Many restaurant owners in New York are reporting increasingly worse financial conditions for the industry as their struggles continue in the wake of the COVID-19 pandemic, according to a survey released on Wednesday. 

The survey results from a trade group, the New York State Restaurant Association, underscore the ongoing financial hardship for many restaurant owners and operators in the state, with 41% reporting their business conditions are worse than they were three months ago. 

Many restaurant operators, 39%, believe their business conditions will never return to normal. And 42% of operators surveyed believe it will take more than a year before some sort of normlacy is re-established. 

Restaurants were rocked early on by the closure of businesses and public gathering spaces. In the last year, inflation and a tight labor market have made operations difficult. 

“Despite the wide variety of actions taken to address these issues, the numbers are compelling in terms of the continued negative impact on the industry and our continued struggles,” said Melissa Fleischut, the president and CEO of NYSRA.

Nearly all restaurants surveyed — a whopping 88% — have increased menu prices, with 85% reporting higher food and beverage costs. Increased labor costs have also impacted 86% of restaurants in the state. 

At the same time, 77% of restaurants have had to reduce hours of operations and 47% are closed on days they would normally be open. More than a third of operators have postponed plans for expansion and nearly half, 49%, have stopped operating at full capacity. 

“This survey should serve as a reminder that the restaurant industry isn’t in the clear," Fleischut said. "A busy Friday night is great, but don’t forget that the same restaurant may be closed for lunch or dinner service on days when they used to be open. The recovery is still ongoing for most, and many will never get back the lost revenue from the worst part of the pandemic."