As we move into summer, it’s turning into peak restaurant and bar season. Perhaps you’ve been going out to these places more but have still noticed the changes many establishments have made since the COVID-19 pandemic.
A new report from the Wisconsin Policy Forum shows that recovery largely continues for the state’s food and bar scene, both for employment and sales. There are, however, some lingering impacts from the pandemic, as many establishments keep reduced hours and some still struggle to attract and retain workers. Wisconsin Policy Forum senior researcher Joe Peterangelo shares some more insight on the report.
"Overall, we're seeing a number of positive indicators, including employment being back basically to where it was prior to the pandemic and more overall restaurants operating in Wisconsin than before the pandemic," explains Peterangelo.
According to the Restaurant Association some restaurants are still experiencing more challenges than others. Specifically, mid-priced sit-down restaurants are more influenced by rising prices and slower to recover. However, higher-end restaurants don't suffer as much from that because their clients have more disposable income.
Along those lines, inexpensive restaurants have fewer challenges because they have lower costs. Mid-price places and downtown restaurants relying on lunch crowds are still experiencing lingering effects from the shift to more remote and hybrid work modules.

Peterangelo notes that inflation has kept overall revenues for restaurants and bars just below the pre-pandemic trend line, and one of the report's most significant trends is how many restaurants are scaling back their business and shifting operating hours.
"Many businesses found during the pandemic that they could have a similar bottom line with a little bit reduced operation," he says. "So, they're focusing really on the days and hours that they can make the most bang for their buck and have a staff that is appropriate to the demand that they have as a business."
Wisconsin bars have been experiencing a longer-term decline, with about 20% fewer bars in the state in 2022 compared to 2003, according to Peterangelo. He notes this is in part due to smaller family-owned bars in smaller towns closing because there wasn't anyone to take on operations. "There's more been a shift to fewer establishments with as many employees, not a reduction in consumption," Peterangelo adds.

For consumers, the pricing increases have slowed down as well. Peterangelo says this is due to wages not increasing as quickly as they did during the pandemic, the easing of some of the supply chain issues, as well as whole sale food prices easing. "So all those factors are positive from a consumer perspective because we're not likely to see quickly increasing prices in the near future," he says.
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