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Why do food and beverage labor costs vary across hotel markets?

Union strength, wage laws and service expectations shape the gaps among destinations
CoStar Analytics
August 14, 2025 | 6:00 P.M.

Labor costs for hotel food and beverage operations are shaped less by operational efficiency and more by each market's underlying economic and regulatory environment. While the numbers vary widely, the reasons behind them often come down to three core factors: labor market conditions, unionization and service expectations.

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