Israeli Restaurateurs Push for Thousands of Sri Lankan Workers Amid Staffing Crisis

The Israeli restaurant industry is grappling with a severe labor shortage that has transformed menus, pricing, and operating hours. The crisis intensified after October 2023 when Palestinian workers stopped entering Israel due to the conflict, and thousands of Israelis were repeatedly called to reserve duty. This exacerbated a long-term trend of young Israelis avoiding kitchen, cleaning, and service jobs, leaving restaurateurs struggling to fill positions.

Ilan Zagdon, co-owner of Saba Jebeto café in Beersheba, has led a nearly three-year campaign to expand foreign worker quotas and reduce employment costs for restaurateurs. He claims to have secured a tentative agreement with Finance Minister Bezalel Smotrich to bring approximately 3,000 additional workers from Sri Lanka and ease hiring expenses, especially for small businesses. However, the plan awaits final approval, and the exact timeline and details remain uncertain.

The industry currently employs around 2,000 Palestinian workers with permits and thousands without, but since their entry halted, only about 2,000 foreign worker permits have been granted, with roughly 1,200 filled. Bernardo Belchovitz, owner of Gan Sipur café chain, calls the current quotas "a joke" and says the sector needs 12,000 to 14,000 foreign workers to meet demand. He warns that labor shortages are now the main barrier to growth and that the restaurant sector, which employs 250,000 people nationwide, is the first to suffer and last to recover from security crises.

The shortage has driven wages up, with skilled cooks earning up to 30,000 shekels monthly and dishwashers making 90 shekels per hour. Restaurateurs like Tal Rashbeski of Oscar's and LAVA in Tel Aviv report paying Israeli workers high wages but still facing rapid turnover. Many restaurants have shifted to self-service models, reducing waitstaff to cope with labor gaps, though some chefs like Ran Shmueli of Claro lament the impact on dining experience.

Zagdon has also worked with the Sri Lankan government to improve worker training and integration. Despite the challenges, he emphasizes the urgency, stating that restaurateurs have become "helpless" and that the best chefs are now washing dishes. The Finance Ministry confirmed ongoing efforts to reform foreign worker policies to improve conditions for businesses.

Summary: Israeli restaurateurs face a critical labor shortage worsened by the 2023 conflict and young Israelis avoiding service jobs. Ilan Zagdon leads efforts to bring 3,000 Sri Lankan workers and reduce hiring costs, but the plan awaits approval. The shortage drives up wages and forces operational changes, threatening sector growth and service quality.