More than a third of Texas restaurant operators say they have lost employees as a result of immigration enforcement activity this year, adding to workforce pressures across an industry where fewer than half of businesses report having the staff they need.
According to a second-quarter survey by the Texas Restaurant Association, 36% of operators said they had lost employees because of immigration enforcement. Another 28% reported fewer job applicants or fewer accepted offers, while 26% said customer traffic had declined because some people were afraid to be out in public.
The survey, conducted between July 16 and July 28 among more than 50 Texas restaurant operators, found that 4% had experienced an I-9 employment eligibility audit this year and another 4% reported an immigration raid. About 34% said they had experienced none of the listed effects.
The findings come as restaurants continue to report broader staffing difficulties. Only 47% of respondents said they currently have the workforce needed to be successful, compared with 38% who said they do not. Another 15% selected other responses, with some describing staffing as inconsistent or saying they were operating with fewer workers than they needed.
"Every time we get fully staffed, we lose a few employees," one operator told the association.
Labor pressures are unfolding alongside higher costs. Compared with the same period last year, 45% of respondents reported significantly higher labor costs and another 36% reported slight increases. Food and other operating costs also rose for most businesses surveyed.
The association said immigration enforcement is creating additional uncertainty for businesses already struggling with labor availability. Its overall outlook index for Texas foodservice operators stood at 54 out of 100 in the second quarter, down from 57 in the previous quarter but slightly above the 53 recorded before that.
