They are dealing with labor shortages, not cutting back on service by design, but by circumstance.

It really has not been all that bad around Elk Grove.  I think everyone is doing their best and trying to hire.  It has been more of a challenge to get supplies and parts for repairs that need to be done on my listings.  We have been waiting for a part for a range for over two weeks and it took us months to get a new hot tub cover.

I think that here is a difference in intentionally cutting back on customer service and modifying your services to recognize the difficulties of current market circumstances. Setting expectations in this market environment is very important for all types of businesses.

For instance, we have often observed that it is taking longer to get appraisals down and loans underwritten these days. We need to set the expectations with our clients (sellers and buyers) about how long it may take for an escrow to close.

Staff shortages are typical. We are not yet going to restaurants.

Some are and some are not.

Patience and understanding of what companies are dealing with will serve us all well. 

Many restaurants have no dine-in at this time due to shortage of employees.  

That's what they are saying. I know that in some places, indoor is closed.

Most of the places I frequent actually have done better. There have been a few bad instances but for the most part they are giving it their extra to get back up to running again. 

The lack of good customer service has been on the decline for quite some time now, along with common courtesy, Will. One of my favorite restaurants will no longer allow take-out, offering dine in only. Fast food restaurant employees are flustered because they are short staffed or people choose not to show up for work, putting the burden to be efficient on those who do! New restaurants are unable to open or close down because they are unable to staff them properly.

I don't think they are cutting back because they want to, there is such a labor shortage they have to. It is very sad for restaurants, stores etc. We are having the same problems in Canada too. 

No the restaurant business is alive and well here in the Metro Phoenix area and every place is busy and brimming with people. Phoenix is one of the fastest towns to recover economically and getting people back to work. Are they still needing to hire, of course. But that is always the case.

Customer service or the servicing of the customer is not at lack for failure to apply it but, instead, it is more of a failure to keep promises made. In the world of no excuses, sadly, we have a Bonafide excuse at play today

All businesses need to adjust to the shortage of labor.

Companies have been cutting back on this for a while.  They used the pandemic to put those plans into hyperdrive.

I find Covid to have been a convenient excuse.  Once they have a taste of that power and control, it'll be a long time before they release it. 

Aside from the fact that companies are suffering from labor storage, customer service has been dying for a long time!  It's an attitude among much of the labor force.

Here the problem is not so much help, but the governor and other politicians putting (their two cents in) intervening!

All types of products have gotten out of site in pricing as well.

Some may be but I know many of the stores are going out of their way to have employees ask if they can be of any assistance

Recently went to Nashville for 4 days, the hotel did not provide maid service and their complementary breakfast was very limited. Most of the local restaurants I have been in seem to be at full speed, however they are lacking in help so sometimes service is slow.

You get creative if you want to keep pulling down the biggest slice of the production pie Will Hamm . Like Henry Ford who streamlined the production process, how can we do more with less and adapt. It makes it a game, a survival sport. "The world is on hold, everyone is short staffed and at least some of us showed up" sympathy approach is not enough to deliver the goods, service with a smile. Restaurant take out is huge and helped many stay in business through the pandemic throttling back to idle mode adjustments.

Dining rooms are less full  from what I have seen but that is not necessarily a decrease in customer service, or lack of staff, issue but a requirement due to COVID.  No doubt many businesses are dealing with limited staff for a variety of reasons (e.g., concerns about exposure, staff who are sick) but I don't believe it's an intentional focus on cutting back on "customer service."

labor shortages and people with little to no work ethic

I find it's the opposite.  Businesses are trying to maintain their level of customer service.

I define customer service as how you treat your customers.

It sounds like you define customer service as the number of customers you are serving.  In that case, they are cutting back.

If you use my definition, businesses are limiting the number of customers they serve (for example, half the dining room) in order to maintain the level of customer service their customers are used to.

A friend and I went to Texas Roadhouse the other night, and the restaurant was packed, no cutting back.

They have less staff so the result is a cut in customer service...

I stood in a line 8 deep at 4:00 pm yesterday at a grocery store because only one cashier was working. 

Companies (maybe to be fair, I should say big companies) started cutting back on customer service long before COVID, labor shortages or supply chain issues. 

Are companies choosing to cut back on customer service. All caps YES!
Many larger than restaurant companies, have off-loaded customer service to social media user groups. They have actually removed their contact phone numbers from their websites. Some have employed chatbots.
And with the explosion in affiliate marketing, and social media influencers, this trend will get stronger.
Regarding restaurants:
If the restaurant includes a line item for TIPS on the receipt, that MUST be interpreted as a PREDATORY wage indicator. This practice allows the Restuarant to obscure the REAL COST of that burger. TIPS should be outlawed, and menu prices should reflect real costs that includes wages, delivery, busing, washing and product . Tip Pools is the most egregious of restaurant practices that sustain predatory wages.
Of course, prices will go up, as they should. Fewer will eat out...as they should.
Some restaurants will go out of business, as they should.
And we all continue the covid imposed practice of cooking and eating at home, as we should.
I'm going to make some orange zest skillet corn bread this afternoon, as I should. Good when its colder than it should be outside.

Customer service is suffering. Those willing to work are making an extra effort to cover for the thinking they are enabled and lazy.

I don't know if they're cutting back on customer service but we're definitely seeing restaurants only seating half their restaurant because of labor shortages. Most apologize and explain why. We usually make reservations if available, even for lunch. Some are closing an extra day. I also noticed several closed for a week or two after the first of the year to give their staff a break. 

Customer service never seems to change.  It is always hit and miss.  Some go far out of their way to assist and be helpful and other treat us like they are doing us a favor by letting us frequent their business.

Due to a shortage of staffing restaurants as well as other businesses in the area are having to adjust hours of operations and customer service is automatically affected.

Yes, many are reducing hours in my area. Even places like Great Clips are cutting hours due to staffing shortages.