Forget what you think you know about the restaurant industry because in 2023, the powerhouse sector not only served up a staggering $1.1 trillion in sales but also dished out a full 4% of the entire U.S. GDP.
Key Takeaways
- In 2023, total U.S. restaurant industry sales reached $1.1 trillion, representing a 5.4% increase from 2022 and accounting for 4% of the nation's gross domestic product
- Full-service restaurants generated $366.5 billion in sales in 2023, up 6.2% from the previous year, while limited-service restaurants contributed $389.2 billion
- Quick-service restaurants (QSRs) accounted for 35% of total restaurant sales in 2023, totaling approximately $385 billion
- The U.S. restaurant industry employed 15.9 million people in 2023, representing 10% of the private workforce
- Restaurants added 456,000 jobs in 2023, with monthly gains averaging 38,000
- Foodservice workforce participation rate stood at 5.8% of U.S. population in 2023
- Average consumer spent $3,400 on eating out in 2023, up 8% from 2022
- 57% of adults dined out weekly in 2023, with millennials leading at 65%
- Delivery orders grew to 22% of off-premise sales in 2023, average check $25
- Full-service restaurants had profit margins of 4.2% in 2023, down from 5.1% in 2022 due to labor costs
- Food cost percentage averaged 29.8% for QSRs in 2023, up 1.2 points YoY
- Average table turn time in casual dining was 45 minutes in 2023
- U.S. restaurant industry expected to grow 4% annually through 2028, reaching $1.5 trillion
- Fast-casual segment projected to add 1,200 units by 2025, CAGR 7.2%
- Employment forecasted to reach 17 million by 2028, adding 1.1 million jobs
U.S. restaurant sales hit a record $1.1 trillion in 2023, fueling strong economic and employment growth.
Consumer Spending and Habits
- Average consumer spent $3,400 on eating out in 2023, up 8% from 2022
- 57% of adults dined out weekly in 2023, with millennials leading at 65%
- Delivery orders grew to 22% of off-premise sales in 2023, average check $25
- 76% of consumers used loyalty apps at least monthly in 2023, influencing 15% higher spend
- Average restaurant check size increased 7.2% to $22.50 in 2023 due to menu price hikes
- Gen Z spent 12% more per capita on fast-casual than boomers in 2023
- 62% of diners sought sustainable sourcing info on menus in 2023 surveys
- Takeout orders averaged 28% of sales, with 45% from mobile orders in 2023
- 49% of consumers traded down to value menus in late 2023 amid inflation
- Alcohol beverage spend per diner up 9% to $18 in full-service in 2023
- 71% of families with kids dined out monthly in 2023, favoring casual concepts
- Plant-based meal orders rose 18% YoY, 11% of total entrees in 2023
- Breakfast dining out frequency up 14% to 2.1 times/month per consumer in 2023
- 55% of consumers prioritized speed of service in QSR choices in 2023
- Average delivery tip rate fell to 18% in 2023 from 20% pre-2022
- Urban consumers dined out 22% more than rural in 2023
- 68% tried new restaurants in 2023, driven by social media influence
- Dessert upsell success rate 32% in casual dining in 2023
- 41% of diners used coupons/discounts weekly in 2023
- Per capita spend on QSRs $1,200 annually in 2023
- Weekend dinner occasions peaked at 3.8 visits/month per household in 2023
- Health-focused menu choices made by 64% of consumers in 2023
- Group dining (4+ people) averaged $120 check in full-service 2023
- 52% of Boomers preferred full-service over QSR in 2023
- Mobile payment usage hit 67% of transactions in restaurants 2023
- Vegetarian options ordered by 24% of diners monthly in 2023
- Late-night dining (after 9pm) grew 11% in urban areas 2023
- 73% of consumers influenced by online reviews before dining out 2023
- Average family of four restaurant spend $2,800/year in 2023
- Coffee/tea beverages upsold to 45% of breakfast diners in 2023
Consumer Spending and Habits Interpretation
In 2023, we collectively paid more to eat out more often, chasing convenience and loyalty points with one hand while hunting for value and sustainability with the other, proving that our relationship with restaurants is a beautifully complicated blend of indulgence, guilt, and strategic discounting.
Employment and Labor
- The U.S. restaurant industry employed 15.9 million people in 2023, representing 10% of the private workforce
- Restaurants added 456,000 jobs in 2023, with monthly gains averaging 38,000
- Foodservice workforce participation rate stood at 5.8% of U.S. population in 2023
- Average hourly wage for restaurant workers rose to $19.50 in 2023, up 6.2% from 2022
- 8.5 million restaurant employees were part-time in 2023, comprising 53% of total staff
- Turnover rate in full-service restaurants averaged 73% in 2023, down from 80% pre-pandemic
- Quick-service restaurants employed 6.2 million people in 2023, 39% of industry total
- Female workers made up 52% of restaurant employees in 2023, with higher rates in servers (71%)
- Hispanic/Latino workers comprised 28% of restaurant workforce in 2023
- Chefs and head cooks numbered 272,000 in 2023, with median wage $58,920 annually
- Servers employed 2.3 million in 2023, largest occupation, median wage $12.15/hour plus tips
- Labor costs accounted for 32.5% of full-service restaurant expenses in 2023
- 1.2 million restaurant jobs unfilled as of late 2023, vacancy rate 7.5%
- Gen Z workers (18-24) represented 25% of hires in 2023, up from 20% in 2022
- Benefits offered to 68% of full-time restaurant staff in 2023, including health insurance
- Bartenders numbered 450,000 in 2023, median wage $14.90/hour
- Restaurant managers totaled 550,000 in 2023, average salary $62,000
- Immigrants filled 22% of restaurant jobs in 2023, critical in back-of-house roles
- Training hours per new hire averaged 45 in 2023 for QSRs, 120 for full-service
- Unionized restaurant workers at 1.2% of workforce in 2023, mostly in casinos/hotels
- Hourly food prep workers wage averaged $16.80 in 2023, up 5.6%
- Dishwashers employed 420,000, median wage $13.50/hour in 2023
- Delivery drivers in restaurants numbered 1.1 million in 2023
- Northeast region had highest restaurant employment density at 12% of workforce in 2023
- Weekend staffing shortages affected 65% of restaurants in 2023 surveys
- Remote/hybrid management roles grew 15% in restaurants in 2023
- Cooks (line) totaled 1.8 million, median wage $17.20/hour in 2023
- 40% of restaurant operators reported labor as top challenge in 2023
Employment and Labor Interpretation
The restaurant industry, a vibrant and perpetually hungry engine of the American economy, simultaneously serves up ten percent of our jobs with a side of stark contrasts—boasting record employment and rising wages while wrestling with a chef's-knife-sharp turnover, a heavy reliance on part-time and immigrant labor, and the constant, simmering pressure of having over a million vacancies to fill.
Industry Growth and Projections
- U.S. restaurant industry expected to grow 4% annually through 2028, reaching $1.5 trillion
- Fast-casual segment projected to add 1,200 units by 2025, CAGR 7.2%
- Employment forecasted to reach 17 million by 2028, adding 1.1 million jobs
- Delivery market share projected to stabilize at 18% of sales by 2027
- Plant-based sales expected to grow 20% annually to $7 billion by 2027
- AI adoption in operations projected for 60% of restaurants by 2026
- Independent operators market share to decline to 40% by 2028 from 45%
- Sustainability initiatives to cover 75% of chains by 2027
- Labor shortages projected to ease with 3% unemployment in foodservice by 2026
- Off-premise sales growth to slow to 2% CAGR post-2025
- Fine dining recovery to full pre-COVID levels by 2025, +6% growth
- Ghost kitchen numbers to double to 10,000 by 2027
- Menu price inflation expected at 3.5% annually through 2028
- QSR drive-thru tech to handle 30% more volume by 2026
- Vegan segment CAGR 15% to 2028
- Regional Mexican concepts to grow 9% annually
- Hotel restaurant revenue up 5% CAGR to 2030
- Contactless everything standard by 2026 in 90% of locations
- Industry profit margins to average 6% by 2028 with efficiencies
- Asian fusion growth at 8.5% CAGR through 2027
Industry Growth and Projections Interpretation
Despite being stretched thinner than a fast-casual pizza crust by labor woes, inflation, and the relentless rise of delivery, the industry is shrewdly automating, diversifying, and greening its way toward a colossal $1.5 trillion future, proving that even with slim margins, there’s always room on the American plate for both a vegan burrito and a perfectly seared steak.
Operational Metrics
- Full-service restaurants had profit margins of 4.2% in 2023, down from 5.1% in 2022 due to labor costs
- Food cost percentage averaged 29.8% for QSRs in 2023, up 1.2 points YoY
- Average table turn time in casual dining was 45 minutes in 2023
- Inventory turnover ratio for restaurants stood at 12.5 times/year in 2023
- 68% of restaurants used POS systems integrated with inventory in 2023
- Utility costs rose 12% to 4.5% of expenses in 2023 for full-service
- Online ordering penetration reached 55% of sales in fast-casual 2023
- Waste reduction programs adopted by 42% of restaurants, saving 8% on food costs 2023
- Kitchen equipment replacement cycle averaged 7 years in 2023
- Delivery fulfillment time averaged 28 minutes in QSRs 2023
- Menu item count averaged 45 in full-service restaurants 2023, down 5% for simplification
- Labor scheduling software used by 75% of chains in 2023, reducing overtime 15%
- Average seat occupancy rate 72% during peak hours in 2023
- Third-party delivery fees averaged 28% of order value in 2023
- Energy efficiency upgrades cut utility bills 11% for 35% of restaurants 2023
- Customer satisfaction score (NPS) averaged 68 for QSRs in 2023
- Drive-thru wait time averaged 4.2 minutes in 2023, down 10% with tech
- 52% of restaurants implemented dynamic pricing in 2023, boosting revenue 5%
- Food safety audit pass rate 96% industry-wide in 2023
- POS transaction volume per location averaged 1,200/day in high-volume QSRs 2023
- Ghost kitchens operated by 22% of chains, generating 15% of delivery sales 2023
- Contactless payment adoption 82% in 2023
- Average repair/maintenance cost $25,000 per unit annually in 2023
- Tabletop ordering kiosks boosted upsells 20% in 40% of casual diners 2023
- Supply chain disruption affected 31% of restaurants with 5-day delays average 2023
Operational Metrics Interpretation
The restaurant industry is a high-stakes ballet where shaving seconds off a drive-thru, turning tables before the ice melts, and waging war on a 28% delivery fee are the delicate steps required to protect a profit margin so thin it could be a menu insert.
Revenue and Sales
- In 2023, total U.S. restaurant industry sales reached $1.1 trillion, representing a 5.4% increase from 2022 and accounting for 4% of the nation's gross domestic product
- Full-service restaurants generated $366.5 billion in sales in 2023, up 6.2% from the previous year, while limited-service restaurants contributed $389.2 billion
- Quick-service restaurants (QSRs) accounted for 35% of total restaurant sales in 2023, totaling approximately $385 billion
- The top 500 U.S. restaurant chains generated $477 billion in 2023 sales, a 9.2% year-over-year growth
- Average annual sales per full-service restaurant in the U.S. were $1.8 million in 2023, compared to $1.4 million for limited-service
- Restaurant sales per capita in the U.S. reached $3,095 in 2023, driven by inflation and increased dining out frequency
- Off-premise sales, including takeout and delivery, comprised 21% of total restaurant sales in 2023, down slightly from pandemic peaks
- Bar and tavern segment sales grew 8.1% to $47.2 billion in 2023, fueled by cocktail trends
- U.S. restaurant industry projected sales for 2024 estimated at $1.2 trillion, a 4% increase over 2023
- Fine dining restaurants saw a 7.5% sales increase in 2023, reaching $120 billion nationally
- Fast-casual segment sales hit $42.5 billion in 2023, growing 10.3% amid health-conscious trends
- Regional chain sales in the Midwest U.S. totaled $150 billion in 2023, up 5.8%
- Alcohol sales in restaurants contributed $120 billion to industry revenue in 2023, 11% of total
- U.S. restaurant sales growth slowed to 3.9% in Q4 2023 from 7.1% earlier in the year
- Independent restaurants generated 45% of total industry sales in 2023, approximately $495 billion
- Chicken restaurant sales reached $95 billion in 2023, leading protein categories
- Pizza segment sales were $47 billion in 2023, with 6.2% growth
- Seafood restaurant sales grew 4.8% to $28.5 billion in 2023
- Steakhouse sales hit $32 billion in 2023, up 5.1% YoY
- Buffet and casual dining sales recovered to $110 billion in 2023, post-COVID
- U.S. restaurant industry revenue as a percentage of GDP stable at 4% in 2023
- Limited-service restaurants outsold full-service by 6% margin in 2023 sales volume
- Tech-enabled sales (apps/delivery) accounted for 15% of revenue in 2023
- Southern U.S. region led with $380 billion in restaurant sales in 2023
- Vegan/plant-based menu item sales grew 12% to $1.2 billion in 2023
- Breakfast segment sales reached $65 billion in 2023, up 7%
- Dessert-only shops sales hit $8.5 billion in 2023, growing 9.2%
- Coffee shop restaurant sales totaled $55 billion in 2023
- Sandwich shop sales were $42 billion in 2023, up 8.4%
- Mexican cuisine restaurants generated $95 billion in sales in 2023
Revenue and Sales Interpretation
In a nation where nearly every craving, from a late-night taco to a meticulously crafted cocktail, is a trillion-dollar business, the restaurant industry has firmly planted its flag—comprising 4% of the entire U.S. economy—proving that while our appetites may be fickle, our collective desire to not cook is a remarkably stable growth market.