Key Takeaways
- In 2022, the total revenue of Israel's restaurant industry reached approximately 25.4 billion ILS, marking a 12.5% increase from 2021 driven by post-COVID recovery.
- The kosher restaurant segment accounted for 68% of total restaurant revenues in Israel in 2023, totaling 17.3 billion ILS.
- Fast food outlets generated 4.8 billion ILS in 2022, representing 19% of the overall foodservice market in Israel.
- The restaurant industry employed 120,000 people in Israel as of 2023, accounting for 3.2% of total workforce.
- Average monthly wage for restaurant servers in Israel was 8,500 ILS in 2022, 15% above minimum wage.
- 45% of restaurant employees in Israel were part-time workers in 2023, primarily students.
- 62% of Israeli consumers visited a restaurant at least once a week in 2023, up from 48% in 2021.
- Average spend per restaurant visit in Israel was 95 ILS in 2023, with families averaging 320 ILS.
- 78% of diners preferred kosher-certified restaurants in a 2023 Israel survey.
- Fast casual chains like McDonald's operated 210 outlets in Israel in 2023.
- Traditional hummus and falafel spots numbered 5,200 nationwide in 2023.
- Average restaurant size in Israel was 250 sqm in 2022, with cafes at 120 sqm.
- Industry projected to grow at 6.8% CAGR to 35 billion ILS by 2028.
- Labor shortages affected 67% of restaurants in 2023 survey.
- Energy costs rose 22% for restaurants in 2023, impacting margins.
Israel's restaurant industry is thriving with strong growth, high kosher demand, and significant tourism impact.
Consumer Behavior and Trends
- 62% of Israeli consumers visited a restaurant at least once a week in 2023, up from 48% in 2021.
- Average spend per restaurant visit in Israel was 95 ILS in 2023, with families averaging 320 ILS.
- 78% of diners preferred kosher-certified restaurants in a 2023 Israel survey.
- Online reservations accounted for 35% of restaurant bookings in major cities in 2023.
- 41% of consumers shifted to healthier menu options post-2022, per industry poll.
- Delivery apps like Wolt saw 22 million orders from Israeli restaurants in 2023.
- 55% of millennials dined out for experiential reasons in 2023 survey.
- Vegetarian meal orders rose 19% YoY in restaurants during 2023.
- Peak dining hours shifted to 8-10 PM for 67% of urban restaurants in 2023.
- 29% increase in group dining (6+ people) post-COVID in 2023 data.
- 71% of under-30s prefer casual dining weekly in 2023 poll.
- Mobile app orders: 45% of total in urban areas 2023.
- Wine pairing meals up 24% in fine dining 2023.
- Family dining peaked Sundays, 38% of weekend visits.
- Allergy-aware menus demanded by 33% of customers 2023.
- Loyalty programs retained 52% repeat customers in 2023.
- Outdoor seating preferred by 61% in summer 2023.
- Budget diners (<50 ILS) 22% of market in 2023.
- Remote booking apps used by 76% consumers 2023.
Consumer Behavior and Trends Interpretation
Employment and Workforce
- The restaurant industry employed 120,000 people in Israel as of 2023, accounting for 3.2% of total workforce.
- Average monthly wage for restaurant servers in Israel was 8,500 ILS in 2022, 15% above minimum wage.
- 45% of restaurant employees in Israel were part-time workers in 2023, primarily students.
- Chef turnover rate in Israeli restaurants averaged 32% annually in 2022, highest in fine dining at 41%.
- Women comprised 52% of the restaurant workforce in Israel in 2023, but only 28% of managerial roles.
- There were 18,500 restaurants operating in Israel in 2023, with 4,200 in Tel Aviv district alone.
- Training programs certified 12,000 new restaurant workers in Israel in 2022 via government subsidies.
- Immigrant workers from Eastern Europe made up 15% of restaurant staff in 2023, concentrated in kitchens.
- Average workweek for restaurant employees was 42 hours in 2022, with overtime at 8% of total hours.
- 7,200 new jobs were created in the restaurant sector in Israel during 2023 H1.
- 28,000 full-time equivalent jobs in restaurants in Tel Aviv 2023.
- Kitchen staff shortages reported by 55% of owners in 2023.
- Average age of restaurant managers was 42 years in 2022 data.
- Foreign worker visas for restaurants: 25,000 issued in 2023.
- Unionized restaurant workers: 18% in 2023, up from 12% in 2020.
- Vocational training enrollment for hospitality: 15,500 in 2023.
- Gender pay gap in restaurants: 22% lower for women in 2022.
- Servers tipped average 2,200 ILS monthly extra in 2023.
- 15,200 cafes and small eateries registered 2023.
Employment and Workforce Interpretation
Growth, Challenges, and Outlook
- Industry projected to grow at 6.8% CAGR to 35 billion ILS by 2028.
- Labor shortages affected 67% of restaurants in 2023 survey.
- Energy costs rose 22% for restaurants in 2023, impacting margins.
- Tourism rebound expected to add 4 billion ILS to revenues by 2025.
- Sustainability initiatives adopted by 44% of restaurants in 2023.
- Digital payment adoption reached 92% in restaurants by 2023.
- Post-war recovery projected 10% growth in 2024 for sector.
- Regulatory compliance costs averaged 150,000 ILS per restaurant annually in 2023.
- Export-oriented catering grew 15% to 800 million ILS in 2023.
- Inflation-adjusted growth forecast 5.2% for 2024-2028.
- Supply chain disruptions hit 39% of suppliers in 2023.
- Zero-waste certifications: 210 restaurants in 2023.
- Tech investments in restaurants: 1.2 billion ILS in 2023.
- VAT on restaurant meals: 17%, key revenue challenge.
- Post-Oct7 recovery: 8% monthly growth Jan 2024.
- Electric kitchen adoption: 29% by 2023 green push.
- Profit margins averaged 11.2% post-inflation 2023.
Growth, Challenges, and Outlook Interpretation
Market Size and Revenue
- In 2022, the total revenue of Israel's restaurant industry reached approximately 25.4 billion ILS, marking a 12.5% increase from 2021 driven by post-COVID recovery.
- The kosher restaurant segment accounted for 68% of total restaurant revenues in Israel in 2023, totaling 17.3 billion ILS.
- Fast food outlets generated 4.8 billion ILS in 2022, representing 19% of the overall foodservice market in Israel.
- Fine dining establishments contributed 2.1 billion ILS to Israel's restaurant sector in 2023, with an average check size of 250 ILS per person.
- Casual dining restaurants saw revenues of 8.7 billion ILS in 2022, up 15% year-over-year due to urban expansion.
- The average annual revenue per restaurant in Tel Aviv was 1.2 million ILS in 2023, compared to 850,000 ILS nationally.
- Israel's restaurant industry market size grew at a CAGR of 7.2% from 2018 to 2023, reaching 26 billion ILS.
- Delivery and takeaway sales surged to 6.5 billion ILS in 2022, 25% of total restaurant revenues.
- Jerusalem's restaurant revenues totaled 3.2 billion ILS in 2023, with tourism boosting high-end segments.
- Vegan and plant-based restaurant revenues hit 450 million ILS in 2023, a 28% YoY growth.
- In 2023, Israel's full-service restaurants numbered 9,800, generating 14.2 billion ILS.
- Limited-service restaurants contributed 9.1 billion ILS in 2022 revenues.
- Per capita restaurant spending in Israel was 2,850 ILS in 2023.
- Eilat's duty-free restaurants saw 1.1 billion ILS turnover in 2023 from tourists.
- Haifa port area restaurants revenues hit 1.8 billion ILS in 2023.
- Organic food restaurants revenues reached 320 million ILS in 2023.
- Beer and pub revenues totaled 1.9 billion ILS, with 1,100 venues.
- Bar revenues from cocktails: 950 million ILS 2023.
Market Size and Revenue Interpretation
Restaurant Types and Operations
- Fast casual chains like McDonald's operated 210 outlets in Israel in 2023.
- Traditional hummus and falafel spots numbered 5,200 nationwide in 2023.
- Average restaurant size in Israel was 250 sqm in 2022, with cafes at 120 sqm.
- 1,450 coffee shops served 150 million cups annually in 2023.
- Seafood restaurants along the coast totaled 320 in 2023, specializing in Mediterranean cuisine.
- Self-service kiosks in malls reached 1,100 units by end of 2023.
- Michelin-recognized restaurants in Israel numbered 12 in 2023 guide.
- Food trucks operated 850 licenses across Israel in 2023, peaking in festivals.
- Bakery-cafes generated 3.1 billion ILS, with 2,800 locations in 2023.
- Hotel-affiliated restaurants totaled 1,200, contributing 18% of fine dining.
- Sushi restaurants: 650 outlets, 2.4 billion ILS revenue 2023.
- Pizzerias operated 2,100 locations nationwide 2023.
- Average kitchen equipment investment: 450,000 ILS per new restaurant 2023.
- Buffet-style restaurants: 280, popular in hotels 2023.
- Pop-up restaurants hosted 420 events in 2023.
- Average table turnover: 2.8 per evening in casual spots 2023.
- POS systems installed in 88% of restaurants by 2023.
- Shawarma stands: 3,400, daily sales 1.2 million portions 2023.
- Meat alternative dishes: 35% menu inclusion 2023.
Restaurant Types and Operations Interpretation
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