Pandemic, worker shortages have left fewer 24/7 places open round the clock in the Region

Lately, night owls have had fewer places to flock to if they hope to grab a doughnut, a bite to eat or some groceries in the wee hours of the morning, when far fewer people are out, the roads are nearly empty and all is still. 

A casualty of the coronavirus pandemic and the resulting shortage of workers has been 24/7 establishments that were open around the clock.

Record low unemployment in Northwest Indiana has forced many businesses to reduce their operating hours, including fast-food restaurants, craft brewery taprooms and some businesses that never previously closed. Meijer stores now close at midnight. Dunkin and White Castle restaurants that had been open around the clock in Northwest Indiana now have more conventional hours.

The Round the Clock diner in Schererville, whose very name implies that it never closes, lately has been shuttering at midnight on most nights and at 2 a.m. on Thursdays and Fridays.

Munster Donut, another venerable 24/7 institution where factory workers, cops and paramedics have long found refuge in the middle of the night, no longer stays open around the clock. 

The long-running doughnut shop at 8314 Calumet Ave. in Munster now opens at around 4:30 a.m. and closes at around 8 to 9:30 p.m.

"It's hard," co-owner Elaine Butynski said. "First of all, we don't have enough help. Secondly, we're too small to be spaced out so are just doing the carryout."

Originally a Mister Donut, the business had been open 24/7 for more than a half-century.

"It's very hard right now," Butynski said. "It's very hard. We're a small business. Other employers are able to offer higher wages and benefits, which is what does us in. It's just tough. We can't find enough employees."

The issue has been affecting many restaurants, retailers and other small businesses, Munster Donut co-owner Jo Ellen Aleksandrovich said. 

"Plenty of employers are struggling. It's affecting everyone," she said. "You see help wanted signs from here to Schererville. We have enough people for the day but don't have enough people to cover midnight shifts."

While it was always slower overnight, Munster Donut still had its regulars at all hours. Some toiled through the third shift or kept irregular working hours, clocking in whenever they were scheduled to. Others had a more "you can sleep when you're dead" attitude.

"We had ambulance workers or people coming in late at night after a concert or early in the morning heading off to the mill," Butynski said. "People would come in early to stop for treats for the office, especially on Fridays."

Customers have adjusted to the more limited hours, but Munster Donut would prefer that customers buy fresh donuts instead of eating day-old ones to ensure quality control.

"We've been getting rid of donuts by donating them to the hospital and places like that," she said. "It's a quality issue. We don't want people buying them in the evening and not eating them to the next day in the afternoon."

They have cut back on producing some niche doughnuts that don't sell as well after 4 p.m., such as French, sour cream and doughnuts that might not sell out by close. Munster Donut now only bakes top sellers like honey-dipped in the evening, when the selection has been pared down.

Munster Donut also has been struggling with supply shortages and doing the best it can to get through the COVID-19 pandemic. It installed safety glass at the counter to keep employees safe and switched to a carryout model.

"A couple of customers still come in and try to sit down," Butynski said. "But it's too small, and there's no safety. We're going to keep our employees safe until we know it's safe."

Munster Donut hopes to expand its hours as soon as it has the staffing to do so again.

"We would like to readjust our hours to at least midnight," she said. "We used to get a big crown around 11 p.m. after the football games. It was a tough decision to cut back on the hours but our hand was forced."

They look forward to whenever they can resume normal operations.

"We do miss our customers and people sitting at the counter," Butynski said. "We would love to be open later, at least on weekends. It's hard but it feels better because we're not singled out. Everyone else is going through the same thing."

Unemployment fell to 2.1% in the Gary metropolitan area in December, putting a squeeze on companies that need more workers. Help wanted signs are nearly everywhere in Northwest Indiana.

"The low unemployment rate is almost entirely due to a continued decrease in the labor force. At the end of 2021, there were almost 20,000 fewer people in the labor market in Northwest Indiana compared with the end of 2019," Indiana University Associate Professor of Economics Micah Pollak said. "During the pandemic, roughly 6% of all workers in Northwest Indiana left the labor force and have not returned as part of the ongoing 'Great Reassessment' of labor. Nor is it likely we will see these workers returning any time soon, as the trend suggests the labor force will continue to shrink. As a result of this decline in the labor force, we have a very tight labor market where, for the first time in more than half a century, power in the labor market has shifted to workers."

As the labor force has shrunk, fewer than 8,000 people are currently deemed to be unemployed or out of work and currently seeking a full-time position, according to the Indiana Department of Workforce Development. 

"There are several factors driving this decline in the labor force. The top reasons workers cite for not returning to work are the need to provide child or family care and for lack of work flexibility. Other workers are choosing to retire (or retire early) due to the increased risk and stress associated with many jobs due to the pandemic, particularly those in food service and retail," Pollak said. "Still others are no longer willing to work multiple jobs, something that Americans were doing in record number prior to the pandemic. Lastly, now that more workers have the flexibility to choose when and where they work many have chosen to leave Indiana. While Indiana likes to tout its 'business-friendly' policies, the state is profoundly not 'worker-friendly' and many workers have left for states and regions which offer better wages, legal protections and worker rights, work environments and quality of life."

Reductions in operating hours short-staffed businesses have made may not end up being permanent but they may linger for a while, Pollak said.

"Many businesses have reduced operating hours recently due to sick staff and, as the omicron wave recedes and the spread of the virus slows, this will likely ease up some soon," he said. "However, I think it is likely we will continue to see businesses reduce their operating hours from pre-pandemic levels as a result of the labor market becoming much more competitive."