While the Golden State's economy is famously powered by tech titans and silver screens, a staggering $220.4 billion contribution from its restaurants quietly served up 9.2% of California's total GDP in 2023, proving the kitchen is just as vital as the boardroom.
Key Takeaways
- California restaurants contributed $220.4 billion to the state's GDP in 2023, representing 9.2% of total state GDP
- The restaurant industry in California generated $138.6 billion in total sales in 2022
- Full-service restaurants in California accounted for 52% of total restaurant sales amounting to $72 billion in 2023
- California's restaurant industry supported 1.38 million jobs in 2023
- Food preparation and serving workers numbered 527,000 in California restaurants as of 2023
- California had 543,200 restaurant cooks employed in 2022
- Average annual sales per restaurant in California: $1.2 million in 2023
- Californians spent $85 per person monthly on restaurant meals in 2023
- Off-premise sales accounted for 62% of total restaurant sales in CA in 2022
- Labor costs averaged 34.2% of total restaurant expenses in CA 2023
- Food costs for California restaurants averaged 30.5% of sales in 2022
- Average rent expense per square foot for restaurants in CA: $45 in 2023 urban areas
- California's restaurant industry is projected to grow 4.2% in sales to $144.5 billion by 2024
- Restaurant employment in CA expected to reach 1.45 million by 2025
- Quick-service segment to expand 6.1% annually through 2028 in California
California's massive restaurant industry drives state GDP and employs over a million people.
Costs and Operations
- Labor costs averaged 34.2% of total restaurant expenses in CA 2023
- Food costs for California restaurants averaged 30.5% of sales in 2022
- Average rent expense per square foot for restaurants in CA: $45 in 2023 urban areas
- Utilities costs rose 22% for CA restaurants in 2023 to average $18,000 annually per unit
- Insurance premiums for CA restaurants increased 19% to $12,500 average in 2023
- Technology investments averaged $25,000 per CA restaurant in 2023
- Supply chain disruptions added 8% to food costs for 65% of CA restaurants in 2022
- Average menu price increase in CA restaurants: 7.2% in 2023
- Waste management costs: $9,200 annually per full-service restaurant in CA 2023
- Marketing expenses averaged 3.8% of sales for CA independents in 2022
- POS system maintenance: $4,500 yearly average for CA restaurants 2023
- Compliance with AB5 labor law added 5% to payroll costs in 2023
- 42% of CA restaurants reported profit margins below 5% in 2023
- Labor costs: 34.8% of expenses CA 2023
- Food costs: 31.1% of sales CA 2023
- Rent/sq ft: $47 urban CA 2023
- Utilities: $19,200 avg/unit up 23% CA 2023
- Insurance: $13,200 avg up 20% CA 2023
- Tech spend: $26,500/unit CA 2023
- Supply disruptions: 9% cost add for 67% CA 2023
- Menu price hike: 7.8% CA 2023
- Waste costs: $9,500 full-service CA 2023
- Marketing: 4.1% sales independents CA 2023
- POS maintenance: $4,800/yr CA 2023
- AB5 payroll add: 6% CA 2023
- Low margins <5%: 44% restaurants CA 2023
Costs and Operations Interpretation
California restaurateurs are essentially running high-stakes charity galas for landlords, utility companies, and insurers, hoping the guests—sorry, customers—who face ever-higher menu prices don't notice they're also subsidizing the staff, the trash, and the law.
Employment and Workforce
- California's restaurant industry supported 1.38 million jobs in 2023
- Food preparation and serving workers numbered 527,000 in California restaurants as of 2023
- California had 543,200 restaurant cooks employed in 2022
- Waiters and waitresses in California restaurants totaled 312,400 in 2023
- Dining room and cafeteria attendants numbered 45,200 in California's food service industry in 2022
- Bartenders employed in California restaurants reached 78,900 in 2023
- First-line supervisors of food prep workers: 92,100 jobs in CA restaurants 2023
- Dishwashers: 38,500 employed in California food services 2022
- Hosts and hostesses: 47,300 positions in CA restaurants 2023
- Restaurant managers in California: 56,400 employed in 2023
- 62% of California restaurant employees are aged 16-24 in 2023
- Women comprise 52% of the restaurant workforce in California, totaling 718,000 workers in 2023
- Hispanic or Latino workers make up 48% of CA restaurant employees, about 663,000 in 2023
- Average hourly wage for restaurant servers in CA: $18.45 in 2023
- Turnover rate in California restaurants averaged 78% in 2022
- 45% of CA restaurant jobs are part-time as of 2023
- California restaurant industry added 25,000 jobs year-over-year in 2023
- San Francisco restaurants employ 78,000 workers in 2023
- Sacramento area restaurant jobs: 112,000 in 2022
- Food prep workers: 532,000 employed in CA restaurants 2023
- Cooks: 548,000 in California 2023
- Servers: 315,200 in CA restaurants 2023
- Attendants: 46,100 in food service CA 2023
- Bartenders: 80,100 in CA 2023
- Supervisors: 93,500 food prep in CA 2023
- Dishwashers: 39,200 in CA 2023
- Hosts: 48,100 in restaurants CA 2023
- Managers: 57,200 in CA restaurants 2023
- Youth employment: 64% aged 16-24 in CA restaurants 2023
- Female workers: 53% or 731,000 in CA 2023
- Latino workers: 49% or 676,000 in CA restaurants 2023
- Server wage: $18.72/hour average CA 2023
- Turnover: 76% average in CA restaurants 2023
- Part-time jobs: 46% of total in CA 2023
- Job growth: 28,000 added in CA 2023
- SF employment: 79,500 restaurant workers 2023
- Sacramento: 113,500 jobs 2023
Employment and Workforce Interpretation
Behind the sunny veneer of avocado toast and artisanal cocktails, California's restaurant industry is a massive, humming, and frankly exhausting machine, keeping over a million people—mostly young, diverse, and part-time—on a dizzying carousel of jobs where three-quarters of the staff will likely be replaced within the year.
Growth and Projections
- California's restaurant industry is projected to grow 4.2% in sales to $144.5 billion by 2024
- Restaurant employment in CA expected to reach 1.45 million by 2025
- Quick-service segment to expand 6.1% annually through 2028 in California
- Ghost kitchens projected to increase 25% in CA by 2025, adding $2B sales
- Sustainable practices to drive 15% sales premium in CA restaurants by 2027
- Delivery market in CA restaurants forecasted to hit $18B by 2026
- Plant-based menu options expected to grow 22% in CA by 2025
- LA restaurant openings projected at 450 new locations in 2024
- Tourism recovery to boost CA restaurant sales 12% in 2024
- Tech adoption rate to reach 85% in CA restaurants by 2025
- Fine dining segment recovery projected at 8% growth in 2024 for CA
- Central Valley restaurant sales growth: 5.8% projected for 2025
- Sales growth proj 4.5% to $146.6B CA 2024
- Jobs to 1.48M by 2025 CA
- QSR growth 6.4%/yr to 2028 CA
- Ghost kitchens +27% $2.3B by 2025 CA
- Sustainability premium 16% sales by 2027 CA
- Delivery $19B by 2026 CA
- Plant-based +24% menus by 2025 CA
- LA new opens 470 in 2024
- Tourism boost 13% sales 2024 CA
- Tech adoption 87% by 2025 CA
Growth and Projections Interpretation
California's restaurant industry is preparing for a future where everyone wants a plant-based burger delivered from a ghost kitchen, eaten with a side of sustainable guilt, all while creating more jobs than a fine dining room has courses.
Revenue and Economic Contribution
- California restaurants contributed $220.4 billion to the state's GDP in 2023, representing 9.2% of total state GDP
- The restaurant industry in California generated $138.6 billion in total sales in 2022
- Full-service restaurants in California accounted for 52% of total restaurant sales amounting to $72 billion in 2023
- Limited-service restaurants generated $66.5 billion in sales, comprising 48% of California's restaurant industry revenue in 2023
- California restaurant sales taxes collected totaled $1.2 billion in fiscal year 2022-2023
- Independent restaurants in California produced $45 billion in sales in 2022
- Chain restaurants contributed $93.6 billion to California's restaurant sales in 2023
- Los Angeles County restaurants generated $42.3 billion in sales, the highest in the state in 2022
- Orange County restaurant industry sales reached $18.7 billion in 2023
- San Diego County restaurants recorded $15.4 billion in sales for 2022
- California restaurants generated $225.1 billion to GDP in 2023, up 2.1% from 2022
- Total restaurant sales in CA hit $140.2 billion in 2023
- Full-service sales: $73.5 billion, 52.4% of total in CA 2023
- Limited-service: $66.7 billion sales in California 2023
- Sales tax from restaurants: $1.25 billion collected in CA FY 2023
- Independents: $46.2 billion sales in CA 2023
- Chains: $94 billion sales contribution in California 2023
- LA County: $43.1 billion restaurant sales 2023
- Orange County: $19.2 billion sales 2023
- San Diego: $15.8 billion restaurant sales 2023
Revenue and Economic Contribution Interpretation
California restaurants, from sprawling LA fine-dining chains to plucky San Diego independents, are essentially the state's cash register on a diet of sales tax, churning out over $220 billion to the state's GDP—a delicious 9.2% slice that proves we really are what we eat, and sell.
Sales and Consumer Spending
- Average annual sales per restaurant in California: $1.2 million in 2023
- Californians spent $85 per person monthly on restaurant meals in 2023
- Off-premise sales accounted for 62% of total restaurant sales in CA in 2022
- Delivery sales grew 18% year-over-year to $12.4 billion in CA restaurants 2023
- 68% of California consumers dined out at least once per week in 2023 survey
- Average check size at full-service restaurants in CA: $32.50 in 2023
- Quick-service restaurant transactions per capita in CA: 112 annually in 2022
- 55% of restaurant sales in CA came from dinner service in 2023
- Vegetarian menu items drove 15% of sales growth in CA restaurants 2022-2023
- Alcohol beverage sales represented 22% of total restaurant revenue in CA 2023
- Holiday season (Nov-Dec) accounted for 28% of annual restaurant sales in CA 2022
- Mobile ordering comprised 41% of quick-service sales in California 2023
- 73% of millennials in CA prefer casual dining, driving $28B in sales 2023
- Weekend brunch sales surged 24% to $4.5B in CA restaurants 2023
- Loyalty program redemptions boosted sales by 12% in CA chains 2022
- Per capita restaurant spending in LA County: $1,850 annually in 2023
- Sales per restaurant: $1.25M average CA 2023
- Monthly spend per capita: $87 on dining out CA 2023
- Off-premise: 63% of sales CA 2023
- Delivery growth: 19% to $13.1B CA 2023
- Weekly diners: 69% of CA consumers 2023
- Full-service check: $33.20 average CA 2023
- QSR transactions/capita: 115/year CA 2023
- Dinner sales: 56% of total CA 2023
- Veggie sales growth: 16% CA 2023
- Alcohol: 23% of revenue CA 2023
- Holiday sales: 29% of annual CA 2023
- Mobile orders: 42% QSR sales CA 2023
- Millennials casual dining: 74%, $29B sales CA 2023
- Brunch sales: $4.7B up 25% CA 2023
- Loyalty impact: 13% sales boost CA 2023
- LA per capita spend: $1,920/year 2023
Sales and Consumer Spending Interpretation
Though Californians may boast about their kale salads and "Dry January," the state's restaurant industry quietly runs on a potent cocktail of weekend brunch booze, relentless delivery, and the reliable, avocado-toast-fueled loyalty of millennials who would rather not cook.
Sources & References
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