The news: Retail and hospitality companies are more worried than other employers that the Trump administration’s immigration crackdown could hurt their businesses, per a recent survey.

• Among retail, hospitality, and manufacturing workplaces, 83% expressed concern about US immigration policies, versus 75% for all employers, per the May 2025 Littler Annual Employer Survey Report.
• Overall, 70% of nearly 350 employers said US immigration enforcement would have a significant or moderate effect on their workplaces over the next 12 months. But among retail and hospitality employers, that figure was much higher, at 89%.
• 58% of employers had concerns that immigration regulations could cause staffing challenges.

Worker losses occurring: A February poll from Clarify Capital found 1 in 5 business owners had lost workers due to deportations, immigration raids, or visa denials in the past year. In that study of 1,000 small business owners, 56% in hospitality and food service said immigration policies were harming their industry.

Why it matters: The immigration crackdown could bring more complications for the hospitality industry, which was already grappling with labor shortages.

Sixty-five percent of hotels reported staff shortages at the end of 2024, with the positions most in need being in housekeeping (38%) and front desk roles (26%), per a survey by the American Hotel and Lodging Association and Hireology. Meanwhile, a majority of independent restaurant owners cited hiring and retaining staff among their top concerns in a February report from the James Beard Foundation and Deloitte.

Chilled sales: The immigration crackdown is already hurting sales in some retail sectors. Several brands have noted a pullback in spending amid concerns about immigration enforcement, particularly among Hispanic consumers.

• Constellation Brands said Hispanic shoppers, who account for more than 50% of Modelo beer drinkers, have cut back on social events and purchases. “There’s a fear of the ICE raids” that is causing consumers to change their behavior, Jim Sabia, president of the company’s beer division, said during the Goldman Sachs Global Staples Forum this week.
• Colgate-Palmolive and Coca-Cola also cited declining spending among Hispanic consumers.

Our take: With the Trump administration reportedly planning to escalate its immigration enforcement by deploying more federal agents to make arrests, pressure on the Hispanic community and immigrant workers will likely increase. For the hospitality and retail employers facing staff shortages and falling consumer sentiment, this crackdown could pose operational risks.

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