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 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 Market⚡Rising 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

Within California

#3 of 25

accommodation and food services metros in state

California state rank

#47 of 51

for accommodation and food services entry risk

vs State Median

-15.2

better than median (68.6)

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

Healthcare and Social Assistance 42.4 Other Services 46.6 Finance and Insurance 54.3 Retail Trade 63.5 Real Estate and Rental and Leasing 65.0 Construction 68.4 Administrative and Support Services 70.4 Information 71.4

Accommodation and Food Services in Other California Metros

Fresno 39.2 #46/298 Hanford-Corcoran 50.6 #120/298 Chico 53.8 #147/298 El Centro 54.7 #155/298 Visalia 56.9 #163/298 San Luis Obispo-Paso Robles 60.6 #197/298 Redding 62.2 #208/298 Bakersfield-Delano 64.2 #220/298 Stockton-Lodi 64.5 #221/298 Merced 64.8 #225/298

+ 14 more metros. View all in California →

Accommodation and Food Services Metros With Similar Conditions

Metros within 5 points of San Jose-Sunnyvale-Santa Clara's 53.3 score. Useful when comparing markets with comparable entry profiles.

Hattiesburg, MS 53.3 #139/298 Seattle-Tacoma-Bellevue, WA 53.4 #141/298 Winston-Salem, NC 53.4 #142/298 Lexington Park, MD 53.5 #143/298 Amherst Town-Northampton, MA 53.6 #144/298 Omaha, NE 53.6 #145/298 Eugene-Springfield, OR 53.0 #138/298 Morgantown, WV 52.9 #137/298 Sumter, SC 52.9 #136/298 Great Falls, MT 53.7 #146/298

Accommodation and Food Services in States Bordering California

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

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

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 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

Quarterly Census of Employment and Wages (QCEW), Bureau of Labor Statistics. MSA-level establishment counts, employment, wages, and location quotients for the San Jose-Sunnyvale-Santa Clara, CA MSA area.

Data period: 2024. Last updated: April 2026.

Metro Market Assessment