US Accommodation and Food Services Sector NAICS 72
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Industry Summary
The 771,900 establishments in the US accommodation and food services sector prepare meals, snacks, and beverages to customer order for immediate consumption or provide short-term lodging for travelers and vacationers.
Economic Sensitivity
The accommodation and food service sector is driven by discretionary spending and is vulnerable to economic downturns.
Labor Intensive, High Turnover
Food service and accommodation operations are labor-intensive, and the sector struggles with turnover.
Recent Developments
Feb 8, 2026 - More H-2B Visas
- The Trump administration has moved to double the number of H‑2B guest worker visas this year, The New York Times reports. The addition of 65,000 seasonal worker visas eases staffing pressures for the US accommodation and food service sector, but fails to resolve long‑term workforce challenges in hospitality, which relies heavily on seasonal labor for housekeeping, food prep, cooking, and front‑of‑house roles. With hospitality businesses facing severe labor shortages, the expanded visa cap offers immediate relief by increasing access to legally authorized workers during peak seasons. This helps hotels, resorts, and restaurants operate at fuller capacity, avoid service cutbacks, and stabilize labor costs that have risen due to domestic worker shortages. However, the policy shift also highlights the sector’s structural dependence on foreign seasonal labor and exposes operators to future political volatility, since supplemental H‑2B allocations are discretionary and subject to changing immigration priorities.
- 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.
- Producer prices for accommodations rose 1.5% in November after rising 1.7% in the previous November-versus-November annual comparison, according to the latest US Bureau of Labor Statistics data. Employment in the accommodation and food services sector rose 1.1% year over year in December, while the average industry wage increased 4% year over year in November to $19.93 per hour, a nickel shy of its record high in October, BLS data show. Minimum wage hikes by states in 2026 on the heels of hourly pay raises last year are driving the sector’s labor costs upward. Over the past decade, average wages at accommodation and food services have climbed 65.9%, higher than overall private wage growth of 49.7%.
Industry Revenue
US Accommodation and Food Services Sector
Industry Structure
Industry size & Structure
The accommodation and food services sector comprises 771,900 establishments that employ 14.2 million workers and generate $1.3 trillion in annual revenue, according to government sources.
- The accommodation and food services sector represents 3.7% of the nation's Gross Domestic Product (GDP) and employs about 9% of the country's workers.
- The sector is fragmented with the 20 largest firms representing 13.3% of revenue.
- In addition to employer establishments, the accommodation and food services sector has 491,800 owner-operated establishments with no employees. The subsectors with the highest number of nonemployer establishments are special food services (56%), restaurants and other eating places (23%), and traveler accommodation (11%). The owners of nonemployer firms typically perform the work and may outsource support functions like marketing and accounting.
- The US Accommodation and Food Services sector shed nearly 20% of its employees in 2020 due to the pandemic but recovered to surpass 2019 levels in 2024, according to the Bureau of Labor Statistics.
Industry Forecast
Industry Forecast
US Accommodation and Food Services Sector Industry Growth
Source: Vertical IQ and Inforum
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