As Minnesota’s hospitality and tourism industry enters the third year of the pandemic, recovery continues but appears to have slowed, according to results of a survey conducted in mid-May by the Minneapolis Fed and its partners.
About 40 percent of respondents said revenue and customer traffic were better than a year ago, which was early in the recovery. About 60 percent said revenue and demand were equal or better than pre-pandemic levels, but this response has changed little from responses in earlier surveys as far back as summer 2021.
For many, revenue growth was limited by the rising costs of labor and supplies, and the inability to pass all those costs onto customers.
“We are competing with the big corporations who are advertising anywhere from $18 to $24 per hour starting wage. We cannot compete with that.”
One Twin Cities restaurant reported that wholesale prices have increased by more than 10 percent over the past 12 months but it has kept prices for its…
