US Accommodation and Food Services Sector NAICS 72

Jan 8, 2026 - Hourly Pay is Rising

• Rising minimum wages in 19 states starting this month will provide a pay hike to an estimated 8.3 million workers, The Wall Street Journal reported in January. The minimum‑wage hikes are set to reshape the hospitality industry, where labor costs make up one of the largest operating expenses. With many states now exceeding $15 an hour, hotels, restaurants, and tourism businesses face rising payroll pressures. Major metro areas are pushing even higher: Seattle’s wage is now $21.30, New York City’s $17, and Los Angeles will require $30 an hour for hotel and airport workers by 2028. These increases will likely accelerate long‑running industry trends, including menu price adjustments, reduced staffing levels, and greater investment in automation and self‑service technologies. At the same time, higher wages may help reduce turnover, a chronic challenge for hospitality employers.
• Three dominant themes forecast to shape US menus in 2026 are: comfort, global flavors, and value, according to the National Restaurant Association’s 2026 What’s Hot Culinary Forecast published in November. Based on surveys of hundreds of culinary professionals polled in October, the report shows consumers gravitating toward nostalgic, familiar foods, like smashed burgers, and global influences such as Caribbean curry bowls. Diners are also seeking flavor escapism, blending comfort with adventurous tastes. Not surprisingly, affordability and wellness remain central, driving interest in value menu options that won’t break the bank, protein‑packed meals, and low‑alcohol beverages. These trends reflect a broader desire for satisfying, approachable dishes that still feel fresh and globally inspired. For operators, the forecast signals strong demand for menu items that balance comfort, creativity, and cost‑consciousness heading into 2026. Allergen-friendly menus, ingredient transparency, and compostable/reusable packaging are other trends for 2026, per NRA.

• The US lodging sector is facing a new normal as revenue per available room (RevPAR) softens and AI reshapes demand in 2026, PwC Hospitality Directions forecast in December. RevPAR, the sector’s primary performance benchmark, is expected to dip 0.2% in 2025 before rising 0.9% in 2026, reflecting slower growth and lingering macroeconomic challenges such as high interest rates and inconsistent travel demand. Business and international travel remain weak, while leisure travel shows strength, especially in secondary markets. Supply growth is returning, which may pressure occupancy and margins if demand doesn’t keep pace. Moreover, competitive dynamics are shifting as AI and digital behaviors reshape booking and operations, requiring hotels to optimize technology, data, and branding strategies to stay visible and relevant, per PwC. Hotel owners and operators are encouraged to focus on cost discipline, margin protection, and strategic investment to navigate tighter conditions.
• The US Accommodation and Food Services sector topped the list of the 11 services sectors reporting growth in October as tracked by the Institute for Supply Management’s Services Purchasing Managers’ Index (PMI). Business activity in hospitality and food services remains strong despite inflation and cost pressures. Employment by the sector, which is seasonal and typically peaks in the third quarter, was relatively flat in September compared to a year ago, while average wages at accommodation and food services grew 3.7% year over year in August to $19.67 per hour, just $0.02 shy of their peak in May, according to the latest US Bureau of Labor Statistics data. Rising payrolls are a pain point for the sector, which must contend with rising minimum wages in many US states and competition for workers.