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Date	ArticleType
9/7/2022 3:36:37 PM	Press Release
Restaurant Operators Endure Weaker Business Conditions as Economic Pessimism Grows

New survey finds the economy is disrupting service across the industry in Wisconsin Running a restaurant right now is a daily turn at Jenga®, with operators carefully pulling from the foundation of their operating plans to prop up new supports in a changing economy. The costs of goods restaurateurs need most have continued to accelerate, and according to a new survey released today by the Wisconsin Restaurant Association 36% of Wisconsin operators say business conditions are worse now than they were three months ago. Only 20% say business conditions improved during the last 3 months. “Restaurant operators are masters at balancing adaptation and innovation to provide amazing service for their customers,” said Kristine Hillmer, President & CEO of the Wisconsin Restaurant Association. “While operators are more pessimistic about the economy, they aren’t letting that get in the way of serving great food, providing exceptional service and creating a memorable experience.” Restaurant operators expect business conditions to remain challenging Looking forward, most Wisconsin restaurant operators do not expect a return to normal business conditions any time soon. 12% of operators think it will be 7-12 months before business conditions return to normal for their restaurant, while 27% think it will be more than a year. An additional 42% of operators say business conditions will never return to normal for their restaurant. Soaring costs across all parts of the business are creating challenges for restaurant operators A majority of Wisconsin operators say their costs are higher now than they were before the pandemic: 88% of operators say their total food and beverages costs are higher than 2019 85% of operators say their total labor costs are higher than 2019 68% of operators say their total occupancy costs are higher than 2019 73% of operators say their total utility costs are higher than 2019 93% of operators say their other operating costs (supplies, G&A, etc.) are higher than 2019 Wisconsin restaurants took a number of actions in recent months as a result of higher costs: 94% of restaurants increased menu prices, while 73% changed the food and beverage items that it offered on the menu 59% of restaurants reduced hours of operation on days that it is open, while 42% closed on days that it would normally be open 39% of operators say they postponed plans for expansion 36% of operators say they stopped operating at full capacity 33% of restaurants cut staffing levels, while 14% postponed plans for new hiring 23% of operators say they incorporated more technology into their restaurant 11% of operators say they eliminated third-party delivery Profitability is down from pre-pandemic levels Despite the wide variety of mitigating actions taken to address higher costs, the vast majority of Wisconsin restaurants are less profitable now than they were before the pandemic. 75% of Wisconsin operators say their restaurant is less profitable now than it was in 2019 before the pandemic. Only 10% of operators say their restaurant is more profitable, while 15% say their profitability has remained about the same. Click here for national results. Source: National Restaurant Association, national survey of 4,200 restaurant operators conducted between July 14 and August 5, 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 -