This Industry Outlook is a portion of the 2018 Arizona CFO Spotlight Survey Report
The 2018 Arizona CFO Spotlight Survey attracted respondents from a number of industries in Phoenix and Tucson. We will highlight the hospitality & restaurant segment here in terms of growth, risk factors, strengths and trends.
Survey respondents in the hospitality and restaurant industry are among the smallest group of participants in the 2018 Survey; they are based in both Phoenix and Tucson. Business types include resorts, golf courses, hotels and other business venues in addition to restaurants. Over the last three years, optimism has improved among these leaders for both the state and city economic climate. All respondents are "somewhat optimistic" about the prospects of their companies in 2018, and 75% of leaders expect slight increases in revenue over the previous year. Regulatory cost reductions will be the biggest factor to improve the financial climate, according to respondents. This group is counting on continued consumer confidence to support business and leisure travel and recreation, which ties to the health of the U.S. economy overall. Half of respondents plan to increase prices in the coming year while the other half will keep prices the same. This compares to 75% citing price increases in the 2017 Survey.
CFOs in hospitality are concerned about anticipating the next big trend that will get customers in the door, and how they can adapt their business model quickly to stay relevant.
With owner transition and retirement a concern among hospitality and restaurant leaders over the past two years of the Survey, they cite challenges in developing consistent management. There is also increasing pricing pressure as a result of talent shortages as well as minimum wage and sick leave policies. A third of CFOs in the Survey note reductions in vacation pay to manage the costs of Arizona’s sick leave legislation. Properties are also paying closer attention to automation to increase staffing efficiency while also responding to consumer demand for online tools. Communicating their company's vision and mission has become increasingly important to maintain quality reputations and keep talent.
"My biggest focus is to get a clearer understanding on regulatory issues with the status of overtime law in limbo, minimum wage, immigration and commodity prices. Those are the big ones."
Average Number of Employees
Revenue in 2018
- 75% Will increase slightly 75%
- 25% Decrease slightly 25%
Top Areas of Focus
- Navigating shifting regulations
- Long-term business strategies
- Improving margins/cutting spending
- Lobbying against increased regulation
100% somewhat optimistic
Access to Cash?
not a problem so far
Industry Price Pressures?
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