Sabor y Lucha: The Challenges Facing Hispanic Restaurant Owners Today
It is no secret that Hispanic-owned restaurants add a rich flavor of diverse customs, traditions and culture to the American restaurant scene. However, these restaurants face a unique set of challenges that often go unrecognized. From navigating cultural barriers and accessing capital to weathering economic storms and addressing labor shortages, Hispanic restaurateurs face tough challenges while demonstrating remarkable resilience in their pursuit of success.
Some of the challenges facing Hispanic-owned restaurant owners include:
1. Language and Cultural Barriers:
While Hispanic culture is celebrated in the culinary world, language and cultural differences can still present challenges in business operations. Negotiating contracts, navigating legal requirements, and communicating effectively with suppliers and government agencies can be more difficult for those whose first language is not English.
2. Access to Capital:
Securing funding remains a significant hurdle for many Hispanic entrepreneurs, including restaurant owners. Traditional lending institutions may be hesitant to invest in businesses owned by minorities, leading to a higher rejection rate for loan applications. Limited access to capital can hinder expansion plans, marketing efforts, and the ability to weather economic downturns.
3. Labor Shortages
The restaurant industry has been grappling with labor shortages in recent years, but Hispanic-owned restaurants can be particularly vulnerable. Many rely on a network of family and friends for staffing, which can limit their pool of potential employees. Additionally, concerns about immigration enforcement can create a climate of fear and uncertainty, making it harder to attract and retain workers.
4. Economic Disparity:
Hispanic communities have been disproportionately affected by economic downturns, and restaurants are often the first to feel the impact. Lower disposable income in these communities can translate to fewer customers and lower sales. The COVID-19 pandemic exacerbated these challenges, forcing many Hispanic-owned restaurants to close their doors permanently.
5. Discrimination and Bias:
Despite the growing popularity of Hispanic foods, implicit bias and discrimination can still affect restaurant owners. They may face challenges in securing favorable leases, accessing prime locations, or receiving fair treatment from suppliers and vendors.
Overcoming Challenges:
Despite these obstacles, Hispanic restaurant owners continue to thrive, driven by their passion, resilience, and entrepreneurial spirit. Along with support from local Hispanic communities, business owners like Rocio and Jeff Johnson of SalesHEAD Services are working tirelessly to reach Hispanic owners to help level the playing field.
Rosie Moreno-Johnson -SalesHEAD Services
“We are uniquely positioned to provide Hispanic business owners with education, support and services to help their businesses thrive financially,” says Rocio. Born in Mexico City, Rocio (Rosie) moved to the US as a child but continues to practice her Mexican traditions and customs. “Speaking both English and Spanish fluently, I am able to work with our owners in whatever language they are most comfortable, and I have lived many of the challenges our customers are facing such as working with family, dealing with immigration issues and learning how the US legal and tax system affects business”.
“After sixteen years of Human Resource experience, I agreed to join my husband’s business, SalesHEAD Services. At the time, SalesHEAD was a POS System and Merchant Services provider. Now, we provide financial services including Bookkeeping, Payroll, Tax, Merchant Services and POS Systems to Hispanic-owned business”. “Together, we are a powerful combo and are living our passion by providing owners with the support and services necessary to ensure their continued success and growth!”