MN Hospitality Sees Delayed Recovery from COVID-19

UNDATED (WJON News) -- A statewide report following the hospitality industry shows restaurants continue to struggle after being hit by the COVID-19 pandemic.

Hospitality Minnesota CEO and President Angie Whitcomb says:

“Eating and drinking establishments lost a net 57,000 jobs in the first two months of this year, which is the weakest two-month stretch since November and December of 2020.”

Whitcomb says our lodging industry also faces a delayed recovery, with metro markets’ average yearly occupancy rate down by over 9.9%.

While the number of restaurant locations in Minnesota grew 6% in 2019, employment shrunk by 3%. Whitcomb adds that wages have jumped 32%, but total payroll is only up 23%.

“And what that means is restaurants are trying to do more with fewer people. Despite offering higher pay for employees, on any given day in Minnesota, we are short about 15,000 restaurant workers.”

The 2025 State of Hospitality Report says here in central Minnesota the number of people employed in the food service industry has increased 3.5 percent, and the number of food establishments has increased 7.1 percent.

The report says the Central Minnesota region had 16,690 employees in 2019 and it now has 17,282 employees. The number of food establishments in 2019 was 833 and there are now 892.

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As for the loading industry, the occupancy rate in central Minnesota is down 6.1 percent. The average year occupancy rate in 2019 was 52.6 percent and in 2024 it was 49.4 percent.