Accommodation and Food Services in California

Accommodation and Food Services (NAICS 722) in California reports 1,529,684 workers across 88,778 establishments, with $44.2B of aggregate annual payroll flowing through Census CBP 2023 filings. That represents 12.1% of national employment for this industry — a concentration ratio that tells you whether California is a primary labor market for this NAICS code or a smaller satellite. A share above 5% signals a meaningful regional cluster; below 1% usually means the state is not a structural fit for this industry at scale.

Wage benchmarking is where state-level data earns its keep. The average annual compensation for Accommodation and Food Services employees in California is $28,902/yr, versus a national average of $24,695/yr. California pays above the national average for this industry, which usually reflects higher skill concentration, union density, or regional cost of living.

Profitability data is only available at the national level because the IRS Statistics of Income program does not publish state-level margin breakdowns. The national net profit margin for Accommodation and Food Services is 5.3%, and while margins do vary by state, the direction of variance usually follows labor cost and establishment size — both shown above. For a complete picture, pair this state-industry view with the Accommodation and Food Services national page (entity structure, SBA lending, sub-industries) and the California overview (top employers, payroll dispersion across industries).