New York”™s restaurants are struggling to stay profitable in the wake of the current economy, with nearly half of these businesses complaining that their situation grew worse during the last three months.
According to a new survey released by the New York State Restaurant Association (NYSRA), 41% of restaurant operators said business conditions for their restaurant are worse now than they were three months ago, with only 20% reporting improved business conditions. The survey also found 42% of restaurant operators predicting it will be more than a year before business conditions return to pre-pandemic normalcy while 39% felt business conditions will never return to normal.
NYSRA found 85% of restaurant operators were dealing with total food and beverages costs that were higher than in pre-pandemic 2019, with 86% facing higher total labor costs, 70% struggling with higher total occupancy costs and 86% facing higher total utility costs. Nearly all respondents complained their other operating costs, including supplies and general and administrative expenses, are higher than 2019.
In order to keep expenses down, 88% of restaurants increased menu prices, while 73% changed the food and beverage items that it offered on the menu. Also, 77% of restaurants reduced hours of operation and 47% shortened the days they were open. Slightly more than half of the restaurants cut staffing levels and nearly one-third postponed plans for new hiring.
“Despite the wide variety of actions taken to address these issues, the numbers are compelling in terms of the continued negative impact on the industry and our continued struggles,” said Melissa Fleischut, president and CEO of NYSRA. “This survey should serve as a reminder that the restaurant industry isn”™t in the clear. A busy Friday night is great, but don”™t forget that the same restaurant may be closed for lunch or dinner service on days when they used to be open. The recovery is still ongoing for most, and many will never get back the lost revenue from the worst part of the pandemic.”
