Minnesota restaurants, hotels struggling with staff and occupancy decline: Report
The Brief
A report compiled by Hospitality Minnesota says that although restaurant locations have grown in the state since 2019, many owners still struggle with finding enough employees.
Although restaurants are growing, the hospitality industry has yet to see pre-COVID 19 pandemic occupancy rates, with 35.9% of business operators saying they are in decline currently.
Of the businesses surveyed, 49.7% reported lower revenue in 2024 compared to 2021, and only 26.7% of those same operators expected revenue to increase.
(FOX 9) - A new report suggests that although business has rebounded since the onset of the COVID-19 pandemic, restaurants, hotels and resorts are struggling with staffing levels and occupancy rates that are still down compared to 2019 or earlier.
What we know
Hospitality Minnesota – an association that represents restaurants, resorts and campgrounds throughout the state – held a press conference Monday to report its findings that highlight the ongoing economic challenges that restaurants, hotels, resorts, and other lodgings around the state face currently.
According to Angie Whitcomb, Hospitality Minnesota's President and CEO, the industries "continue facing unrelated headwinds" as they hope to grow, while also facing potential inflation uncertainties.
The report says restaurants are "grappling with rising labor costs and a shrinking workforce" despite still seeing locations grow 6.3% since 2019.
And despite offering higher pay – overall wages have risen every year since 2021 – the report says that restaurants are still struggling to staff locations.
Dig deeper
While restaurant growth has resumed in Minnesota, the report says the state's hospitality industry has faced a more delayed recovery.
In comparison to 2019 occupancy rates, each of the state's lodging regions is down by at least 5.6% or more, with 35.9% of hospitality business operators saying their business was in some stage of decline currently.
Of the businesses surveyed, 49.7% reported lower revenue in 2024 compared to 2021, and only 26.7% of those same operators expected revenue to increase.
What they're saying
A press conference featuring Whitcomb and Robert Kisabeth, of TPI Hospitality and the chair of the Hospitality Minnesota Board of Directors was held at the Minnesota Capitol on Monday to highlight the findings of the report.
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