From soaring to a staggering $1.1 trillion in sales last year to navigating fierce labor shortages and a consumer pullback driven by inflation, the U.S. restaurant industry is a dynamic, high-stakes arena where seismic shifts are reshaping every plate, paycheck, and profit margin.
Key Takeaways
- In 2023, the U.S. restaurant industry generated total sales of $1.1 trillion, marking a 5.4% increase from 2022
- Global foodservice market size reached $3.5 trillion in 2023, projected to grow at a CAGR of 7.2% from 2024 to 2030
- Quick-service restaurants (QSR) accounted for 37% of U.S. restaurant sales in 2023, totaling approximately $407 billion
- In 2023, 70% of U.S. adults dined out at least once a week, with millennials leading at 78%
- 55% of consumers prefer quick-service restaurants for lunch in 2023, compared to 25% for full-service
- Delivery orders accounted for 15% of total restaurant sales in the U.S. in 2023, up from 11% in 2022
- The U.S. restaurant industry employed 15.9 million people in 2023, representing 9.6% of private sector jobs
- Average hourly wage for restaurant workers rose to $17.50 in 2023, up 6.2% from 2022
- Turnover rate in full-service restaurants was 72% in 2023, compared to 58% in QSR
- Food costs as a percentage of sales averaged 30.5% for U.S. restaurants in 2023
- 65% of restaurants adopted POS systems with inventory management in 2023, up from 52% in 2022
- Average table turnover rate in casual dining was 2.8 turns per night in 2023
- 52% of restaurants faced closure risk due to rising costs in 2023 survey
- Inflation eroded 8.5% of profit margins for restaurants in 2023
- 39% of restaurants closed permanently post-2023 due to pandemic recovery issues
The foodservice industry is growing globally despite facing significant inflation and labor challenges.
Challenges and Future Outlook
- 52% of restaurants faced closure risk due to rising costs in 2023 survey
- Inflation eroded 8.5% of profit margins for restaurants in 2023
- 39% of restaurants closed permanently post-2023 due to pandemic recovery issues
- Food cost inflation peaked at 11.2% in early 2023 before stabilizing at 4.1%
- Wage pressure led to 6.8% menu price hikes across industry in 2023
- 67% of operators expect flat or declining sales in 2024 due to consumer pullback
- Cyberattack incidents rose 22% in restaurants, costing avg $150k per event in 2023
- Regulatory compliance costs increased 9% to 2.8% of revenue in 2023
- Climate change impacted supply chains for 45% of produce-dependent restaurants in 2023
- 31% profit margin contraction for independents vs 22% for chains in 2023
- Third-party delivery fees averaged 28% of delivery sales, squeezing margins in 2023
- 54% of restaurants delayed expansions due to economic uncertainty in 2023
- Energy price volatility added $2,500 avg monthly cost to mid-sized restaurants in 2023
- Insurance premiums rose 15% YoY for restaurants in 2023 due to risk factors
- 48% cited labor shortages as barrier to reopening hours fully in 2023
- 61% plan AI chatbots for 2024
- Supply chain costs up 7.3% YoY 2023
- 27% of small restaurants bankrupt risk 2023
- EV transition challenges for delivery fleets 34% adoption barrier 2023
- Health regulation changes impacted 53% menus 2023
- Consumer debt rise reduced dining 9% low-income 2023
Challenges and Future Outlook Interpretation
Navigating a landscape where inflation picks your pocket, cyberattacks hold your data hostage, supply chains play hide-and-seek, and customers tighten their belts, the restaurant industry's 2023 was a masterclass in survival against a chorus line of escalating threats, each demanding a pricey ticket paid from dwindling profits.
Consumer Behavior and Trends
- In 2023, 70% of U.S. adults dined out at least once a week, with millennials leading at 78%
- 55% of consumers prefer quick-service restaurants for lunch in 2023, compared to 25% for full-service
- Delivery orders accounted for 15% of total restaurant sales in the U.S. in 2023, up from 11% in 2022
- 62% of Gen Z consumers visited fast-casual restaurants weekly in 2023, highest among generations
- Plant-based menu items grew by 18% in U.S. restaurants from 2022 to 2023
- 47% of U.S. consumers cited price as the top factor in restaurant choice in 2023, up from 32% in 2021
- Takeout orders represented 21% of sales for full-service restaurants in 2023
- 36% of consumers avoided dining out due to inflation concerns in 2023
- Alcohol beverage sales at restaurants grew 4% YoY to $42 billion in U.S. QSRs in 2023
- 68% of U.S. diners used mobile apps for ordering in 2023, up 12% from 2022
- Health-conscious consumers increased orders of low-calorie items by 22% in 2023
- Weekend dining out frequency was 2.1 times per month for average U.S. consumer in 2023
- 51% of consumers prefer restaurants with sustainable practices in 2023
- Family dining occasions dropped 8% in full-service restaurants in 2023 vs 2019
- Online reviews influence 67% of restaurant choices among U.S. consumers in 2023
- 73% of consumers prioritize convenience in restaurant choice post-2023
- Sustainable packaging influenced 49% of takeout decisions in 2023
- Breakfast dining out up 14% among remote workers in 2023
- 59% of boomers prefer dine-in over delivery in 2023
- Spicy food orders surged 25% in QSRs in 2023
- Avg restaurant visits per month: 5.2 for households earning >$100k in 2023
- 44% reduced frequency due to higher prices in 2023
- Vegan menu adoption by 82% of chains in 2023
- Late-night dining grew 11% in urban areas 2023
- 71% use social media for restaurant discovery in 2023
Consumer Behavior and Trends Interpretation
Despite our collective grumbling about prices and inflation, America's love affair with eating out is far from over; it's just evolved into a faster, spicier, app-driven, and occasionally plant-based relationship where convenience is king, our phones do the ordering, and we'll gladly pay extra for a side of sustainable packaging and a margarita.
Employment and Labor
- The U.S. restaurant industry employed 15.9 million people in 2023, representing 9.6% of private sector jobs
- Average hourly wage for restaurant workers rose to $17.50 in 2023, up 6.2% from 2022
- Turnover rate in full-service restaurants was 72% in 2023, compared to 58% in QSR
- 1.2 million restaurant jobs were added in the U.S. from 2022 to 2023
- Women comprised 52% of the restaurant workforce in 2023, but only 25% of management roles
- Labor costs accounted for 32.5% of total restaurant expenses in 2023, up from 30% in 2022
- 45% of restaurants reported staffing shortages as their top challenge in 2023
- Front-of-house positions had a 65% turnover rate in 2023, highest among roles
- Immigrants made up 22% of the U.S. restaurant workforce in 2023
- Average tenure for restaurant servers was 1.8 years in 2023
- Benefits offered to hourly workers increased to 42% of restaurants in 2023 from 35% in 2022
- Back-of-house labor shortages affected 78% of independent restaurants in 2023
- Hourly earnings for cooks rose 7.1% to $18.20 in 2023
- 28% of restaurant operators planned to hire more in 2024, down from 35% in 2023
- Youth employment (16-24) in restaurants was 4.5 million in 2023, 28% of total workforce
- Unionization rate in restaurants remained at 1.2% in 2023
- Training hours per new hire averaged 28 hours in 2023 for full-service chains
- 35 million restaurant jobs supported indirectly in U.S. 2023
- Bartender median wage $14.25/hr in 2023
- 82% of restaurants raised wages to attract talent in 2023
- Dishwasher shortage hit 41% of operations in 2023
- Diversity in management up 5% to 38% in 2023
- Overtime hours averaged 8 per week for 29% of staff in 2023
- Remote training tools used by 56% in 2023
- Servers earned avg $25k + tips totaling $37k annual in 2023
- 64% turnover in fine dining vs 50% QSR average 2023
- Apprenticeship programs in 12% of large chains 2023
Employment and Labor Interpretation
While the industry celebrates adding 1.2 million jobs and raising wages to attract talent, it's simultaneously hemorrhaging employees at a 72% turnover rate, suggesting that many are voting with their feet because higher pay hasn't yet solved the deeper problems of burnout, opportunity, and work-life balance.
Market Size and Revenue
- In 2023, the U.S. restaurant industry generated total sales of $1.1 trillion, marking a 5.4% increase from 2022
- Global foodservice market size reached $3.5 trillion in 2023, projected to grow at a CAGR of 7.2% from 2024 to 2030
- Quick-service restaurants (QSR) accounted for 37% of U.S. restaurant sales in 2023, totaling approximately $407 billion
- Full-service restaurants in the U.S. saw sales of $363 billion in 2023, representing 33% of total industry sales
- The U.S. restaurant industry sales per capita reached $3,246 in 2023, up from $3,094 in 2022
- In 2023, limited-service eating places generated $474.5 billion in revenue in the U.S., a 6.8% YoY growth
- Bar and tavern sales in the U.S. totaled $47 billion in 2023, comprising 4.3% of total restaurant sales
- The global fast-casual segment of foodservice is expected to reach $147.5 billion by 2027, growing at 8.1% CAGR
- U.S. restaurant sales from off-premise channels hit $370 billion in 2023, 34% of total sales
- Independent restaurants contributed 72% of U.S. restaurant locations but only 45% of sales in 2023
- Chain restaurants captured 55% of U.S. industry sales in 2023 despite representing 28% of locations
- U.S. foodservice sales through grocery channels reached $250 billion in 2023, up 12% YoY
- The U.S. casual dining segment sales were $285 billion in 2023, down 2% from pre-pandemic levels
- Global cloud kitchen market size was $51.96 billion in 2022, projected to $71.97 billion by 2027 at 6.7% CAGR
- U.S. fine dining sales totaled $38 billion in 2023, representing 3.5% of total industry sales
- U.S. restaurant sales projected to grow 4% to $1.14 trillion in 2024
- Fast casual sales reached $32.5 billion in 2023, up 5.8% YoY
- Drinker sales in restaurants totaled $125 billion globally in 2023
- U.S. school foodservice market was $18.4 billion in 2023
- Hotel restaurant revenue grew 9.2% to $45 billion in U.S. 2023
Market Size and Revenue Interpretation
While America’s $1.1 trillion appetite for eating out is booming, its restaurant landscape is a chaotic buffet where chains efficiently swallow most of the profits, independents fight for crumbs, and everyone is racing to serve you both a quick burger and a fine dining experience, often from the same ghost kitchen.
Operational and Technology
- Food costs as a percentage of sales averaged 30.5% for U.S. restaurants in 2023
- 65% of restaurants adopted POS systems with inventory management in 2023, up from 52% in 2022
- Average table turnover rate in casual dining was 2.8 turns per night in 2023
- Online ordering platforms processed 28% of total sales for QSRs in 2023
- Kitchen display systems (KDS) were used by 72% of fast-casual restaurants in 2023
- Average check size grew 4.2% to $15.80 in QSRs in 2023
- 41% of restaurants implemented AI for demand forecasting in 2023
- Contactless payment usage hit 89% of transactions in restaurants in 2023
- Menu engineering optimized profits by 15% for 55% of restaurants using it in 2023
- Ghost kitchen utilization grew to 18% of urban restaurants' revenue in 2023
- Energy costs rose 11% YoY to 4.2% of expenses in 2023
- Loyalty program participation drove 22% repeat visits in 2023 for participating chains
- Self-service kiosks boosted order speed by 30% in 68% of QSRs in 2023
- Supply chain disruptions affected 62% of restaurants, delaying deliveries by avg 2.3 days in 2023
- 76% of fine dining used reservation software, reducing no-shows by 25% in 2023
- Labor as % of sales hit 34.8% in independent restaurants in 2023
- Avg food waste per restaurant: 22,000 lbs annually in 2023
- CRM software adoption at 48% in 2023
- Peak hour sales 35% of daily revenue avg 2023
- IoT sensors for temp monitoring in 29% kitchens 2023
- Avg delivery time 32 min via apps in 2023
- Menu item count avg 45 in casual dining 2023, down 10% from 2019
- 77% use digital menus post-pandemic 2023
- Utility costs 5.1% of sales in 2023
- Predictive analytics cut spoilage 18% for users 2023
- Drive-thru avg wait 4.2 min in 2023
Operational and Technology Interpretation
Amidst soaring costs, a tech revolution, and the ever-present stopwatch of efficiency, the 2023 restaurant industry revealed a singular truth: to stay alive, you must master the delicate art of squeezing more profit from every table turn, click, and degree of kitchen temperature.
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