NMRA News:

Elevated costs, supply chain disruptions, and lack of employees are the three major problems plaguing the New Mexico restaurant industry and hindering recovery from the pandemic, as indicated by the results of a statewide industry survey conducted by the National Restaurant Association at the end of 2022.

Restaurant operators in New Mexico took a number of actions in recent months as a result of higher costs:

• 80% of restaurants increased menu prices, while 51% changed the food and beverage items that it offered on the menu;
• 49% of restaurants reduced hours of operation on days that it is open, while 34% closed on days that it would normally be open;
• 23% of operators say they postponed plans for expansion;
• 23% of operators say they stopped operating at full capacity;
• 23% of restaurants cut staffing levels, while 9% postponed plans for new hiring;
• 6% of operators say they incorporated more technology into their restaurant; and
• 14% of operators say they eliminated third-party delivery.

Despite the wide variety of mitigating actions taken to address higher costs, a strong majority of New Mexico restaurant operators do not expect their profitability to improve in 2023. Only 20% of operators think their restaurant will be more profitable in 2023 than in 2022. 40% of operators think they will be less profitable in 2023.

Like many sectors in the economy, restaurants continue to be impacted by disruptions in the supply chain. 94% of operators say their restaurant experienced supply delays or shortages of key food or beverage items during the past 6 months. It isn’t just food and beverage items that are being impacted. 74% of operators said they experienced supply delays or shortages of equipment or service items in recent months.

Although the industry added back most of the jobs lost during the pandemic, many restaurants remain understaffed. 64% of operators say their restaurant currently does not have enough employees to support its existing customer demand. 88% of operators say their restaurant currently has job openings that are difficult to fill.

Many restaurant operators will be actively looking to boost staffing levels in 2023. 94% of restaurant operators say they will likely hire additional employees during the next 6-12 months if there are qualified applicants available. At the same time, restaurant operators will continue to balance staffing needs with business conditions. 56% of operators say they would be likely to lay off employees during the next 6-12 months if business conditions deteriorate and the economy enters a recession.

About the New Mexico Restaurant Association

The New Mexico Restaurant Association’s mission is to empower the food and beverage industry by promoting and protecting common values and interests. It has more than 1,300 members in 111 cities all over New Mexico, who join together for meetings, seminars, and the hospitality industry to honor the industry’s top achievers. It has actively represented and promoted the food service industry in New Mexico since 1946. For more information on NMRA, visit www.nmrestaurants.org.