What we are observing is the Demand Curve shifting left (people less interested in eating out) and the Supply Curve shifting down (the people willing to work in restaurants for any given wage is going down). Remember that supply and demand curves cover all wages/prices and quantities, they are not specific to a certain price/wage or quantity.
This is observed as a shortage - more customers willing to buy a restaurant meal than the restaurants are willing/able to supply at current prices. This must equalize to a new equilibrium with higher prices and fewer restaurants. .
I've over-simplified a lot, but it's pretty much right out of an Econ 101 textbook.
Some of this might be transient - for example the demand curve may shift right again after some time and with COVID well in the past.
The supply curve might shift back up if, for example, government wage supports are reduced.
This is observed as a shortage - more customers willing to buy a restaurant meal than the restaurants are willing/able to supply at current prices. This must equalize to a new equilibrium with higher prices and fewer restaurants. .
I've over-simplified a lot, but it's pretty much right out of an Econ 101 textbook.
Some of this might be transient - for example the demand curve may shift right again after some time and with COVID well in the past.
The supply curve might shift back up if, for example, government wage supports are reduced.