South Florida hotels and restaurants shed more workers as hospitality recovery stalls
South Florida hotel and dining establishments are continuing to shed workers — a sign that the already-feeble economic recovery in a key regional industry may be stalling out.
In a letter dated Oct. 28 and posted to the state’s Worker Adjustment and Retraining Notification site, an Eden Roc Miami Beach official said the iconic resort would begin permanently laying off 126 workers. Among those affected are 16 banquet servers and seven in-room servers.
Eden Roc announced layoffs affecting 458 workers earlier this spring.
“In March when the layoffs were announced, [Eden Roc] had hoped that it would resume normal operations within a short period of time,” the letter stated. “Unfortunately, [Eden Roc] is unable to predict when it will be able to resume normal operations.”
Just south on Collins Ave, Soho Beach House announced in a letter dated Nov. 4 that it would be continuing temporary furloughs that it had initiated in March, with 52 workers now affected.
“Despite the relaxation of some restrictions and the belief that business would increase, the Company has discovered that business levels will unexpectedly continue to remain significantly below normal,” it said.
Some employees had returned to work before being “re-furloughed” in July, Soho said. Ten servers and eight spa massage therapists are among those affected in the latest action.
And at the The Four Seasons Hotel and Private Residences at The Surf Club in Surfside, 31 workers will continue to be furloughed until Dec. 1, according to a Nov. 3 letter.
Hotel occupancy in the Miami area continues to be anemic. According to STR, a leading global hospitality data group, room occupancy in the region hit 42.7% on Oct. 31 — an increase from September’s 36.2% average but still 40% behind the same date one year ago. And at $52.39, revenue per available room lags 55% behind the same date 12 months prior.
Dining establishments also continue to suffer from the ongoing COVID-19 pandemic. At Aventura Mall, the Grand Lux Cafe will be permanently closing Dec. 31, 2020, according to a letter dated Oct. 28, leaving 101 workers without jobs. That includes 33 servers, 19 line cooks and 12 bussers.
Meanwhile, the Dr. Smood juice bar chain said it had begun laying off 40 workers throughout the state starting Nov. 4 — most of them in Greater Miami.
The chain said it had hoped urban professionals would return to offices by August or September.
“Unfortunately, that has not happened and we have no idea of when or if in-person dining will return to anywhere near its pre-COVID levels,” it said in a letter to DEO.
At 113,600 workers, Miami-Dade’s leisure and hospitality workforce remains 21% below its Sept. 2019 level. The sector added a net 3,700 jobs between August and Sept. 2020. October’s state jobs data will be released Nov. 20.
Geoff Luebkemann, senior vice president of the Florida Restaurant and Lodging Association, said uncertainty continues throughout the hospitality industry.
“We’re now entering a phase where the numbers are what they are until something big changes,” he said.
This story was originally published November 11, 2020 at 7:00 AM.
