that runs on gas; are able to read a tape measure; not have court dates on a regular basis; and not come to work stoned.

Caswell said he had four people apply after the ad ran. None of them worked out.

“As soon as you say a drug test, they're gone,” he said. “We had two guys that came in and they both wanted a job, and I said can you pass a drug test, and they said yeah. I turned around went in the office, opened the file cabinet to get two forms for Labcorp, and I came back out and they were gone. They were pulling out of the driveway.”

Caswell said he has 80 guys and could use another 20 for jobs he has across the county and as far as Kent Narrows, Md. He starts new employees at $15 an hour, and has workers who are making up to $35 an hour. “I just gave everybody a $2 an hour raise. That cost us probably about $250,000 for the year. But I had to because they were all leaving,” he said.

Other companies were paying higher, he said, and skilled workers are in high demand.

Then there are the unskilled workers who are content with staying home and collecting the $300 unemployment, he said.

“I'm sure that's affecting it. That's why we're not getting any applications,” he said. “They're waiting until that dries up before they go out. I'm sure as soon as they stop that, we're going to start getting some applications and some help.”

Gov. John Carney said he has no plans to cancel the $300 federal supplement, even though dozens of other states have already done so in an effort get people back to work. On June 12, the Delaware Department of Labor will require anyone receiving unemployment to upload a resume and complete at least one unique job search a week to remain eligible for unemployment benefits.

In Dewey Beach, restaurant owners say they need employees now.

Jimmy O’Conor, owner of popular Woody’s Dewey Beach Bar and Grill, said he anticipates an outrageously busy summer with plenty of customers, but he doesn't have enough staff to serve them.

For the second year in a row, O’Conor said, he won’t be able to open a planned takeout location, Woody’s 2 Go, because he can’t find kitchen workers. O’Conor hoped to open the takeout across Coastal Highway from his main restaurant to alleviate pressure on employees and wait times for customers.

“It kills me to have it sit there another summer,” O’Conor said. “It’s the most expensive storage room in Dewey Beach.”

O’Conor said he firmly believes the extra $300 in unemployment benefits is impacting all businesses, not just restaurants. He said he has spoken to potential hires who told him they could make almost as much money sitting at home and not working. In fact, he said, an employee at the state unemployment office even told him the same thing when he asked the office to refer potential employees to Woody’s.

On top of that, O’Conor said, he has to compete with businesses that pay under the table, enabling their employees to still receive the extra $300 given by the federal government to states.

Without enough kitchen staff, O’Conor said, he might have to make a hard decision to stop accepting takeout orders at peak times, except for uncooked crab cakes.

“We want to serve all of our customers, but we can’t do it with the staff I have now,” O’Conor said.

Despite palpable excitement over new rules that allow full occupancy and no masks for those vaccinated, Steve “Monty” Montgomery, owner of Dewey landmark The Starboard, said the lead-up to Memorial Day weekend is stressful for many businesses struggling to find workers.

“Without much in the way of J1 students from abroad, it’s more obvious than ever that the additional federal money being paid in unemployment is keeping a lot of people from getting back to work,” Montgomery said.

After 15 months of government restrictions, he said, people are ready to make up for lost time. This summer has the potential for the biggest sales ever, Montgomery said, but the employee shortage for many industries, particularly restaurants, will sting.

“Restaurants lost many employees to other industries during such a long shutdown, and seasonal restaurants will really struggle as many folks found year-round jobs in other industries,” Montgomery said. "Hopefully with some stability in the hospitality industry ahead, we'll be fortunate to get folks back working in this industry. Pay rates have never been higher, and now is the time for folks to get back working.”