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Testimony - Michigan Restaurant & Lodging Association, Update on the State of Michigan's Hospitality Industry

Summary

Testimony materials of the Michigan Restaurant & Lodging Association titled An Update on the State of Michigan's Hospitality Industry, One Year Later. Under Labor Issues, the materials state that 80% of operators reported closing early or for specific segments of the day because of inadequate staffing, and that 81% of hotels are limiting room inventory. They state that 95% of operators have increased wages in 2021, with half increasing wages by more than 10% this year. They also state that in August restaurants across the United States lost 41,000 jobs while the economy saw a net gain of 235,000. Further sections are headed Product Cost Increases and Consumer Behavior, which refers to the Delta variant.

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“Testimony - Michigan Restaurant & Lodging Association, Update on the State of Michigan's Hospitality Industry.” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-09-15-testimony-comm-2021-john-mcnamara-45813-4c16fec5de/, SHA-256 a4aa08f65f4d02da607945d9509e52059a5a1ef94b0a1f1182218540db0a6f8b.

Full text

MICHIGAN RESTAURANT & LODGING ASSOCIATION

       An Update on the State of
      Michigan’s Hospitality Industry
MICHIGAN RESTAURANT & LODGING ASSOCIATION


         One Year Later
MICHIGAN RESTAURANT & LODGING ASSOCIATION


           Labor Issues
               ✓ 80% of operators reported closing early or for specific segments of
                 during the day as a direct result of inadequate staffing levels


               ✓ 81% of hotels are limiting room inventory because they do not
                 have adequate staffing to turn them over for new guests


              ✓ 95% of operators have increased wages in 2021 with half
                increasing wages by more than 10% this year


               ✓ In August, across the United States, restaurants lost 41,000
                 jobs. Overall, the economy saw at net gain of 235,000 in
                 August alone.
MICHIGAN RESTAURANT & LODGING ASSOCIATION


    Product Cost Increases
              MICHIGAN RESTAURANT & LODGING ASSOCIATION


                           Consumer Behavior

❖ Due to the rise in confirmed Delta variant cases 6   ❖ 55% are likely to postpone existing travel
  in 10 adults their plans to utilize a restaurant       plans until a later date

❖ Due to the Delta variant 9% canceled plan to dine ❖ 72% are likely to only travel to places they
  in a restaurant. 19% stopped dinning in             can drive to
  restaurants altogether                               ❖ 72% are likely to only travel to places
❖ 69% are likely to take fewer trips and 65% are         they can drive to
  likely to take shorter trips

                       ❖70% are likely to travel with smaller groups

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