ARTICLE
New survey finds that challenges including food costs and supply chain shortages are negatively impacting restaurant operations in Wisconsin 2022 was a year of uncontrollable pressures for restaurant operators: rising inflation forced supply costs up, made borrowing capital more difficult, and forced them to raise menu prices. According to the latest survey of Wisconsin restaurant operators, the trifecta of higher food costs, labor costs and energy/utility costs are now a significant challenge for a majority of restaurants in our state. Elevated costs continue to negatively impact Wisconsin restaurants Elevated costs across all parts of the operation are creating significant challenges for restaurants. Restaurant operators in Wisconsin took a number of actions in recent months as a result of higher costs: 90% of restaurants increased menu prices, while 69% changed the food and beverage items that it offered on the menu 50% of restaurants reduced hours of operation on days that it is open, while 34% closed on days that it would normally be open 29% of operators say they postponed plans for expansion 34% of operators say they stopped operating at full capacity 26% of restaurants cut staffing levels, while 12% postponed plans for new hiring 15% of operators say they incorporated more technology into their restaurant 11% of operators say they eliminated third-party delivery Profitability is expected to remain challenged in 2023 Despite the wide variety of mitigating actions taken to address higher costs, a strong majority of Wisconsin restaurant operators do not expect their profitability to improve in 2023. Only 13% of operators think their restaurant will be more profitable in 2023 than it was in 2022. 45% of operators think they will be less profitable in 2023. Wisconsin restaurants will continue expanding payrolls – unless business conditions deteriorate Although the industry added back most of the jobs lost during the pandemic, many restaurants remain understaffed. 65% of operators say their restaurant currently does not have enough employees to support its existing customer demand. 78% of operators say their restaurant currently has job openings that are difficult to fill. Many restaurant operators will be actively looking to boost staffing levels in 2023. 92% of restaurant operators say they will likely hire additional employees during the next 6-12 months if there are qualified applicants available. At the same time, restaurant operators will continue to balance staffing needs with business conditions. 41% of operators say they would be likely to lay off employees during the next 6-12 months if business conditions deteriorate and the economy enters a recession. Supply chain disruptions continue to impact Wisconsin restaurants Like many sectors in the economy, restaurants continue to be impacted by disruptions in the supply chain. 97% of operators say their restaurant experienced supply delays or shortages of key food or beverage items during the past 6 months. It isn’t just food and beverage items that are being impacted. 79% of operators said they experienced supply delays or shortages of equipment or service items in recent months. Click here for national results. Source: results for Wisconsin from National Restaurant Association, national survey of 3,000 restaurant operators conducted in November, 2022 The Wisconsin Restaurant Association is one of the largest trade associations in the state with over 7,000 member locations throughout Wisconsin. The mission of the Wisconsin Restaurant Association is dedicated to the success of the Foodservice and Hospitality Industry. The Association advocates on behalf of the restaurant industry, provides a voice for the restaurant industry to consumers and the media and provides access to information and services to help members better run their businesses. WRA represents the entire foodservice industry which includes over 15,000 licensed food service establishments. WRA membership includes a wide range of foodservice businesses representing virtually every size and style of restaurant in the state. Members include fine dining establishments, mom-and-pop supper clubs, small cafes, quick service restaurants, corporate chain restaurants, institutional food service operations, catering businesses and hotel and motel foodservice among others. - END -
New survey finds that challenges including food costs and supply chain shortages are negatively impacting restaurant operations in Wisconsin
2022 was a year of uncontrollable pressures for restaurant operators: rising inflation forced supply costs up, made borrowing capital more difficult, and forced them to raise menu prices. According to the latest survey of Wisconsin restaurant operators, the trifecta of higher food costs, labor costs and energy/utility costs are now a significant challenge for a majority of restaurants in our state.
Elevated costs continue to negatively impact Wisconsin restaurants
Profitability is expected to remain challenged in 2023
Wisconsin restaurants will continue expanding payrolls – unless business conditions deteriorate
Supply chain disruptions continue to impact Wisconsin restaurants
Click here for national results.
Source: results for Wisconsin from National Restaurant Association, national survey of 3,000 restaurant operators conducted in November, 2022
The Wisconsin Restaurant Association is one of the largest trade associations in the state with over 7,000 member locations throughout Wisconsin. The mission of the Wisconsin Restaurant Association is dedicated to the success of the Foodservice and Hospitality Industry. The Association advocates on behalf of the restaurant industry, provides a voice for the restaurant industry to consumers and the media and provides access to information and services to help members better run their businesses. WRA represents the entire foodservice industry which includes over 15,000 licensed food service establishments.
WRA membership includes a wide range of foodservice businesses representing virtually every size and style of restaurant in the state. Members include fine dining establishments, mom-and-pop supper clubs, small cafes, quick service restaurants, corporate chain restaurants, institutional food service operations, catering businesses and hotel and motel foodservice among others.
- END -