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How does dining out help the Arizona economy?

Why dine out? A fair question. You’re probably thinking, “The economy is in trouble. What could I possibly do to make a difference? Take my family out to dinner? That can’t possibly help.”

As a matter of fact, it can. Many people depend on the restaurant industry for their livelihood. And while just one family going to one dinner won’t turn around the economy, a concerted effort by hundreds or thousands of people is a much different story with what we believe will be a much more positive ending.

According to a recent article in the Arizona Republic, taxable sales from restaurants and bars now rivals that of Arizona’s ravaged housing industry. Just how much are we talking about? In 2009, contracting should account for about 13.6 percent of all taxable sales, while restaurants and bar should account for about 10.4 percent.

On a national level, the restaurant industry serves more than 130 million guests each day, at nearly 1 million locations across the United States, employing approximately 13 million people. In addition, restaurants are expected to generate $566 billion in sales this year, about 4 percent of the U.S. gross domestic product.

Click here to watch a message from the National Restaurant Association.

 

Restaurant Information

  • Almost 1 in 10 working Americans are restaurant employees
  • There are approximately 277,400 employees in the food service industry in 2009
  • Job growth is expected to increase by 21.4 percent by 2019 which equates to 59,300 new jobs
  • In 2007, there were 8,758 eating-and-drinking places in Arizona
  • Each $1 spent in restaurants in Arizona generates an additional $0.99 in sales for other industries in the state
  • It is projected that in 2009, restaurants in Arizona will have $8.7 billion in sales
  • Each additional $1 million spent in eating and drinking establishments in Arizona generates an additional 26.4 jobs for the state
  • Restaurant jobs represent 11 percent of total employment in Arizona
  • It is projected that in 2009, restaurants in the US will have $565.9 billion in sales
  • More than one out of four Americans got their first job in a restaurant
  • Nearly half of all Americans have worked in a restaurant at some point in their working careers
  • America’s eating-and-drinking places employ more minority managers than any other industry
  • So far for FY2008, 9.19% of Arizona’s state sales tax collections came from restaurants/bars
  • “Arizona is a leading force in nationwide restaurant growth and continues to be a critical ingredient in the states economy, spurring valuable dollars, for the tourism, restaurant and hospitality industries”
  • Arizona Restaurant Industry Data PDF

Source: Figures are based on National Restaurant Association research and data from federal and state government agencies.

http://www.restaurant.org/pdfs/research/2009Factbook.pdf

Arizona Tax collections on Restaurants/Bars

Fiscal Year is July 1 to June 30

Restaurants/Bars (FY 2008/month)

  • July 2008 – $36,570,220 – (down 7.3%)*
  • August 2008 – $35,133,366 – (down 3.7%)*
  • September 2008 - $35,989,530 – (down 0.8%)*
  • October 2008 - $35,890,003 – (down 7.7%)*
  • November 2008 - $37,433,962 – (down 6.0%)*
  • December 2008 - $37,413,753 – (down 8.8%)*
  • January 2009 - $37,687,490 – (up 1.3%)*
  • February 2009 - $37,854,330 – (down 6.9%)*
  • March 2009 - $39,744,470 - (down 5.1%)*
  • April 2009 - $42,356,205 - (down 8.2%)*
  • May 2009 - $38,187,449 – (down 8.5%)*

Total So Far For FY2008: $414,260,778

Total tax revenue for 2008 Budget from Restaurants/Bars = $414,260,778 – (Down 5.7% over FY2007). Through May 2009 (11 months of fiscal year).

Restaurants/Bars Sales Tax = 9.3% of 2008 Arizona State sales tax collections (not including June)

* – Compared to same month FY 2007/2008

*Nearly 50% of Arizona’s $9.5 billion budget comes from Sales Tax according to Arizona Department of Revenue records. The other 50% comes from Individual Income Tax, Corporate Income Tax and other taxes

*Approximately 4.3% of Arizona State Budget comes from Restaurants/Bars. (Based on 11 months out of FY2008)

 

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