NAICS 72

Accommodation and Food Services in Arizona: 2026 Market Risk Report

Entry risk 46.9 (Elevated), ranked #40 of 51 states. 13,944 establishments, 310,498 jobs.

Entry Risk Assessment

Entry Risk Score 46.9
Low 0-30
Moderate 30-42
Elevated 42-55
High 55+
Elevated

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

⛔High Barrier to Entry

Arizona's accommodation and food services sector shows high establishment density (top 5 nationally) paired with firm retention in the bottom 5. This combination indicates elevated competitive pressure on new market entrants.

5-Year Firm Retention
9.8%
Percentile within industry
Rank #47 of 51 states
Growth Momentum
↑ 67.4
Scale of 0-100
Rank #9 of 51 states
Establishment Density
0.0
vs. national average
Rank #1 of 51 states
Market Volatility
19.4
Lower is more stable
Wage Pressure Index
50.0
Labor cost pressure

13,944 Establishments in Arizona

13,944
Establishments
+0.4% YoY
310,498
Total Employment
+1.6% YoY
$31,316
Average Annual Wage
+4.5% YoY

Arizona vs National Accommodation and Food Services Average

How Arizona's accommodation and food services market compares to the national average across all 51 states.

Metric AZ National Difference
Entry Risk Score 46.9 40.0 +6.9
5-Year Retention 9.8% 51.0% -41.2
Growth Momentum 67.4 41.1 +26.3
Market Volatility 19.4 23.9 -4.5
Establishment Density 0.0 27.0 -27.0
Wage Pressure 50.0 33.4 +16.6

Green = favorable vs national average. Red = less favorable. Metrics are relative within accommodation and food services only.

Arizona Ranks #40 of 51 for Accommodation and Food Services

Arizona ranks #40 out of 51 states for accommodation and food services market entry conditions.

Accommodation and Food Services Entry Risk by State

Rank State Risk Score Classification
#1 Delaware 19.8 low
#2 North Carolina 23.4 low
#3 New Mexico 24.5 low
#4 Idaho 26.2 low
#5 Wisconsin 28.2 low
#40 Arizona You 46.9 elevated
Entry Risk by State Alaska — 31.6 · #14 Alabama — 44.1 · #37 Arkansas — 36.9 · #26 Arizona — 46.9 · #40 California — 57.2 · #47 Colorado — 46.9 · #41 Connecticut — 37.3 · #27 District of Columbia — 81.4 · #51 Delaware — 19.8 · #1 Florida — 53.6 · #44 Georgia — 43.6 · #35 Hawaii — 66.1 · #50 Iowa — 39.0 · #29 Idaho — 26.2 · #4 Illinois — 39.5 · #30 Indiana — 37.9 · #28 Kansas — 34.2 · #18 Kentucky — 36.9 · #25 Louisiana — 43.8 · #36 Massachusetts — 28.4 · #7 Maryland — 31.7 · #15 Maine — 55.0 · #46 Michigan — 29.2 · #10 Minnesota — 34.9 · #19 Missouri — 47.2 · #42 Mississippi — 35.6 · #21 Montana — 46.1 · #39 North Carolina — 23.4 · #2 North Dakota — 29.5 · #12 Nebraska — 41.5 · #31 New Hampshire — 28.8 · #8 New Jersey — 43.3 · #34 New Mexico — 24.5 · #3 Nevada — 64.0 · #49 New York — 58.6 · #48 Ohio — 29.3 · #11 Oklahoma — 35.0 · #20 Oregon — 42.8 · #32 Pennsylvania — 36.8 · #24 Rhode Island — 28.3 · #6 South Carolina — 29.2 · #9 South Dakota — 36.7 · #23 Tennessee — 29.5 · #13 Texas — 46.0 · #38 Utah — 36.5 · #22 Virginia — 33.6 · #16 Vermont — 51.0 · #43 Washington — 42.9 · #33 Wisconsin — 28.2 · #5 West Virginia — 33.7 · #17 Wyoming — 55.0 · #45
Low Moderate Elevated High

Tap a state to view details

About Entry Risk Score: A weighted composite of firm retention, growth momentum, market volatility, establishment density, and wage pressure. Lower scores indicate more favorable conditions. Read full methodology →

Data Sources

Data period: 2024. Last updated: February 2026. Next refresh expected: Q2 2026 (BLS QCEW update).

Compare to Another State

How does Arizona stack up against other states for accommodation and food services?

Select a state above to see the comparison

Accommodation and Food Services in Neighboring States

How Arizona's accommodation and food services market compares to bordering states.

New Mexico 24.5 #3/51 Utah 36.5 #22/51 Colorado 46.9 #41/51 California 57.2 #47/51 Nevada 64.0 #49/51

Other Industries in Arizona

Construction → Healthcare and Social Assistance → Retail Trade → Professional, Scientific, and Technical Services → Finance and Insurance → Real Estate and Rental and Leasing → Administrative and Support Services → Information → Other Services →