NAICS 72

Accommodation and Food Services in California: 2026 Market Risk Report

Entry risk 57.2 (High), ranked #47 of 51 states. 93,732 establishments, 1,667,340 jobs.

Entry Risk Assessment

Entry Risk Score 57.2
Low 0-30
Moderate 30-42
Elevated 42-55
High 55+
High Risk

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

Labor cost dynamics in California accommodation and food services are elevated, with wage pressure at 72.0. This contributes to the state's overall entry risk ranking of #47 out of 51.

5-Year Firm Retention
15.7%
Percentile within industry
Rank #44 of 51 states
Growth Momentum
↑ 53.8
Scale of 0-100
Rank #16 of 51 states
Establishment Density
18.6
vs. national average
Rank #24 of 51 states
Market Volatility
41.8
Lower is more stable
Wage Pressure Index
72.0
Labor cost pressure

93,732 Establishments in California

93,732
Establishments
+1.3% YoY
1,667,340
Total Employment
-0.4% YoY
$35,262
Average Annual Wage
+5.6% YoY

California vs National Accommodation and Food Services Average

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

Metric CA National Difference
Entry Risk Score 57.2 40.0 +17.2
5-Year Retention 15.7% 51.0% -35.3
Growth Momentum 53.8 41.1 +12.7
Market Volatility 41.8 23.9 +17.9
Establishment Density 18.6 27.0 -8.4
Wage Pressure 72.0 33.4 +38.6

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

California Ranks #47 of 51 for Accommodation and Food Services

California ranks #47 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
#47 California You 57.2 high
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 California 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 California's accommodation and food services market compares to bordering states.

Oregon 42.8 #32/51 Arizona 46.9 #40/51 Nevada 64.0 #49/51

Other Industries in California

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 →