SQUEEZED FROM ALL SIDES: Restaurants Pressured by Labor, Food, Insurance Costs.

The food services industry is expected to have a successful year in 2024, but restaurants and bars are facing various challenges. These include higher costs in labor, food, and insurance, with 38% of restaurants not making any profit in 2023. Insurance costs are rising, particularly for liquor liability coverage, and staffing issues and extreme weather events are also impacting businesses. Many restaurant owners may be underinsured and at risk of damages and disruptions. Insurance specialists who focus on insuring restaurants and bars face challenges in a constantly changing market, with carriers frequently entering and exiting. It is advised to choose carriers based on more than just price, as newer carriers may not fully understand the laws and exposures in different states. Working with one carrier to create an insurance program for restaurants is recommended, but this may not always be possible in the current market. External factors, such as pending joint employer regulations and the push to end employer tip credits, can also affect restaurant owners. Despite these challenges, there are still opportunities for growth in the industry. [Extracted from the article]