Ohio restaurants report a decline in business, increase in costs

Bob Evans restaurant in Bowling Green

From OHIO RESTAURANT ASSOCIATION

According to the latest Ohio Restaurant Association (ORA) Business Impact Poll, 56% of Ohio restaurant operators report a decline in sales compared to previous months in 2022. The findings are echoed in the most recent National Restaurant Association Restaurant Business Conditions survey as 54% of Ohio operators say business conditions are worse now than they were three months ago.

In addition to decreased sales, soaring costs across all parts of the restaurant industry continue to create challenges for operators. The ORA Business Impact Poll finds that 99% of respondents have seen food costs rise dramatically since June. Nationally, 91% of restaurants report increasing menu prices to offset the additional costs, according to the National Restaurant Association.

“Restaurant operators are masters at balancing adaptation and innovation to provide amazing service for their customers,” said John Barker, ORA president and CEO. “While operators are more pessimistic about the economy, they aren’t letting that get in the way of serving great food, providing exceptional service, and creating a memorable experience for guests.”

Hiring shortages and rising labor costs add an extra layer of challenges as 91% of Ohio operators report an increase in labor costs with 31% reporting a labor cost increase of more than 15%. At the same time, 87% of total respondents face a staffing shortage and, in order to be fully staffed, 32% report needing about 20% more employees. 

Comparatively, the National Restaurant Association finds 65% of operators say their restaurant currently does not have enough employees to support existing customer demand while 81% of operators say their restaurant currently has job openings that are difficult to fill. As a result, guests are noticing restaurants closed on certain days and operating with limited hours.

“The restaurant industry is built on hospitality, and to ensure we can provide the highest levels

of service, we hire talented people,” said Barker. “We know people have been reconsidering their careers recently, and we hope they will look closer at the opportunities in our industry. Restaurants have good-paying jobs available at every experience level for people from every background. And these jobs provide the skills necessary to be successful in any career, and in life. Our industry has launched thousands and thousands of careers that started with washing dishes, cleaning tables and prepping food and led to management and chef roles, operating a franchised brand and even restaurant ownership. Everyone is welcome at our table.” 

The Ohio Restaurant Association Business Impact Poll was conducted between August 13-17, 2022. The full report can be found here. The National Restaurant Association Research Group conducted a survey of restaurant operators July 14- Aug. 5, 2022. Find a report of key of the national findingshere.