To circumvent trade union rules, many hotels rent their space to third-party operators who are not subject to the trade union contract. According to industry sources, the meagre gains are due to the large wage increases negotiated by the powerful hotel workers` union under its recent inter-professional contract. “Hotel employees receive nothing that is not consistent with the economy as a whole and the wage levels of the less skilled workforce,” he said. Joel Rosen, president of GFI Hospitality, said a trendy restaurant is helping to generate buzz in a hotel, but revenue and expenses still need to be made. Since April, when we last came to an end with the turbulence and uncertainty caused by the pandemic, hotels and restaurants have been constantly evolving as hotel owners and operators consider whether they can reopen and how they can reopen. While some states continue the slow process of reopening, others have resumed closure due to the continued increase in confirmed positive cases of COVID 19. In many cases, areas where the virus was brought under control in April (such as Florida and Texas) are now facing increasing infections, while areas affected by the flood in April (such as New York) are cautiously reopening due to the decrease in the number of reported cases. No one can say what will happen next week, let alone next month or the next quarter, and uncertainty is the new normal. But the last few years have been difficult for the hotel restaurant. Nevertheless, rising wages have influenced hotel supply. “I think every hotel we`ve worked on and the union is subject to has reduced its F-B footprint,” he added. We see a lot of hotels that go to the “fall-and-go” concept, mainly because of union requirements. Peter Wards New York Hotel and Motel Trades Council – whose local union 6 represents bar and restaurant employees – met in 2012 with the New York Hotel Association to represent hotel owners to negotiate a new industry-wide contract. The contract, which was extended three years later until 2026, gives employees increased wage increases each year.
The number of restaurants opened at the federal level decreased last spring by 1 per cent from the previous year to 660,755, as the market research group NPD Group reported.