DECLINING SALES AND INDUSTRY CONCERNS AMID SUMMER 2024 CHALLENGES
NYC HOSPITALITY ALLIANCE SURVEY REVEALS DECLINING SALES AND INDUSTRY CONCERNS AMID SUMMER 2024 CHALLENGES
72% Of Restaurants Reported Declining Sales in Summer 2024, With High Labor Costs, Fewer Customers, Overall Regulatory Environment As Major Challenges
The NYC Hospitality Alliance released the results of a new survey that found declining sales over the Summer of 2024 as restaurants and bars cited as their main concerns high labor costs, too few customers, and the overall regulatory environment.
According to the survey, of the operators of 354 establishments responded, 72% of establishments reported lower sales from June 1 to August 31, 2024, compared to the same period in 2023. Meanwhile, only 5% of businesses saw a rise in sales, and 22% reported that their sales remained steady year over year.
For those businesses reporting declines, 43% experienced a sales drop of 1-10%, 29% saw decreases between 11-20%, and 24% experienced declines in the range of 21-30%. A smaller portion of establishments—4%—reported a more significant drop, with sales plummeting by over 31%.
Looking ahead to fall sales (September 1 to November 30, 2024), 41% of respondents expressed a positive outlook for the coming months, 33% reported feeling pessimistic, and 26% remain uncertain about what lies ahead.
“Declining sales, too few customers, and high operating expenses are a warning sign that many of our city’s restaurants and bars are struggling,” said Andrew Rigie, Executive Director of the Alliance. “Our government leaders should heed this warning and focus on policies that support local businesses and not those that drive up costs and bureaucracy.”
Business owners also voiced concern about the rising costs and operational issues they face. Leading the list of concerns were labor costs, with 53% of respondents citing this as their primary challenge, followed closely by a lack of customers at 45%. The overall regulatory environment (39%), commercial rent (36%), inflation (32%), and insurance rates (31%), rounded out the list of top challenges.
The NYC Hospitality Alliance also recently released the results of another survey on the city’s disappointing number of restaurant applications under the new Dining Out NYC outdoor dining program that found that while much better than the pre-pandemic system, its costs, complexity and stricter placement limitations on seating kept many restaurants from applying, so modifications are one way the city can support restaurants and jobs.