Amidst the hum of activity in bustling stores and vibrant dining rooms, the retail and restaurant industries are not just economic indicators but twin engines of American life, together generating over $8 trillion in sales and employing nearly one in every ten workers.
Key Takeaways
- In 2023, U.S. retail sales totaled $7.04 trillion, representing a 3.6% increase from 2022 and accounting for approximately 25% of the U.S. GDP
- The restaurant industry contributed $1.1 trillion to the U.S. GDP in 2023, with total sales reaching $1.03 trillion, up 8.5% from 2022
- E-commerce sales in the U.S. retail sector hit $1.1 trillion in 2023, comprising 15.6% of total retail sales
- U.S. retail employment stood at 15.7 million jobs in 2023, accounting for 10% of private sector employment
- Restaurant industry employed 15.9 million people in 2023, representing one in 10 U.S. jobs
- Retail trade sector added 214,000 jobs in 2023, with average hourly wage at $21.50
- U.S. consumers dined out 5.6 times per week on average in 2023, up from 4.9 in 2022
- 68% of U.S. consumers prefer quick-service over full-service restaurants in 2023
- Online ordering accounted for 37% of restaurant sales in 2023, driven by millennials
- Labor costs accounted for 32.5% of restaurant operating expenses in 2023, up from 30.1% in 2022
- U.S. retail rent expenses averaged $45 per square foot in prime locations in 2023
- Food costs for restaurants rose to 30.8% of sales in 2023 due to supply chain issues
- U.S. retail industry expected to grow 2.5-3.5% in sales to $7.3 trillion in 2024
- Restaurant sales projected to reach $1.5 trillion by 2030, CAGR 4.2% from 2023
- Global retail e-commerce sales to hit $8.1 trillion by 2026, 22% of total retail
U.S. retail and restaurants grew significantly in 2023, fueled by strong sales and employment.
Costs and Expenses
- Labor costs accounted for 32.5% of restaurant operating expenses in 2023, up from 30.1% in 2022
- U.S. retail rent expenses averaged $45 per square foot in prime locations in 2023
- Food costs for restaurants rose to 30.8% of sales in 2023 due to supply chain issues
- Retail utilities and energy costs increased 12% YoY to $2.5 billion industry-wide in 2023
- Restaurant beverage costs averaged 25% of sales for alcohol in 2023
- Credit card processing fees for retail hit 2.4% of sales volume in 2023, totaling $170 billion
- Inventory carrying costs for retailers were 25% of inventory value in 2023
- Restaurant marketing expenses rose to 3.2% of revenue in 2023, focused on digital ads
- Property taxes for retail properties averaged $1.2 million per store in 2023
- Supply chain logistics costs for grocery retail: 5.1% of sales in 2023, up 15%
- Insurance premiums for restaurants increased 18% to $15,000 average annual per location in 2023
- Retail technology investments (POS, AI) totaled $14 billion in 2023, 2.1% of sales
- Waste management costs for restaurants: $1,200 per month average in 2023
- Employee benefits costs (healthcare) 8.5% of payroll in retail 2023
- Packaging costs for takeout rose 22% to 4% of restaurant sales in 2023
- Maintenance and repairs for retail stores: $450,000 average per large chain store in 2023
- Franchise royalty fees averaged 5.5% of gross sales for restaurants in 2023
- Digital advertising costs per click for retail: $1.20 average in 2023
Costs and Expenses Interpretation
Running this financial gauntlet, where labor bites a bigger chunk, rent demands its prime pound of flesh, and every crumb from packaging to credit cards takes its cut, feels less like doing business and more like trying to keep a beach ball made of hundred-dollar bills submerged with one hand.
Customer Demographics and Behavior
- U.S. consumers dined out 5.6 times per week on average in 2023, up from 4.9 in 2022
- 68% of U.S. consumers prefer quick-service over full-service restaurants in 2023
- Online ordering accounted for 37% of restaurant sales in 2023, driven by millennials
- 42% of Gen Z shoppers buy apparel online exclusively in 2023
- Average restaurant check size rose to $22.50 in 2023, up 6.8% YoY due to menu price hikes
- 75% of U.S. consumers aged 18-34 use mobile apps for retail purchases in 2023
- Hispanic consumers represent 20% of restaurant patrons, spending 15% more per visit in 2023
- 56% of shoppers return to stores with good customer service in retail 2023
- Delivery orders made up 22% of restaurant sales in 2023, preferred by urban millennials
- Boomers (55+) account for 28% of grocery retail spending in 2023
- 64% of consumers cite convenience as top factor for restaurant choice in 2023
- Female shoppers drive 52% of apparel retail purchases in 2023
- Loyalty program members spend 18% more in retail annually in 2023
- 49% of parents with kids under 12 prefer family dining experiences in 2023
- Mobile payments used by 77% of retail transactions under $25 in 2023
- Health-conscious consumers (35% of population) boosted healthy menu sales 12% in restaurants 2023
- 61% of urban consumers shop omnichannel (online+store) in retail 2023
- Average frequency of restaurant visits: 4.2 per month for households earning $100k+ in 2023
- Vegan/plant-based options ordered by 15% of restaurant guests in 2023, up 28%
- Retail food-at-home spending per household: $5,703 annually in 2023
Customer Demographics and Behavior Interpretation
Despite rising prices and a relentless hunger for convenience, the American consumer in 2023 is a walking paradox, simultaneously ordering avocado toast on their phone from a quick-service joint while their online-only sneakers arrive at a door paid for by grocery-savvy Boomers.
Employment Statistics
- U.S. retail employment stood at 15.7 million jobs in 2023, accounting for 10% of private sector employment
- Restaurant industry employed 15.9 million people in 2023, representing one in 10 U.S. jobs
- Retail trade sector added 214,000 jobs in 2023, with average hourly wage at $21.50
- Food service workers numbered 12.4 million in 2023, with 1.2 million new jobs created post-pandemic
- U.S. retail managers averaged 1.8 million employed in 2023, with median wage of $62,000 annually
- Restaurant back-of-house staff (cooks, dishwashers) totaled 6.7 million in 2023, facing 4.2% turnover rate
- Retail salespersons employment reached 3.9 million in 2023, down 1.1% from 2022 peak
- Quick-service restaurant employment was 4.8 million in 2023, up 3.5% YoY
- Supermarket employment stood at 2.6 million in 2023, with labor costs at 10.2% of sales
- Full-service restaurant servers numbered 2.1 million in 2023, average wage $15.20/hour including tips
- E-commerce retail jobs grew to 1.2 million in 2023, 12% higher than brick-and-mortar roles
- U.S. retail workforce diversity: 55% female, 40% Hispanic/Latino in 2023
- Restaurant industry projected 200,000 job openings monthly in 2023 due to turnover
- Retail stockers and order fillers: 2.3 million employed, median wage $16.40/hour in 2023
- Hotel and restaurant combined employment: 18.5 million in 2023
- First-line retail supervisors: 1.4 million jobs in 2023, growth of 2.1%
- Bartenders in restaurants: 450,000 employed in 2023, up 5.6%
- Cashiers in retail: 3.2 million in 2023, declining 3.4% due to self-checkout
- Chefs and head cooks: 250,000 in restaurants 2023, wage $58,000 median
Employment Statistics Interpretation
America's economy runs on a high-turnover engine of service, where millions stitch together livelihoods from wages that barely keep pace with the relentless churn of orders and customers, proving that our collective comfort is built on a foundation of perpetually revolving doors.
Growth Projections
- U.S. retail industry expected to grow 2.5-3.5% in sales to $7.3 trillion in 2024
- Restaurant sales projected to reach $1.5 trillion by 2030, CAGR 4.2% from 2023
- Global retail e-commerce sales to hit $8.1 trillion by 2026, 22% of total retail
- U.S. quick-service restaurant market to grow at 5.8% CAGR to 2028
- Grocery delivery market projected to $250 billion by 2027, 20% CAGR
- Full-service restaurants expected 3.1% annual growth through 2030
- U.S. retail employment to increase by 1.2 million jobs by 2032
- Plant-based food retail sales to grow 10% annually to $25 billion by 2027
- Off-premise restaurant sales to comprise 60% of total by 2025
- Apparel e-commerce to reach 40% of total apparel sales by 2027
- U.S. restaurant industry job growth: 1 million new jobs by 2028
- Retail media networks revenue to $100 billion globally by 2028, 15% CAGR
- Ghost kitchens market to $71 billion by 2027, 28% CAGR
- U.S. convenience store sales projected $800 billion by 2025
- Sustainable retail products sales to grow 9% annually to 2030
- Drive-thru restaurant sales to increase 7% YoY through 2025
- Omnichannel retail penetration to 75% of sales by 2027
- Alcoholic beverage sales in restaurants to $120 billion by 2028
- U.S. retail square footage to decline 1% annually to 2030 due to e-com
- Food hall market to double to $2 billion by 2026
- Retail AI adoption to save $40 billion in costs by 2025
Growth Projections Interpretation
While brick-and-mortar stores are learning to thrive with less physical space, the collective future of retail and restaurants is being built online, at the drive-thru, and by ghost kitchens, proving that how we get our goods and meals is evolving faster than our appetite for them.
Revenue and Sales
- In 2023, U.S. retail sales totaled $7.04 trillion, representing a 3.6% increase from 2022 and accounting for approximately 25% of the U.S. GDP
- The restaurant industry contributed $1.1 trillion to the U.S. GDP in 2023, with total sales reaching $1.03 trillion, up 8.5% from 2022
- E-commerce sales in the U.S. retail sector hit $1.1 trillion in 2023, comprising 15.6% of total retail sales
- Quick-service restaurants generated $404 billion in U.S. sales in 2023, representing 39% of total restaurant sales
- U.S. grocery store sales reached $1.02 trillion in 2023, with a 2.1% year-over-year growth
- Full-service restaurants in the U.S. saw sales of $366 billion in 2023, up 6.2% from the previous year
- Apparel retail sales in the U.S. amounted to $369 billion in 2023, facing a 1.5% decline due to inventory overhang
- U.S. foodservice sales (restaurants and bars) totaled $1.03 trillion in 2023, driven by a 9.2% increase in limited-service establishments
- General merchandise stores generated $852 billion in U.S. sales in 2023, up 4.3% YoY
- Bar and tavern sales in the U.S. reached $42 billion in 2023, with a 7.8% growth rate
- Health and personal care retail sales hit $418 billion in 2023, growing 8.7% amid wellness trends
- U.S. restaurant sales per capita were $3,038 in 2023, reflecting strong consumer spending recovery
- Online grocery sales surged to $105 billion in 2023, up 10.2% from 2022
- U.S. retail holiday sales (Nov-Dec 2023) totaled $1.07 trillion, exceeding forecasts by 4%
- Casual dining chain sales reached $128 billion in 2023, with a 5.4% increase
- Building materials retail sales were $1.1 trillion in 2023, boosted by home improvement trends
- U.S. restaurant industry sales growth averaged 7.1% annually from 2019-2023
- Electronics and appliance store sales totaled $88 billion in 2023, down 2.3% YoY
- Food and drinking place sales (NAICS 722) were $999 billion in 2023
- Sporting goods retail sales hit $58 billion in 2023, up 6.5%
Revenue and Sales Interpretation
While Americans' online shopping carts overflowed and quick-service kitchens sizzled to the tune of trillions, the enduring, if slightly indecisive, love affair between eating out and stocking the pantry proved the economy is still fundamentally powered by our stomachs and streaming subscriptions.
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