New Data Confirms that Texas Restaurants are Still in a Precarious Position, with Recovery Reversing for Many

Skyrocketing costs, Delta concerns, and the threat of tax increases could further erode restaurants' 2021 gains.

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Texas Restaurant Association

Sep 30, 2021, 17:27 ET

AUSTIN, Texas, Sept. 30, 2021 /PRNewswire/ -- New data released this week confirms that the restaurant industry's recovery has reversed, putting businesses large and small in a precarious position heading into winter.

According to a survey of operators conducted by the National Restaurant Association from September 7-15, 2021, nationally:

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Staff Attending Team Meeting In Empty Dining Room
Staff Attending Team Meeting In Empty Dining Room

  • A majority of fullservice and limited-service operators say business conditions are worse now than three months ago;
  • 78% of operators say their restaurant doesn't have enough employees to support current customer demand;
  • Costs are up across the board—91% of operators are paying more for food; 84% have higher labor costs; and 63% are paying higher occupancy costs; and
  • Profitability remains down with 85% of operators reported smaller margins than before the pandemic.

State-level data confirms a similarly bleak picture in Texas, where:

  • 72% of operators say their restaurant currently does not have enough employees to support its existing customer demand;
  • 91% of operators say their restaurant experienced a decline in customer demand for indoor on-premises dining in recent weeks because of the Delta variant; and
  • 89% of Texas operators say their profit margin is lower than it was prior to the COVID-19 outbreak.

Adding to restaurants' anxiety is the uncertainty coming from Washington, D.C., where lawmakers are considering several tax increases that would be devastating for small, midsize, and family-owned restaurants in particular. The National Restaurant Association sent a letter to Congress yesterday outlining the latest, troubling data and our concern that tax increases will further undermine restaurants' hard-fought recovery effort.

"The Texas Restaurant Association joins our colleagues at the National level in urging Congress to help, not hurt, restaurants in this critical phase of the pandemic," said Dr. Emily Williams Knight, Ed.D., President & CEO of the Texas Restaurant Association. "Our members have shown incredible grit, determination, and innovation, and they deserve every opportunity to rebuild their business so they can continue to serve their communities for years to come."

Read more about the latest data and our industry's letter to Congress here.

About the Texas Restaurant Association

Formed in 1937, the Texas Restaurant Association (TRA) serves as the advocate in Texas and the indispensable resource for the foodservice industry. As a leading business association, the TRA represents the state's $70 billion restaurant industry, which is comprised of more than 50,000 locations and a workforce of over 1.3 million employees. Along with the Texas Restaurant Foundation, the workforce development arm of the TRA, the Association proudly continues to protect, advance, and educate a growing industry as the TRA enters its 85th anniversary year.

SOURCE Texas Restaurant Association