NAICS 72

Accommodation and Food Services in Santa Cruz-Watsonville, CA

Metro Market Score 83.7 (Difficult), ranked #293 of 298 metros. 687 establishments, 11,473 jobs.

Metro Market Assessment

Metro Market Score 83.7
Favorable 0-35
Moderate 35-48
Challenging 48-60
Difficult 60+
Difficult

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

💰High-Cost MarketRising Wages

Wage costs in Santa Cruz-Watsonville's accommodation and food services sector are well above the metro average, with wage competitiveness at 89.9 and rising pressure at 77.8. New entrants should factor higher labor costs into their financial projections for this market.

Industry Concentration
77.8
LQ: 1.21
Rank #232 of 298 metros
Wage Competitiveness
89.9
$32,457 avg wage
Growth Trend
12.8
Employment growth index
Rank #261 of 298 metros
Wage Pressure
77.8
YoY wage change index

687 Accommodation and Food Services Firms in Santa Cruz-Watsonville

687
Establishments
-0.7% YoY
11,473
Total Employment
-2.7% YoY
$32,457
Average Annual Wage
+5.4% YoY
1.21
Location Quotient
Above national avg

Santa Cruz-Watsonville 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 Santa Cruz-Watsonville CA Statewide
Overall Score 83.7 Difficult 57.2 High
Score Type Metro Market Score Entry Risk Score
Rank #293 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 Santa Cruz-Watsonville

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 Santa Cruz-Watsonville's accommodation and food services sector, the employment growth component (87.3) 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.