Press Release
FOR IMMEDIATE RELEASE
May 16, 2022
Media Contacts:
|
Emily Daunt
Michigan Restaurant & Lodging Association (517) 377-3933 |
Michael Odom or Adam O’Connor
Marx Layne & Company (734) 259-9060 Odom’s cell (248) 321-0586 O’Connor’s cell |
Michigan Restaurant & Lodging Association Releases Industry Operations Survey Data Indicating Persistent Labor, Supply Chain, and Housing Issues
Staffing and inflation issues continue in a troubling way, but fewer hotels and restaurants feel at risk of permanent closure.
Staffing and inflation issues continue in a troubling way, but fewer hotels and restaurants feel at risk of permanent closure.
LANSING, MICH. – The Michigan Restaurant & Lodging Association (MRLA) today released the results of a recent hospitality industry operational survey it conducted covering topics of workforce, inflation, commodities, housing and supply chain issues as the industry continues to rebuild following two years of pandemic-related decimation.
“While there is growing evidence that the worst is behind us, the data in this survey paint a clear picture that the hospitality industry continues to operate in a particularly challenging environment. Inflation, supply chain and an inadequate workforce combine to suppress profitability and imperil a much-needed comeback for Michigan’s hotels and restaurants,” said MRLA President & CEO Justin Winslow. “We believe a targeted campaign to educate, train and recruit a world-class hospitality workforce is needed to meet the unmet demands of our tourism-driven state and hope to partner with the governor and legislature to quickly achieve that goal.”
Survey Highlights Include:
“We were surprised by the degree to which the availability of affordable housing is negatively impacting the hospitality workforce statewide,” added Winslow. “It would appear this issue is no longer limited strictly to tourism-centric locations, suggesting the need for a legislative solution to address this issue before it gets worse.”
The survey was conducted May 2 – 9 by the MRLA and included 146 responses from Michigan restaurant and hotel operators, representing over 500 locations and nearly 15,000 employees statewide. MRLA members and non-members were both presented the opportunity to complete the survey.
“While there is growing evidence that the worst is behind us, the data in this survey paint a clear picture that the hospitality industry continues to operate in a particularly challenging environment. Inflation, supply chain and an inadequate workforce combine to suppress profitability and imperil a much-needed comeback for Michigan’s hotels and restaurants,” said MRLA President & CEO Justin Winslow. “We believe a targeted campaign to educate, train and recruit a world-class hospitality workforce is needed to meet the unmet demands of our tourism-driven state and hope to partner with the governor and legislature to quickly achieve that goal.”
Survey Highlights Include:
- 80.5 percent operating with inadequate labor supply to meet demand with one in five establishments more than 30 percent below needs.
- 59 percent operating fewer hours or days due to inadequate staffing, but that is down 18 percent from last August.
- 99 percent have increased wages over the last 12 months, with 40 percent of operators increasing wages by more than 15 percent in that time period. Larger wage increases were up significantly from August.
- 77 percent of operators have experienced commodity inflation in the last 12 months that is greater than 10 percent.
- 87 percent of restaurants have increased menu prices in the last 12 months, most between 5-10 percent and most took 2 increases over that period.
- 74 percent of hotels raised room rates over the last 12 months, 5-10 percent was the range most selected, but greater than 20 percent was a close second.
- 60 percent of all operators said “inadequate affordable housing” for their specific workforce was a challenge, with 89 percent of hotel operators saying so.
- 62 percent report profitability right now, but 61 percent report a decrease in profitability over the last 6 months. Only 21 percent now report that their business is at risk for permanent closure over the next 6 months.
“We were surprised by the degree to which the availability of affordable housing is negatively impacting the hospitality workforce statewide,” added Winslow. “It would appear this issue is no longer limited strictly to tourism-centric locations, suggesting the need for a legislative solution to address this issue before it gets worse.”
The survey was conducted May 2 – 9 by the MRLA and included 146 responses from Michigan restaurant and hotel operators, representing over 500 locations and nearly 15,000 employees statewide. MRLA members and non-members were both presented the opportunity to complete the survey.
About the Michigan Restaurant & Lodging Association
Michigan Restaurant & Lodging Association (MRLA) is the recognized leader of Michigan's hospitality industry, providing essential services to the foodservice and lodging community. Founded in 1921 as the Michigan Restaurant Association and now known as the MRLA, the Association represents over 5,000 Michigan foodservice and lodging establishments. The industry plays an integral role in Michigan's economy, employing more than 595,000 people and creating nearly $40 billion in annual sales. For more information, visit www.mrla.org and www.detroitrla.org.
Michigan Restaurant & Lodging Association (MRLA) is the recognized leader of Michigan's hospitality industry, providing essential services to the foodservice and lodging community. Founded in 1921 as the Michigan Restaurant Association and now known as the MRLA, the Association represents over 5,000 Michigan foodservice and lodging establishments. The industry plays an integral role in Michigan's economy, employing more than 595,000 people and creating nearly $40 billion in annual sales. For more information, visit www.mrla.org and www.detroitrla.org.
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