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The National Restaurant Association conducted a survey of restaurant operators nationwide from November 16 – December 2, 2021. The information below reflects the results of the survey specifically for Wisconsin. Restaurant Business Conditions Although sales improved from the early months of the pandemic, business conditions remain challenging for many Wisconsin restaurants. Overall, 75% of restaurant operators say their total sales volume in October 2021 was higher than it was in October 2020. Only 11% of operators reported a same-store sales decline between October 2020 and October 2021. However, when compared with October 2019 pre-pandemic levels, many Wisconsin operators say their sales were lower in October 2021. 45% of operators say their sales volume in October 2021 was lower than it was in October 2019. Only 37% reported higher sales compared to October 2019. Business conditions deteriorated in recent months, according to many Wisconsin operators. 46% of operators say their restaurant experienced a decline in customer demand for indoor on-premises dining during the last 3 months. Looking ahead to 2022, many restaurant operators do not expect a return to pre-pandemic sales levels. 30% of operators expect their 2022 sales volume will remain below 2019 levels. 49% of operators expect their 2022 sales volume will be above 2019 levels. Looking further down the road, 17% of operators think it will be 7-12 months before business conditions return to normal for their restaurant; 34% think it will be more than a year. An additional 17% of operators say business conditions will never return to normal for their restaurant. Restaurant Jobs Although the industry added back many of the jobs lost during the pandemic, a majority of restaurants remain understaffed. 78% of Wisconsin operators say their restaurant currently does not have enough employees to support its existing customer demand. Among restaurants that are currently understaffed, 77% of operators say their restaurant is more than 10% below necessary staffing levels. 29% say they are more than 20% below necessary staffing levels. Costs Are Up – Profitability is Down Restaurants are being impacted by disruptions in the supply chain. 100% of operators say their restaurant experienced supply delays or shortages of key food or beverage items during the past 3 months. 93% of operators say their total food costs (as a percent of sales) are higher than they were prior to the COVID-19 outbreak. Only 1% say their food costs make up a smaller proportion of sales. 71% of operators say their total labor costs (as a percent of sales) are higher than they were prior to the COVID-19 outbreak. Only 13% of operators say their labor costs declined as a percent of sales. 69% of operators say their total occupancy costs are higher than they were prior to the COVID-19 outbreak. Only 1% say their total occupancy costs are lower. 71% of operators say their profit margin is lower than it was prior to the COVID-19 outbreak. Only 11% of operators say their profit margin is higher. Most operators do not expect their profitability to improve in 2022. Only 26% of operators think their restaurant will be more profitable in 2022 than it was in 2021. 30% expect to be less profitable in 2022. Source: National Restaurant Association, national survey of 3,000 restaurant operators conducted November 16 – December 2, 2021 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 -
The National Restaurant Association conducted a survey of restaurant operators nationwide from November 16 – December 2, 2021. The information below reflects the results of the survey specifically for Wisconsin.
Restaurant Business Conditions
Restaurant Jobs
Costs Are Up – Profitability is Down
Source: National Restaurant Association, national survey of 3,000 restaurant operators conducted November 16 – December 2, 2021
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.
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