Report: Boston’s Restaurant Revenue Struggles to Keep Up with Inflation
The Boston Business Journal reported on Thursday, March 13, that Boston restaurants are bringing in only 18% more revenue than they did before the COVID-19 pandemic. This rate is below the rate of inflation and the state average.
According to the report, the prevalence of remote work continues to impact the city’s dining establishments. As the Boston Business Journal noted, the city’s office vacancy rate remains at 23% at the end of 2024. Cities such as Boston and Cambridge rely heavily on office workers and are experiencing a slower recovery in restaurant revenues.
The Boston Business Journal compared data for various Massachusetts cities and towns. Bookline’s revenue, for example, increased by 30%. Needham saw only a 7% increase, and Natick’s revenue grew by less than 2%. Quincy recorded a nearly 38% increase in restaurant revenue since the pandemic concluded.
In contrast, Massachusetts restaurant revenue was up by 25% in the fourth quarter of 2024 compared to the last quarter before the COVID-19 pandemic began in 2020. This increase factors in a 23% rise in the consumer price index.
