California restaurants reported average profit margins below 5% in 2023. Labor and rent consumed over a third of total expenses in the same period. These statistics detail the operational costs and market forces defining the state's food service sector.
Key Takeaways
- 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 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
- 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 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
- 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
In 2023, rising costs and slim margins squeezed California restaurants while sales growth depended on delivery and tech.
Related reading
01 · Category
Costs and Operations26 stats
01
Labor costs averaged 34.2% of total restaurant expenses in CA 2023
02
Food costs for California restaurants averaged 30.5% of sales in 2022
03
Average rent expense per square foot for restaurants in CA: $45in 2023 urban areas
04
Utilities costs rose 22% for CA restaurants in 2023 to average $18,000 annually per unit
05
Insurance premiums for CA restaurants increased 19% to $12,500 average in 2023
06
Technology investments averaged $25,000per CA restaurant in 2023
07
Supply chain disruptions added 8% to food costs for 65% of CA restaurants in 2022
08
Average menu price increase in CA restaurants: 7.2% in 2023
09
Waste management costs: $9,200annually per full-service restaurant in CA 2023
10
Marketing expenses averaged 3.8% of sales for CA independents in 2022
11
POS system maintenance: $4,500yearly average for CA restaurants 2023
12
Compliance with AB5 labor law added 5% to payroll costs in 2023
13
42% of CA restaurants reported profit margins below 5% in 2023
14
Labor costs: 34.8% of expenses CA 2023
15
Food costs: 31.1% of sales CA 2023
16
Rent/sq ft: $47urban CA 2023
17
Utilities: $19,200avg/unit up 23% CA 2023
18
Insurance: $13,200avg up 20% CA 2023
19
Tech spend: $26,500/unit CA 2023
20
Supply disruptions: 9% cost add for 67% CA 2023
21
Menu price hike: 7.8% CA 2023
22
Waste costs: $9,500full-service CA 2023
23
Marketing: 4.1% sales independents CA 2023
24
POS maintenance: $4,800/yr CA 2023
25
AB5 payroll add: 6% CA 2023
26
Low margins <5%: 44% restaurants CA 2023
Interpretation
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.
02 · Category
Employment and Workforce30 stats
01
California's restaurant industry supported 1.38 million jobs in 2023
02
Food preparation and serving workers numbered 527,000 in California restaurants as of 2023
03
California had 543,200 restaurant cooks employed in 2022
04
Waiters and waitresses in California restaurants totaled 312,400 in 2023
05
Dining room and cafeteria attendants numbered 45,200 in California's food service industry in 2022
06
Bartenders employed in California restaurants reached 78,900 in 2023
07
First-line supervisors of food prep workers: 92,100 jobs in CA restaurants 2023
08
Dishwashers: 38,500 employed in California food services 2022
09
Hosts and hostesses: 47,300 positions in CA restaurants 2023
10
Restaurant managers in California: 56,400 employed in 2023
11
62% of California restaurant employees are aged 16-24 in 2023
12
Women comprise 52% of the restaurant workforce in California, totaling 718,000 workers in 2023
13
Hispanic or Latino workers make up 48% of CA restaurant employees, about 663,000 in 2023
14
Average hourly wage for restaurant servers in CA: $18.45in 2023
15
Turnover rate in California restaurants averaged 78% in 2022
16
45% of CA restaurant jobs are part-time as of 2023
17
California restaurant industry added 25,000 jobs year-over-year in 2023
18
San Francisco restaurants employ 78,000 workers in 2023
19
Sacramento area restaurant jobs: 112,000 in 2022
20
Food prep workers: 532,000 employed in CA restaurants 2023
21
Cooks: 548,000 in California 2023
22
Servers: 315,200 in CA restaurants 2023
23
Attendants: 46,100 in food service CA 2023
24
Bartenders: 80,100 in CA 2023
25
Supervisors: 93,500 food prep in CA 2023
26
Dishwashers: 39,200 in CA 2023
27
Hosts: 48,100 in restaurants CA 2023
28
Managers: 57,200 in CA restaurants 2023
29
Youth employment: 64% aged 16-24 in CA restaurants 2023
30
Female workers: 53% or 731,000 in CA 2023
Interpretation
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.
03 · Category
Growth and Projections22 stats
01
California's restaurant industry is projected to grow 4.2% in sales to $144.5 billion by 2024
02
Restaurant employment in CA expected to reach 1.45 million by 2025
03
Quick-service segment to expand 6.1% annually through 2028 in California
04
Ghost kitchens projected to increase 25% in CA by 2025, adding $2B sales
05
Sustainable practices to drive 15% sales premium in CA restaurants by 2027
06
Delivery market in CA restaurants forecasted to hit $18B by 2026
07
Plant-based menu options expected to grow 22% in CA by 2025
08
LA restaurant openings projected at 450 new locations in 2024
09
Tourism recovery to boost CA restaurant sales 12% in 2024
10
Tech adoption rate to reach 85% in CA restaurants by 2025
11
Fine dining segment recovery projected at 8% growth in 2024 for CA
12
Central Valley restaurant sales growth: 5.8% projected for 2025
13
Sales growth proj 4.5% to $146.6B CA 2024
14
Jobs to 1.48M by 2025 CA
15
QSR growth 6.4%/yr to 2028 CA
16
Ghost kitchens +27% $2.3B by 2025 CA
17
Sustainability premium 16% sales by 2027 CA
18
Delivery $19B by 2026 CA
19
Plant-based +24% menus by 2025 CA
20
LA new opens 470 in 2024
21
Tourism boost 13% sales 2024 CA
22
Tech adoption 87% by 2025 CA
Interpretation
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.
More related reading
04 · Category
Revenue and Economic Contribution20 stats
01
California restaurants contributed $220.4 billion to the state's GDP in 2023, representing 9.2% of total state GDP
02
The restaurant industry in California generated $138.6 billion in total sales in 2022
03
Full-service restaurants in California accounted for 52% of total restaurant sales amounting to $72 billion in 2023
04
Limited-service restaurants generated $66.5 billion in sales, comprising 48% of California's restaurant industry revenue in 2023
05
California restaurant sales taxes collected totaled $1.2 billion in fiscal year 2022-2023
06
Independent restaurants in California produced $45 billion in sales in 2022
07
Chain restaurants contributed $93.6 billion to California's restaurant sales in 2023
08
Los Angeles County restaurants generated $42.3 billion in sales, the highest in the state in 2022
09
Orange County restaurant industry sales reached $18.7 billion in 2023
10
San Diego County restaurants recorded $15.4 billion in sales for 2022
11
California restaurants generated $225.1 billion to GDP in 2023, up 2.1% from 2022
12
Total restaurant sales in CA hit $140.2 billion in 2023
13
Full-service sales: $73.5 billion, 52.4% of total in CA 2023
14
Limited-service: $66.7 billion sales in California 2023
15
Sales tax from restaurants: $1.25 billion collected in CA FY 2023
16
Independents: $46.2 billion sales in CA 2023
17
Chains: $94 billion sales contribution in California 2023
18
LA County: $43.1 billion restaurant sales 2023
19
Orange County: $19.2 billion sales 2023
20
San Diego: $15.8 billion restaurant sales 2023
Interpretation
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.
05 · Category
Sales and Consumer Spending30 stats
01
Average annual sales per restaurant in California: $1.2 million in 2023
02
Californians spent $85per person monthly on restaurant meals in 2023
03
Off-premise sales accounted for 62% of total restaurant sales in CA in 2022
04
Delivery sales grew 18% year-over-year to $12.4 billion in CA restaurants 2023
05
68% of California consumers dined out at least once per week in 2023 survey
06
Average check size at full-service restaurants in CA: $32.50in 2023
07
Quick-service restaurant transactions per capita in CA: 112 annually in 2022
08
55% of restaurant sales in CA came from dinner service in 2023
09
Vegetarian menu items drove 15% of sales growth in CA restaurants 2022-2023
10
Alcohol beverage sales represented 22% of total restaurant revenue in CA 2023
11
Holiday season (Nov-Dec) accounted for 28% of annual restaurant sales in CA 2022
12
Mobile ordering comprised 41% of quick-service sales in California 2023
13
73% of millennials in CA prefer casual dining, driving $28B in sales 2023
14
Weekend brunch sales surged 24% to $4.5B in CA restaurants 2023
15
Loyalty program redemptions boosted sales by 12% in CA chains 2022
16
Per capita restaurant spending in LA County: $1,850annually in 2023
17
Sales per restaurant: $1.25M average CA 2023
18
Monthly spend per capita: $87on dining out CA 2023
19
Off-premise: 63% of sales CA 2023
20
Delivery growth: 19% to $13.1B CA 2023
21
Weekly diners: 69% of CA consumers 2023
22
Full-service check: $33.20average CA 2023
23
QSR transactions/capita: 115/year CA 2023
24
Dinner sales: 56% of total CA 2023
25
Veggie sales growth: 16% CA 2023
26
Alcohol: 23% of revenue CA 2023
27
Holiday sales: 29% of annual CA 2023
28
Mobile orders: 42% QSR sales CA 2023
29
Millennials casual dining: 74%, $29B sales CA 2023
30
Brunch sales: $4.7B up 25% CA 2023
Interpretation
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.
Reference
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
APA
Alexander Schmidt. (2026, February 13). California Restaurant Industry Statistics. Gitnux. https://gitnux.org/california-restaurant-industry-statistics
MLA
Alexander Schmidt. "California Restaurant Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/california-restaurant-industry-statistics.
Chicago
Alexander Schmidt. 2026. "California Restaurant Industry Statistics." Gitnux. https://gitnux.org/california-restaurant-industry-statistics.
Sources & references
28 datasets cited across this report · attribution is report-level