A new industry survey shows thinning profits, higher menu prices and possible staff cuts.
New York City’s bars and restaurants face mounting financial pressure. The NYC Hospitality Alliance surveyed 275 establishments. Half said they broke even or lost money in the third quarter. Sales also fell below expectations for about the same share.
However, the second quarter told a different story. The World Cup and Knicks games drew crowds. Executive director Andrew Rigie said that boost proved short-lived.
Furthermore, operators now weigh tough choices. Some sixty-one per cent have raised, or are considering raising, menu prices. Meanwhile, fifty-seven per cent have cut, or may cut, staff hours. Labour costs top the list of concerns for 45 per cent. Inflation, tariffs, insurance and commercial rents follow.
Nevertheless, higher prices carry risk. Customers order less when bills rise. Therefore, Rigie urges policymakers to act on affordability. Whilst some restaurants report higher sales, their profits have fallen. The picture remains complex. Both sides feel the squeeze.
