Popeyes Is Closing Some Restaurants Early on Staff Shortages

(Bloomberg) -- Its chicken sandwich may be a hit, but Popeyes Louisiana Kitchen can’t get enough workers to sell it.

Almost 40% of Popeyes locations have been forced to curtail operations as a result of the labor shortage sweeping the industry, forcing the restaurant chain to close dining rooms and rely instead on drive-through, delivery and takeout. It joins a growing list of restaurants, including Chipotle Mexican Grill Inc. and Domino’s Pizza Inc., that can’t get enough people to cook and serve food. 

The late-night business has been particularly affected, Jose Cil, the chief executive officer of Popeyes parent Restaurant Brands International Inc., said Monday on a conference call to discuss quarterly results. Popeyes typically does well in the evening hours when families stop in for a full dinner -- either to-go or dine-in -- but some stores haven’t been able to stay open later in the day.

Restaurant Brands’ shares tumbled 4% at 11:17 a.m. in New York. The stock slipped 1.4% this year through Oct. 22.

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