The Retail Market’s Food and Beverage “Bounce Back” Felt in Utah
Bounce Back
According to new data from The Federal Bureau of Labor Statistics, eating and drinking places added 123,700 employment positions in February 2022. The addition brings the national workforce within 800,000 of pre-pandemic numbers. The return to some normalcy has brought the national unemployment down to 3.8% while increasing labor force participation to 62.3%.
According to an article by Restaurant Business, the figures show in February, hiring rebounded despite the surge in the omicron variant. The spike in COVID-19 infections started to crest during the month but didn’t flatten until the tail end.
Supply Chain Shortage
According to Restaurant Dive, supply chain pressure is pushing operators to trim costs by shortening menus and investing in labor-saving technology to free up cash for wage increases. Some retail food and beverage clients have told Mountain West agents that menus are simplified and include fewer options.
Leased Properties
Researchers at Mountain West Commercial are seeing a correlation between increased employment and properties leased in the food and beverage industry.
Since the beginning of 2022, the retail division has sold or leased 21 properties used for food and beverage compared to the same time last year. More food and beverage establishments opening means more jobs in the community and a potential boost to the local economy.
Experts say this year we could see more restaurants big and small
Though these forecasted obstacles would be staggering and say a swath of cheap commercial real estate could allow food halls.
Which is something Mountain West Commercial Real Estate has already been involved with.
Back in 2020, Mountain West was pleased to represent both the landlord and the tenant in the transaction of HallPass, the first food hall to arrive in Utah.
According to GlobeSt. Real Estate Trade Journal by the ended of 2020 there was an estimated 450 food halls running throughout the United States.
HallPass, is named a “red hot hit” by Forbes Magazine, is 11,000 SF of the latest greatest hits of food trends. With food options ranging from ramen to lobster, developer Reed Slobusky of SkinnyFATS, a Nevada-based company, and his culinary crew have developed all the food concepts at the heart of HallPass. Andy Moffitt, Mountain West Broker, said, “We are very excited to welcome HallPass to Utah! This is a concept that has never been seen before here and we are excited about the energy this will bring to The Gateway!”
Outlook
According to a an article from Restaurant Dive, restaurants are bracing for change and with mounting labor and supply shortages, more owners will invest in technology that makes them less reliant on employees. Experts say this will also help minimize costs and maximize efficiencies.
Half of U.S. operators plan to adopt automated, labor-saving technology in the next two to three years, according to Lightspeed. Forty-one percent of U.S. operators say they are working with less staff than they require. The restaurant tasks that will be automated by machines will still mostly consist of simple, back-of-house responsibilities like dishwashing.