Press Release
FOR IMMEDIATE RELEASE
February 16, 2026
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Michigan Operators Navigate Challenges while Investing in Growth
New Michigan Restaurant Operator Survey Reveals Strategic Adaptation Amid Economic Headwinds
New Michigan Restaurant Operator Survey Reveals Strategic Adaptation Amid Economic Headwinds
LANSING, MI — Michigan's restaurant operators are demonstrating resilience and entrepreneurial spirit even as they confront significant economic pressures, according to the latest Restaurant Operator Survey released today by the Michigan Restaurant & Lodging Association (MRLA).
The survey reveals an industry in transition that is facing real challenges while simultaneously making strategic investments in equipment, expansion, and future growth.
"Michigan operators are clear-eyed about the environment they're operating in, but they're pragmatic, not paralyzed," said Justin Winslow, President & CEO of the MRLA. "These results show an industry adapting to new realities while remaining committed to serving their communities and investing in their futures."
Key findings from the survey include:
The survey underscores the dual reality facing Michigan's hospitality industry: operators are navigating cost pressures and softening demand while simultaneously positioning their businesses for long-term success through capital investments and entrepreneurial expansion.
"What we're seeing is an industry that is adapting instead of waiting for perfect conditions," Winslow added. " The data shows us that operators are making difficult, but necessary decisions on workforce adjustments and pricing strategies while keeping their businesses positioned for what comes next.”
The Restaurant Operator Survey is conducted by the MRLA in partnership with the National Restaurant Association. The January 2026 survey was fielded from January 19-24, 2026, and asked operators to report on December 2025 business conditions.
The survey reveals an industry in transition that is facing real challenges while simultaneously making strategic investments in equipment, expansion, and future growth.
"Michigan operators are clear-eyed about the environment they're operating in, but they're pragmatic, not paralyzed," said Justin Winslow, President & CEO of the MRLA. "These results show an industry adapting to new realities while remaining committed to serving their communities and investing in their futures."
Key findings from the survey include:
- Operators investing in their futures – 52% of Michigan operators plan capital expenditures for equipment in the next 6 months, showing continued investment despite economic headwinds.
- Entrepreneurial activity continuing – 11% of operators plan to open new establishments in the next 6 months, significantly higher than the national rate of 2%.
- Labor costs dominate concerns – 27% of Michigan operators cite labor costs as their top challenge, more than double the national average (12%), reflecting recent wage legislation impacts.
- Operators adapting pricing strategies – 67% of Michigan operators raised menu prices over the past year to manage rising costs, slightly outpacing the national trend (61%).
- Sales challenges mirror national trends – 48% reported same-store sales declines and 59% saw customer traffic drops, consistent with the 11th consecutive month of industrywide traffic declines.
- Strategic workforce adjustments ahead – 28% of Michigan operators plan to decrease staffing levels in six months versus only 13% planning increases, a more pronounced reduction trend than nationally (where decreases and increases are even at 19%).
- Cautious optimism for the future – 30% of operators expect higher sales in six months, with nearly half (48%) expecting sales to remain stable.
The survey underscores the dual reality facing Michigan's hospitality industry: operators are navigating cost pressures and softening demand while simultaneously positioning their businesses for long-term success through capital investments and entrepreneurial expansion.
"What we're seeing is an industry that is adapting instead of waiting for perfect conditions," Winslow added. " The data shows us that operators are making difficult, but necessary decisions on workforce adjustments and pricing strategies while keeping their businesses positioned for what comes next.”
The Restaurant Operator Survey is conducted by the MRLA in partnership with the National Restaurant Association. The January 2026 survey was fielded from January 19-24, 2026, and asked operators to report on December 2025 business conditions.
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 5,500 Michigan foodservice and lodging establishments. The industry plays an integral role in Michigan's economy, employing more than 450,000 people and creating nearly $44.6 billion in annual sales. For more information, visit www.mrla.org and www.detroitrla.org.
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