Minnesota Hospitality Survey Finds 50% Expect Lower Summer Profits as Paid Leave and Inflation Raise Costs
Updated
Updated · WJON News · Jun 25
Minnesota Hospitality Survey Finds 50% Expect Lower Summer Profits as Paid Leave and Inflation Raise Costs
3 articles · Updated · WJON News · Jun 25
Summary
More than half of 119 Minnesota hospitality businesses surveyed in May reported lower revenue and profits than a year earlier, and about 50% expect profits to trail last summer.
Nearly 60% said wholesale prices rose at least 5% from a year ago, while only about one-third raised retail prices that much, squeezing margins as some operators blamed tariffs.
More than 60% said Minnesota's paid leave policy, implemented in January, increased administrative time and operating costs, and roughly 40% reported more employee absences.
Business owners also cited weaker discretionary spending, high gas prices and reduced Canadian travel, reinforcing broader pessimism about the summer tourism season and the next six months.