Press Release
FOR IMMEDIATE RELEASE
May 19, 2026
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Economic Pressure Hit Michigan Restaurant Operators Harder Than National Average
New Survey Shows Entrepreneurial Activity Persists as Operators Navigate Economic Uncertainty
New Survey Shows Entrepreneurial Activity Persists as Operators Navigate Economic Uncertainty
LANSING, Mich. - Michigan's restaurant operators are confronting a challenging economic landscape as inflation-weary consumers pull back on dining and travel spending, according to the latest Restaurant Operator Survey released today by the Michigan Restaurant & Lodging Association (MRLA).
The April survey reveals Michigan operators are experiencing significantly steeper declines than their national counterparts: 51% reported same-store sales decreases in March compared to 39% nationally, while 55% saw customer traffic drop versus 46% across the U.S. The data reflects mounting pressure from persistent inflation, cautious consumer spending, and softening tourism activity.
"What we're seeing is an industry that remains committed to Michigan's economy and communities, but one that's absorbing significant pressure from multiple directions," said Justin Winslow, President & CEO of MRLA. "Operators are still investing, still creating jobs, still opening new locations, but the economic fundamentals are getting tougher.”
Key findings from the April 2026 survey include:
Despite the headwinds, Michigan operators continue to demonstrate long-term confidence in the state's hospitality sector, with investment and hiring plans that outpace national trends even as they navigate demand uncertainty and cost pressures.
"Michigan's restaurant and lodging operators have shown remarkable adaptability, but the current environment requires them to manage more challenges simultaneously," Winslow added. "As we head into the summer season, this industry remains a vital economic engine for the state.”
The Restaurant Operator Survey is conducted by the MRLA in partnership with the National Restaurant Association. The April 2026 survey was fielded from April 23-25, 2026, and asked operators to report on March 2026 business conditions.
The April survey reveals Michigan operators are experiencing significantly steeper declines than their national counterparts: 51% reported same-store sales decreases in March compared to 39% nationally, while 55% saw customer traffic drop versus 46% across the U.S. The data reflects mounting pressure from persistent inflation, cautious consumer spending, and softening tourism activity.
"What we're seeing is an industry that remains committed to Michigan's economy and communities, but one that's absorbing significant pressure from multiple directions," said Justin Winslow, President & CEO of MRLA. "Operators are still investing, still creating jobs, still opening new locations, but the economic fundamentals are getting tougher.”
Key findings from the April 2026 survey include:
- Sales and traffic declines outpace nation – 51% of Michigan operators reported same-store sales declines versus 39% nationally; 55% saw customer traffic drops compared to 46% nationally
- Food costs lead challenges – 23% of Michigan operators cite food costs as their top challenge, followed by labor costs (19%) and the economy (16%)
- Continued investment despite headwinds – 55% made capital expenditures for equipment in the past three months and 34% invested in expansion or remodeling, both exceeding national rates
- Entrepreneurial activity persists – 16% plan to open new establishments in the next six months, more than five times the national rate of 3%
- Pricing adjustments continue – 66% of operators raised menu prices over the past year to manage rising costs
- Cautious optimism – While 36% expect higher sales in six months, 31% anticipate declines—a notably more pessimistic outlook than national operators where only 14% expect sales to fall
Despite the headwinds, Michigan operators continue to demonstrate long-term confidence in the state's hospitality sector, with investment and hiring plans that outpace national trends even as they navigate demand uncertainty and cost pressures.
"Michigan's restaurant and lodging operators have shown remarkable adaptability, but the current environment requires them to manage more challenges simultaneously," Winslow added. "As we head into the summer season, this industry remains a vital economic engine for the state.”
The Restaurant Operator Survey is conducted by the MRLA in partnership with the National Restaurant Association. The April 2026 survey was fielded from April 23-25, 2026, and asked operators to report on March 2026 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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