NAICS 72

Accommodation and Food Services in Birmingham, AL

Metro Market Score 43.8 (Moderate), ranked #73 of 298 metros. 2,676 establishments, 44,322 jobs.

Metro Market Score 43.8

Favorable 0-35

Moderate 35-48

Challenging 48-60

Difficult 60+

Moderate

ⓘ Lower is better. Relative to national accommodation and food services average.

Birmingham ranks in the top quartile for accommodation and food services market conditions, driven by above-average employment growth. With a market score of 43.8, conditions are relatively favorable compared to most metros.

Industry Concentration

31.9

LQ: 0.94

Rank #95 of 298 metros

Wage Competitiveness

57.4

$25,870 avg wage

Growth Trend

↑ 74.5

Employment growth index

Rank #77 of 298 metros

Wage Pressure

69.3

YoY wage change index

2,676 Accommodation and Food Services Firms in Birmingham

2,676

Establishments

+4.2% YoY

44,322

Total Employment

+1.8% YoY

$25,870

Average Annual Wage

+2.9% YoY

0.94

Location Quotient

Below national avg

Within Alabama

#4 of 7

accommodation and food services metros in state

Alabama state rank

#37 of 51

for accommodation and food services entry risk

vs State Median

0.0

matches median (43.8)

Birmingham vs Alabama Statewide

How this metro's accommodation and food services market compares to Alabama overall. The state ranks #37/51 for entry risk.

Measure	Birmingham	AL Statewide
Overall Score	43.8 Moderate	44.1 Elevated
Score Type	Metro Market Score	Entry Risk Score
Rank	#73 of 298 metros	#37 of 51 states

Metro and state scores use different methodologies (metro has 4 QCEW-based metrics; state adds BDS survival and momentum data). Direct score comparisons are approximate.

Other Industries in Birmingham

Information 50.3 Real Estate and Rental and Leasing 51.5 Retail Trade 51.8 Construction 52.6 Other Services 66.8 Finance and Insurance 67.1

Accommodation and Food Services in Other Alabama Metros

Huntsville 30.1 #15/298 Florence-Muscle Shoals 40.7 #53/298 Anniston-Oxford 41.8 #58/298 Mobile 52.5 #133/298 Gadsden 55.7 #159/298 Daphne-Fairhope-Foley 58.2 #171/298

Accommodation and Food Services Metros With Similar Conditions

Metros within 5 points of Birmingham's 43.8 score. Useful when comparing markets with comparable entry profiles.

Olympia-Lacey-Tumwater, WA 43.8 #72/298 Salem, OR 43.9 #74/298 Akron, OH 43.9 #75/298 Laredo, TX 43.7 #71/298 Salt Lake City-Murray, UT 44.2 #76/298 Lancaster, PA 43.4 #70/298 Twin Falls, ID 43.4 #69/298 Beckley, WV 44.4 #77/298 Greeley, CO 44.4 #78/298 York-Hanover, PA 44.5 #79/298

Accommodation and Food Services in States Bordering Alabama

State-level entry risk for accommodation and food services in adjacent states. Use this to weigh cross-border options.

Tennessee 29.5 #13/51 Mississippi 35.6 #21/51 Georgia 43.6 #35/51 Florida 53.6 #44/51

Browse Accommodation and Food Services in Other States

State-level entry risk reports for accommodation and food services across all 51 markets, sorted by rank.

About Metro Market Score: A weighted composite of industry concentration (25%), wage competitiveness (25%), wage pressure (20%), and employment growth trend (30%). Lower scores indicate more favorable conditions. For Birmingham's accommodation and food services sector, the wage competitiveness component (57.4) has the strongest pull on the composite. Metro scores use QCEW data only (no BDS survival data at metro level). Read full methodology →

Data Sources

Quarterly Census of Employment and Wages (QCEW), Bureau of Labor Statistics. MSA-level establishment counts, employment, wages, and location quotients for the Birmingham, AL MSA area.

Data period: 2024. Last updated: April 2026.

Metro Market Assessment