According to the latest research from the Wisconsin Policy Forum, Wisconsin’s restaurant and bar industry has rebounded.
More businesses are operational than prior to the COVID-19 pandemic, and employment and sales are showing strong recovery. That said, reduced hours of operation continue for many establishments, as does a struggle to attract and retain staff. There has been a rise both in worker earnings and consumer prices, but increases have slowed with the gradual ease of inflation, demand for workers, and supply chain issues.
The number of restaurants and bars in Wisconsin has largely recovered, according to the most recent available preliminary federal data, exceeding 2019 levels for the first time in the second and third quarters of 2023. The third quarter of last year saw 1.6% more bars and restaurants in the state than the same quarter of 2019. However, bars were lost at a faster rate than restaurants during the pandemic, and it is possible that their numbers remain down.
The total state revenue generated by restaurants and bars in Wisconsin reportedly topped $578 million in 2023, 17.3% higher than in 2019 but modestly lagging the pace of inflation (19.2%).
As of this February, federal estimates showed that bars and restaurants employed 203,700 workers, up by around 0.4% or 900 from February 2020. Employment peaked previously in August 2023 at 218,100 — still short of the pre-pandemic high of 219,200 in the same month of 2019. Still, job recovery in the industry still lags behind the state’s overall economy. It is slightly stronger in Wisconsin than nationally, however.
Data released in April showed the median annual wages for employees in food preparation and serving occupations increased by 4.2% in 2023, in line with the pace of growth for all occupations. This is a slowdown from the pandemic era, in which median annual wages for these workers rose 29.8% between 2019–22, far outpacing other occupations in Wisconsin (16.8%) and inflation (14.5%).
The full report is available here.
