Waiter Kevin Sullivan carries orders to lunchtime customers at the Greenwood Inn, in Warwick. Statewide meals and beverage tax numbers are down sharply for the month of May, although the Greenwood Inn says it is bucking the trend.

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The Providence Journal / Bill Murphy

Food-service industry sales in Rhode Island eroded sharply in May, according to figures from the state Division of Taxation.

In 37 cities and towns, excluding Jamestown and Westerly, collection of the state’s meals and beverage tax dropped 9 percent in May compared with the same month a year ago. The numbers for May are the latest distributed by the tax division. No figures were reported for Jamestown or Westerly, and tax officials could not be reached to explain the omission.

Meanwhile, restaurateurs are keeping a wary eye on their businesses.

“They’re struggling, I think, just like any other business,” said Heather Singleton, vice president of the Rhode Island Hospitality and Tourism Association, a trade group. “But they’re also hopeful.”

The state’s data don’t offer much reason for optimism. They show across-the-board drops in the 14 largest food-service economies, excluding Westerly. The big four, Providence, Warwick, Newport and Cranston, were down 10.5 percent, 2.9 percent, 8.0 percent and 13.7 percent, respectively.

Even Lincoln, which had been buoyed in recent months by the revamped Twin River gambling complex, saw a decline — 20.5 percent. A Twin River spokeswoman attributed the drop to a weaker general economy and the fall-off from last May, when Twin River was enjoying a surge in popularity as the renovated facility opened.

Consumers pay two taxes on food and drinks sold for immediate consumption. The state collects its 7-percent sales tax plus a 1-percent meals and beverage tax, which is returned to the community in which the sale was made. The meals and beverage tax applies to food and drink sold in various establishments ranging from restaurants, delis and coffee shops to grocery stores, sports arenas and vending machines.

In Providence alone, which makes up nearly a quarter of the state’s restaurant business each May, the city’s 1-percent share dropped just over $42,500, from $404,710 last May to $362,205 this May. That indicates that customers in restaurants and other establishments in Providence spent $4.25 million less this May, excluding taxes and tips.

Singleton said two factors drove the restaurant market in May: the weather and the softening economy.

“When you hear a forecast that doesn’t sound very good, people tend to hunker down and stay in,” she said. “I believe that May had quite a bit of a strange forecast.”

But the economy was a big factor.

“Discretionary income — everybody is certainly tightening up their wallets and their purse strings,” she said.

Singleton said the economy may be forcing diners to reconsider what’s on the menu, but it hasn’t changed their dining-out habits much yet.

“People are still going out to eat, so you’re still seeing restaurants that are full,” she said. “You’re still seeing families going out to eat. They just may be spending a little bit less than they would normally. So, instead of ordering dessert, maybe they’re holding off on that. Maybe they’re ordering a glass of wine instead of a bottle of wine.”

Many restaurants also are offering specials, she said. That keeps tables full, but doesn’t bring in as much money.

And restaurants are looking at the other side of the ledger, looking to cut expenses, she said.

As an example, Singleton said membership in the association has been growing. “People are looking to organizations like ours and chambers of commerce and whatnot to find ways to save some money.”

The association uses the combined buying power of its 600 members to offer a natural-gas buying program and discounts on credit-card processing.

And restaurateurs continue to be hopeful — and watch the skies.

“We had a great Fourth of July weekend,” said Singleton. “The weather was fantastic.”

pparker@projo.com