String Of Closings, Lower Sales Hurt Sector Through May
According to the latest monthly data from Applied Predictive Technologies, Miami’s restaurant industry is recovering from a rough start to 2015. Sales in the city’s restaurants fell to their lowest level for the year thus far in March, when they were up “a paltry 0.8%” over March 2014 sales, the Miami New Times reported. This made Miami the third-worst-performing region across the US for March, as national US restaurant sales averaged a 3.5% increase for the month. Last month, the Miami Herald noted a spate of “more than 20 high-profile” restaurant closures since May 1 that made industry insiders “on edge” with summer approaching. However, the New Times reports that the city began to see a recovery in restaurant sales in May, when there was 3.6% growth, which was above average US growth of 3.3%. Meanwhile, the newest data shows Miami’s restaurants saw a 4.2% boost in sales in June, higher than the US average of a 2.6% increase. Furthermore, May sales growth was higher than that of New York City, at 1.5%, and Los Angeles, at 3.3%. For June, Miami’s restaurant sales were higher than New York’s, at 3.%, and Chicago’s, at 2.9%. Coinciding with this uptick in sales at Miami’s restaurants has been a slowdown in restaurant closures. The New Times said its “July restaurant opening and closings recap shows that less than a half-dozen spots closed last month while nearly 20 opened for business.”
What This Means For Small Businesses
Miami’s restaurants and the businesses that serve them are often run by small business owners. This has been a rocky year for the city’s restaurant industry, but the latest APT data may be a sign the sector is recovering. Restaurant sales could also be an overall indicator of the city’s economic health, with an uptick in sales suggesting the city is back on the path towards a stronger economy.
Additional Reading
NFIB has previously detailed some of the ways in which it assists restaurant owners.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
