New Braunfels | April 2023

FLUCTUATING LABOR NEEDS

RISING RENT PRICES

The unemployment rate for workers in the dining industry in New Braunfels jumped to new heights at the onset of the pandemic but has shown recovery. The average annual salary for industry workers in the city is $26,824, not including all tips received.

The average cost of commercial space for restaurants to rent in New Braunfels steadily increased over the past ten years.

Average cost of market rent per square foot

$25

Unemployment for New Braunfels service industry workers

$21.60

2,000

$20.38

1,618

$18.54 $19.08

$20

$17.65

$16.50

$21.29

1,500

$19.68

$18.34

$18.12

$15

$17.20

1,000

The cost of commercial space for restaurants to rent has increased by 30.9% since 2013.

123

500

$10

326

SOURCES: GREATER NEW BRAUNFELS CHAMBER OF COMMERCE, U.S. DEPARTMENT OF LABORCOMMUNITY IMPACT

*THE DATA IS BASED ON QUARTER 1. SOURCE: COSTAR COMMERCIAL REAL ESTATE GROUPCOMMUNITY IMPACT

paper towels and latex gloves, also increased, Campion said. Campion is among other local restaurant owners who have had to adjust prices on their menu to keep up with product costs, but he said he is constantly watching forecasted prices to adjust his menu back down. “If you’re dining out all over the town or the state [or] country, the prices have denitely increased everywhere,” Campion said. “It’s hard to eat out, and we still have meals here that we try to be competitive with a meal at Whataburger. Those fast-food prices have gone up signicantly.” Alongside increased utility rates and property taxes in the area, the cost of renting out restaurant space in New Braunfels has increased by nearly 31% since 2013, according to CoStar Commercial Real Estate Group. “Talking with other restaurant folks in town, they’re all facing the

restaurants,” Hines said. “But what I see from where I sit is incredible resil- ience, bringing innovative products to consumers, adapting where they need to still be able to oer a really incredi- ble product that makes New Braunfels really special.” According to Hines, the economic growth of the hospitality indus- try—including restaurants in New Braunfels—has grown by 85% over the past decade. “It seems like the whole restaurant industry in this town is just booming,” Campion said. “You know, whenever I get to go eat out, it seems like every restaurant is incredibly busy. So it’s been great with how busy the growth here is in New Braunfels.”

complete renovations, and it plans to reopen this spring under a new name and fresh concept. The Birdhouse Fancy Chicken & Fine Wine will focus on all things chicken: smoked, fried, hot and cold. Wilkinson said the decision came after a lot of deliberation and was made so the business was not priced out of the market. “I’m tired of hearing myself tell customers that we’re short-staed, so I know they’re tired of it,” Wilkin- son said. Community support At least 13 new restaurants opened in New Braunfels in 2022, and an addi- tional six have opened so far in 2023. The average visitor is spending about 7% more on food and beverages year over year, according to Hines. “We know that the cost of goods may have increased for our

same things,” Campion said. “Be it if they rent it or they own it, their util- ity bills have gone through the roof. We’re nally seeing a little relief on gas that’s kind of come down over the

last two months.” Stang struggles

Wilkinson said he sourced the best meats and produce he could nd throughout the country to determine what items were on his menu at The River House, leading to needing well- trained and passionate cooks. “It’s just been really hard for us to get it back to what it was [before the pandemic],” Wilkinson said. “Whether we’re talking about the cost of labor because … not only do they need to work a lot, but they need to be really thoughtful and ded- icated and care.” The River House closed temporarily in January for deep cleaning and to

For more information, visit communityimpact.com .

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NEW BRAUNFELS EDITION • APRIL 2023