NAICS 72

Accommodation and Food Services in San Jose-Sunnyvale-Santa Clara, CA

Metro Market Score 53.3 (Challenging), ranked #140 of 298 metros. 5,101 establishments, 84,620 jobs.

Metro Market Assessment

Metro Market Score 53.3
Favorable 0-35
Moderate 35-48
Challenging 48-60
Difficult 60+
Challenging

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

💰High-Cost MarketRising Wages🌱Emerging Market

Wage costs in San Jose-Sunnyvale-Santa Clara's accommodation and food services sector are well above the metro average, with wage competitiveness at 96.6 and rising pressure at 72.7. New entrants should factor higher labor costs into their financial projections for this market.

Industry Concentration
13.4
LQ: 0.82
Rank #40 of 298 metros
Wage Competitiveness
96.6
$39,040 avg wage
Growth Trend
62.4
Employment growth index
Rank #113 of 298 metros
Wage Pressure
72.7
YoY wage change index

5,101 Accommodation and Food Services Firms in San Jose-Sunnyvale-Santa Clara

5,101
Establishments
+1.0% YoY
84,620
Total Employment
+0.9% YoY
$39,040
Average Annual Wage
+3.9% YoY
0.82
Location Quotient
Below national avg

San Jose-Sunnyvale-Santa Clara vs California Statewide

How this metro's accommodation and food services market compares to California overall. The state ranks #47/51 for entry risk.

Measure San Jose-Sunnyvale-Santa Clara CA Statewide
Overall Score 53.3 Challenging 57.2 High
Score Type Metro Market Score Entry Risk Score
Rank #140 of 298 metros #47 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 San Jose-Sunnyvale-Santa Clara

Accommodation and Food Services in Other California Metros

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 San Jose-Sunnyvale-Santa Clara's accommodation and food services sector, the wage competitiveness component (96.6) 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

Data period: 2024. Last updated: April 2026.