Illinois Hospitality Industry News: Key Updates and Trends in 2024

Sep 8 / Good Boy
#Advertisement
Empty space, drag to resize
As the hospitality industry in Illinois continues to evolve, the sector faces new challenges and exciting opportunities. From labor shortages to innovative dining trends, here are the latest updates shaping bars, restaurants, and hotels across the state.

1. Staffing Crisis Continues, Despite Wage Increases...

Illinois restaurants and bars are still struggling with staffing shortages, even after implementing wage hikes and incentives to attract new employees. The post-pandemic labor shortage has left many businesses operating with reduced hours or limited services.

Several restaurant owners in Chicago and Springfield have raised hourly wages and offered bonuses, but many report difficulty finding experienced staff. In a recent survey by the Illinois Restaurant Association (IRA), 65% of respondents said they were operating with fewer staff than needed, with many citing burnout and the rising cost of living as reasons for the shortage. Some establishments are turning to technology, like automated ordering systems, to bridge the gap.

2. New Legislation on Tipping and Service Charges...

As tipping practices come under scrutiny nationwide, Illinois lawmakers are considering new legislation that could affect the state's hospitality industry. One proposal would require restaurants to disclose mandatory service charges upfront and prohibit tip pooling without worker consent.

While some restaurant workers advocate for service charge transparency, many industry insiders worry the new regulations could complicate already strained employer-employee relationships. Additionally, there’s debate over whether transitioning away from a tipping model could negatively impact income for servers, who often rely on tips for the bulk of their earnings.

3. Sustainable Dining on the Rise...

Sustainability has become a major trend in Illinois’s hospitality scene, with more restaurants embracing farm-to-table practices, reducing food waste, and offering plant-based menus. Cities like Chicago and Evanston are leading the charge, with local ordinances encouraging businesses to adopt greener practices.

Several restaurants have recently introduced composting programs, reusable takeout containers, and eco-friendly delivery packaging. Some hotels are also participating in sustainability initiatives, offering digital check-ins and energy-efficient rooms as part of their green programs.

4. The Expansion of Ghost Kitchens...

Illinois has seen a rise in the popularity of ghost kitchens—restaurants without a traditional dining space that focus solely on takeout and delivery. These kitchens offer a wide variety of cuisines and have grown in response to increased demand for food delivery services, particularly after the COVID-19 pandemic.

Major cities like Chicago and Naperville are becoming hubs for ghost kitchens, with companies like CloudKitchens and Kitchen United leading the way. These facilities allow multiple restaurants to operate out of one kitchen space, reducing overhead costs and increasing flexibility. Analysts predict this trend will continue to grow as more customers opt for the convenience of delivery.

5. Bars and Breweries Rebound with Creative Offerings...

The bar and brewery scene in Illinois is bouncing back from the challenges of the past few years, with new innovations attracting customers. Many bars are introducing "theme nights" and craft cocktail classes to boost foot traffic. Breweries across the state are focusing on limited edition craft beers, seasonal brews, and collaborations with local chefs for unique tasting menus.

In response to the growing popularity of low-alcohol and non-alcoholic beverages, several bars have expanded their mocktail menus. Chicago’s first alcohol-free bar, Sans Bar, opened its doors in the West Loop earlier this year, highlighting a shift in drinking culture that prioritizes health and wellness.

6. Illinois Passes ‘BASSET’ Training Updates for Alcohol Servers...

In a move to enhance public safety, Illinois recently updated its Beverage Alcohol Sellers and Servers Education and Training (BASSET) program. The new regulations require all alcohol servers to complete an extended version of BASSET training that includes modules on responsible alcohol sales, dealing with intoxicated customers, and ID verification.

With an increasing focus on safety in the hospitality industry, the state has added penalties for businesses that fail to ensure their employees complete this mandatory training. These updates aim to curb over-serving and reduce alcohol-related incidents across Illinois’s bustling bar scene.

7. Hotel Occupancy Levels Recovering, But Corporate Travel Still Lags...

Hotels across Illinois, especially in tourism-heavy cities like Chicago, have seen a rebound in occupancy rates compared to last year. Summer 2024 saw occupancy levels returning to pre-pandemic numbers, driven by leisure travelers and major events such as Lollapalooza and the Chicago Auto Show.

However, the hotel industry is still facing a sluggish recovery in corporate travel. Many companies have adopted hybrid or remote work models, reducing the need for business travel. To offset this, Illinois hotels are increasingly offering "workcation" packages, combining business amenities with leisure experiences to appeal to remote workers looking for a change of scenery.

8. Restaurant Openings and Closures...

The Illinois dining landscape continues to shift, with several high-profile restaurant openings and closures making headlines. Celebrity chef Stephanie Izard’s latest venture, Cabra Cocina, recently opened in Chicago's Fulton Market District, offering a fresh take on Peruvian cuisine.

Meanwhile, some longtime favorites have shut their doors due to rising rents and post-pandemic financial strain. Notably, the historic Gene & Georgetti, a Chicago steakhouse staple, closed its downtown location after 80 years of service, citing the economic impact of the pandemic.

9. Festival Season Fuels Restaurant Boom...

Illinois's festival season has been a boon for the hospitality industry, with large events like Taste of Chicago and Pitchfork Music Festival drawing crowds from around the world. Restaurants and food trucks that cater to these events have seen record sales, helping offset slower periods earlier in the year.

Many restaurants have partnered with local festivals to create exclusive, festival-only menu items, capitalizing on the excitement. Several operators in the hospitality industry are already planning for next summer, hoping to make the most of these lucrative events.

10. New BASSET Training for Cannabis Consumption Spaces...

Illinois's festival season has been a boon for the hospitality industry, with large events like Taste of Chicago and Pitchfork Music Festival drawing crowds from around the world. Restaurants and food trucks that cater to these events have seen record sales, helping offset slower periods earlier in the year.

Many restaurants have partnered with local festivals to create exclusive, festival-only menu items, capitalizing on the excitement. Several operators in the hospitality industry are already planning for next summer, hoping to make the most of these lucrative events.

Conclusion...

The Illinois hospitality industry continues to adapt and evolve, with many businesses finding new ways to thrive in a rapidly changing landscape. While challenges like staffing shortages and evolving legislation persist, the state’s bars, restaurants, and hotels are staying resilient by embracing innovation and responding to customer demand. Keep an eye on these trends as they continue to shape the future of hospitality in Illinois.

Courses

Created with