Press Release
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FOR IMMEDIATE RELEASE
April 30, 2018
Media Contacts:
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Michigan Restaurant Association Q1 Trends Report Demonstrates Continued Industry Growth
Workforce Shortage a Significant Threat to the Industry
Workforce Shortage a Significant Threat to the Industry
LANSING, Mich. – The Michigan Restaurant Association (MRA) today released its first quarter research report tracking economic and demographic trends within the restaurant industry on a statewide basis. The survey, conducted by independent firm Cleveland Research and distributed to MRA’s 4,500 members, illustrates continued growth in the industry, but significant challenges finding an adequate workforce to meet the demands of the industry.
Highlights from the Q1-2018 Trends Report include the following:
“The restaurant industry continues to be a growth engine in Michigan’s economy, but the extraordinarily tight labor market is threatening the prospects of future growth, ” said Justin Winslow, President & CEO of the Michigan Restaurant Association. “We are laser-focused at the MRA on workforce development solutions for this industry. Whether it is educating the next generation of hospitality leaders through ProStart or strategic partnerships with state and community leaders that create second chance opportunities for individuals, we are committed to growing a dynamic restaurant industry the does well by doing good,” he added.
Participation in the Q1-2018 Trends Report was significant, with more than 400 MRA member locations and $556 million in annual revenue represented in the survey.
The Michigan Restaurant Association Industry Trends Report represents the first and only independent statewide research report tracking the state’s second-largest private-sector employer.
Highlights from the Q1-2018 Trends Report include the following:
- Same-store sales across Michigan restaurants increased by 1.6% in the first quarter.
- Hiring demand is up with 32% of respondents expecting to increase the total number of employees, up from 22% in Q4 2017.
- The inability to meet the demand for labor in restaurants with enough employees was a significant concern to operators, with an extraordinary 62% reporting it as their single biggest challenge.
- Given the workforce shortage, labor cost pressures continued to rise for restaurant operators, with first quarter labor costs exceeding those in the fourth quarter and in 2017 overall.
- Despite challenges, operator optimism remains fairly strong, with respondents anticipating 4.5% sales growth and 4.0% traffic growth in 2018.
“The restaurant industry continues to be a growth engine in Michigan’s economy, but the extraordinarily tight labor market is threatening the prospects of future growth, ” said Justin Winslow, President & CEO of the Michigan Restaurant Association. “We are laser-focused at the MRA on workforce development solutions for this industry. Whether it is educating the next generation of hospitality leaders through ProStart or strategic partnerships with state and community leaders that create second chance opportunities for individuals, we are committed to growing a dynamic restaurant industry the does well by doing good,” he added.
Participation in the Q1-2018 Trends Report was significant, with more than 400 MRA member locations and $556 million in annual revenue represented in the survey.
The Michigan Restaurant Association Industry Trends Report represents the first and only independent statewide research report tracking the state’s second-largest private-sector employer.
About the Michigan Restaurant Association
Michigan Restaurant Association (MRA) is the recognized leader of Michigan's hospitality industry, providing essential services to the foodservice community. Founded in 1921, the MRA represents nearly 4,500 Michigan foodservice establishments. The industry plays an integral role in Michigan's economy, employing more than 440,600 people and creating more than $16 billion in annual sales.
Michigan Restaurant Association (MRA) is the recognized leader of Michigan's hospitality industry, providing essential services to the foodservice community. Founded in 1921, the MRA represents nearly 4,500 Michigan foodservice establishments. The industry plays an integral role in Michigan's economy, employing more than 440,600 people and creating more than $16 billion in annual sales.
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