Three-quarters of restaurants that participated in a Deloitte survey for the Malta Hotels and Restaurants Association reported increased revenue in 2022 when compared to 2021.
However, 54% have still not yet returned to pre-covid pandemic revenue levels.
Some 70 restaurants participated in the survey, 77% of which reported higher operational costs when comparing 2022 payroll costs to those of 2019.
Despite an increase in the overall operational costs, 67% of respondents are expecting a more positive 2023, with the least optimistic establishments being those based in Gozo and the southern region of Malta.
Only 17% of Gozitan respondents are anticipating a positive year.
Addressing the launch of the results, MHRA president Tony Zahra said the industry and the government needed to "work hand-in-hand" in the face of a rise in costs and recruitment issues.