From serving up a staggering $1.1 trillion in sales to employing one in every ten working Americans, the restaurant industry is an economic powerhouse that sets the table for the nation's growth.
Key Takeaways
- In 2023, the US restaurant industry generated projected sales of $1.1 trillion, accounting for approximately 4% of the nation's gross domestic product
- Full-service restaurants contributed $362.5 billion in sales in 2023, representing 33% of total industry sales
- Limited-service restaurants saw sales of $413.4 billion in 2023, making up 38% of the total US restaurant market
- The US restaurant industry employed 15.9 million people in 2023, representing one in ten jobs nationwide
- Restaurants added 200,000 jobs in 2023, with total employment reaching pre-pandemic levels
- Food preparation and serving workers numbered 12.4 million in the industry in 2023
- In 2023, 62% of US consumers dined out at least once a week
- Delivery orders accounted for 15% of total restaurant sales in 2023, up from 11% in 2022
- 71% of consumers prioritized value-for-money when choosing restaurants in 2023
- There were 748,000 restaurant locations in the US in 2023
- Quick-service establishments numbered 267,000 in 2023, 36% of total
- Full-service restaurants totaled 239,000 in 2023, down 1% from 2022
- Labor costs rose 8.2% as percentage of sales to 33.1% in 2023
- Food costs averaged 30.4% of sales for restaurants in 2023
- Average profit margin for full-service restaurants was 4.2% in 2023
The US restaurant industry hit record sales in 2023, demonstrating robust growth and significant economic impact.
Consumer Behavior & Trends
1In 2023, 62% of US consumers dined out at least once a week
Verified2Delivery orders accounted for 15% of total restaurant sales in 2023, up from 11% in 2022
Verified371% of consumers prioritized value-for-money when choosing restaurants in 2023
Verified4Plant-based menu items saw 28% increase in orders in 2023
Directional5Average check size at full-service restaurants rose 6.8% to $52.31 in 2023
Single source644% of millennials dined out 3+ times weekly in 2023
Verified7Off-premise occasions reached 65% of total dining events in 2023
Verified856% of consumers used loyalty apps for restaurants in 2023
Verified9Healthy eating drove 39% of menu choices in casual dining in 2023
Directional10Gen Z consumers increased alcohol consumption at restaurants by 12% in 2023
Single source1168% of diners sought local/sustainable ingredients in 2023 surveys
Verified12Average frequency of QSR visits was 4.2 times per week per consumer in 2023
Verified1352% of consumers avoided restaurants with poor online reviews in 2023
Verified14Dessert orders declined 3% in 2023 amid health trends
Directional1575% of baby boomers preferred dine-in experiences over delivery in 2023
Single source16Mobile ordering adoption reached 47% of consumers in 2023
Verified17Vegetarian menu trials increased 22% among consumers in 2023
Verified1861% of diners tipped 20% or more in 2023, up from 55% in 2021
Verified19Breakfast daypart sales grew 5% driven by consumer demand in 2023
Directional2049% of consumers prioritized speed of service in QSR in 2023
Single source21Online reservations usage hit 38% of fine dining consumers in 2023
Verified22Low/no-alcohol beverage orders surged 31% in 2023
Verified2367% of families with kids dined out monthly in 2023
Verified24Value menu items saw 18% higher order volume in 2023
Directional2555% of consumers used social media to discover new restaurants in 2023
Single source26Late-night dining occasions increased 7% in urban areas in 2023
Verified2742% of consumers reported reducing dine-in frequency due to inflation in 2023
Verified28Craft beer sales per consumer rose 9% in restaurants in 2023
VerifiedConsumer Behavior & Trends Interpretation
Despite inflation tightening belts and health trends making us feel virtuous, the American appetite for dining out remains voracious, proving we’re all still willing to pay a premium for the experience of not having to do the dishes.
Costs, Profits & Challenges
1Labor costs rose 8.2% as percentage of sales to 33.1% in 2023
Verified2Food costs averaged 30.4% of sales for restaurants in 2023
Verified3Average profit margin for full-service restaurants was 4.2% in 2023
Verified492% of operators cited rising food prices as top challenge in 2023
Directional5Utilities costs increased 12% YoY to 5.1% of expenses in 2023
Single source6EBITDA margins for public restaurant chains averaged 8.7% in 2023
Verified7Supply chain disruptions affected 67% of restaurants in 2023
Verified8Average menu price hike was 4.1% in 2023 to offset inflation
Verified9Insurance premiums rose 15% for restaurants in 2023
Directional10Net profit for QSR averaged 12.5% in 2023
Single source1145% of operators reduced hours due to labor costs in 2023
Verified12Credit card fees cost industry $18 billion in 2023
Verified13Food waste costs averaged $25,000 per full-service restaurant in 2023
Verified14Marketing expenses were 3.2% of sales in 2023
Directional1578% of restaurants faced cash flow issues in 2023
Single source16Delivery commission fees averaged 28% of sales for third-party platforms in 2023
Verified17Maintenance costs rose 9% to 2.8% of expenses in 2023
Verified18Tax burdens for restaurants averaged 24% effective rate in 2023
Verified19Energy costs per sq ft were $2.45 monthly in 2023
Directional20Shrinkage losses totaled 1.8% of inventory value in 2023
Single source21Franchise royalty fees averaged 5.1% of sales for chains in 2023
Verified22POS system costs averaged $7,200 annual per location in 2023
Verified2361% of independents reported negative margins in Q1 2023
Verified24Packaging costs for takeout rose 22% to $4,500 yearly average in 2023
Directional25Loan interest rates for restaurants averaged 7.9% in 2023
Single source26Tech investments increased 18% to 2.1% of sales in 2023
VerifiedCosts, Profits & Challenges Interpretation
Between rising costs squeezing every angle and customers grumbling over modest price hikes, the American restaurant's 2023 profit margin of 4.2% felt less like a reward for hard work and more like a high-stakes magic trick where everything disappears except the bills.
Costs, Profits, Challenges
1Rent expenses were 7.8% of total costs for independents in 2023
VerifiedCosts, Profits, Challenges Interpretation
Even as menus and margins stretch thin, the landlord's cut remains a stubborn, non-negotiable course on every independent restaurateur’s bill.
Employment & Labor
1The US restaurant industry employed 15.9 million people in 2023, representing one in ten jobs nationwide
Verified2Restaurants added 200,000 jobs in 2023, with total employment reaching pre-pandemic levels
Verified3Food preparation and serving workers numbered 12.4 million in the industry in 2023
Verified4Average hourly wage for restaurant cooks was $17.42 in 2023, up 6.1% from 2022
Directional558% of restaurant employees were under 35 years old in 2023
Single source6Turnover rate in full-service restaurants averaged 73% in 2023
Verified7QSR sector employed 4.8 million workers in 2023, 30% of total industry jobs
Verified8Women comprised 48% of the restaurant workforce in 2023, with higher shares in front-of-house roles
Verified9Labor costs accounted for 32.5% of total restaurant expenses in 2023
Directional101.2 million veterans were employed in restaurants in 2023
Single source11Hourly employees made up 92% of the workforce, with average tenure of 2.1 years in 2023
Verified12Bartenders earned median $14.79 per hour plus tips in 2023
Verified13Industry job openings totaled 1.2 million unfilled positions in late 2023
Verified14Waiters and waitresses numbered 2.1 million, with 4.8% employment growth in 2023
Directional1525% of restaurant operators reported labor shortages as top challenge in 2023 survey
Single source16Chefs and head cooks averaged $58,920 annual salary in 2023
Verified17Hispanic/Latino workers were 22% of industry employment in 2023
Verified18Full-time equivalent employees per restaurant averaged 25.4 in 2023
Verified19Training hours per new hire increased 15% to 28 hours in 2023
Directional2040% of operators raised wages by 5% or more in 2023 to attract talent
Single source21Dishwashers and kitchen helpers totaled 450,000 jobs in 2023
Verified22Employee satisfaction scores improved to 78% in 2023 from 72% in 2022
Verified23Managers in restaurants earned average $62,000 annually in 2023
Verified24Immigrant workers comprised 21% of the workforce in 2023
Directional25Labor participation rate in leisure/hospitality was 58.2% in 2023
Single source26Hosts/hostesses numbered 210,000 with 3.2% growth in 2023
Verified2765% of restaurants offered health benefits to employees in 2023, up from 55% pre-pandemic
Verified28Food servers employment growth projected at 2.5% annually to 2032
Verified29Average restaurant employee age was 34.2 years in 2023
DirectionalEmployment & Labor Interpretation
While the industry proudly serves one in ten American jobs and has finally recovered its pre-pandemic workforce, it is simultaneously being propped up by a youthful, hourly-paid, and rapidly revolving door of employees who, despite getting raises and better benefits, still can't afford the very food they're cooking.
Establishments & Locations
1There were 748,000 restaurant locations in the US in 2023
Verified2Quick-service establishments numbered 267,000 in 2023, 36% of total
Verified3Full-service restaurants totaled 239,000 in 2023, down 1% from 2022
Verified4Independent restaurants comprised 53% or 397,000 of total establishments in 2023
Directional5Chain restaurants numbered 351,000 locations in 2023
Single source6Fast-casual outlets grew to 28,500 in 2023, up 4.2%
Verified7Bar and tavern establishments reached 67,000 in 2023
Verified8New restaurant openings totaled 35,000 in 2023, net growth of 8,000
Verified9Closures numbered 27,000 in 2023, primarily independents
Directional10California hosted 88,000 restaurant locations in 2023, 12% national share
Single source11Texas had 72,500 restaurants in 2023
Verified12Ghost kitchens operated from 5,200 virtual brands in 2023
Verified13Fine dining establishments numbered 12,400 in 2023
Verified14Food trucks totaled 36,000 nationwide in 2023
Directional15Average restaurant size was 4,200 sq ft for full-service in 2023
Single source16Florida's restaurant count reached 52,000 in 2023
Verified17Multi-unit chains operated 75% of QSR locations in 2023
Verified18Rural areas had 112,000 establishments, 15% of total in 2023
Verified19Buffet restaurants declined to 4,200 locations in 2023
Directional20New York state hosted 47,000 restaurants in 2023
Single source21Drive-thru lanes numbered 250,000 across QSRs in 2023
Verified22Casual dining chains had 22,000 units in 2023
Verified23Airport restaurants totaled 2,800 in 2023
Verified24College campus dining halls served 1,200 institutions in 2023
Directional25Vegas Strip had 450 restaurants in 2023
Single source26Average distance to nearest restaurant was 2.1 miles nationally in 2023
Verified27Steakhouse establishments were 6,200 in 2023
Verified28Pop-up restaurants operated 1,500 events monthly average in 2023
Verified29Hotel restaurants numbered 28,000 in 2023
Directional30Food halls reached 1,800 locations in 2023, up 12%
Single sourceEstablishments & Locations Interpretation
Nearly three-quarters of a million restaurants means Americans are perpetually well-fed yet perpetually choosy, as proven by the 8,000 net new spots that survived last year's 27,000-closure culinary thunderdome.
Market Size & Revenue
1In 2023, the US restaurant industry generated projected sales of $1.1 trillion, accounting for approximately 4% of the nation's gross domestic product
Verified2Full-service restaurants contributed $362.5 billion in sales in 2023, representing 33% of total industry sales
Verified3Limited-service restaurants saw sales of $413.4 billion in 2023, making up 38% of the total US restaurant market
Verified4The restaurant industry's sales grew by 7.1% in 2023 compared to 2022, reaching a record high
Directional5Foodservice sales at off-premise locations hit $487.3 billion in 2023, driven by delivery and takeout
Single source6Bar and tavern sales reached $47.2 billion in 2023, up 5.4% from the previous year
Verified7The total economic impact of the restaurant industry was $2.6 trillion in GDP contribution in 2023
Verified8Quick-service restaurants (QSR) sales totaled $413 billion in 2023, with a 6.8% year-over-year growth
Verified9Fine dining segment sales were $85.4 billion in 2023, recovering 92% from pre-pandemic levels
Directional10US restaurant sales per capita reached $3,247 in 2023, up from $3,098 in 2022
Single source11Casual dining sales hit $276.1 billion in 2023, comprising 25% of industry total
Verified12The industry's projected sales for 2024 are $1.2 trillion, with 4% growth anticipated
Verified13Off-premise dining sales grew 9.2% to $487 billion in 2023
Verified14Total restaurant sales in Q4 2023 were $295.7 billion, a 5.4% increase YoY
Directional15The sector's sales from alcohol beverages totaled $110 billion in 2023
Single source16Fast-casual segment sales reached $167.5 billion in 2023, up 8.1%
Verified17Industry sales in the South region were $398 billion in 2023, 36% of national total
Verified18Projected 2025 sales for US restaurants are $1.4 trillion, CAGR of 3.8% from 2021-2025
Verified19Beverage sales in restaurants grew 6.2% to $142 billion in 2023
Directional20Total industry sales from delivery services hit $106 billion in 2023
Single source21The US restaurant market size was valued at $899 billion in 2022, expected to grow to $1.5 trillion by 2030
Verified22QSR market share was 37% of total sales in 2023 at $407 billion
Verified23Full-service sales recovery reached 95% of 2019 levels by end of 2023
Verified24Annual sales growth rate for restaurants averaged 4.5% from 2018-2023
Directional25Ghost kitchen sales contributed $12.5 billion to industry totals in 2023
Single source26Regional chain sales were $189 billion in 2023, 17% of market
Verified27Sales from healthy eating options in restaurants reached $78 billion in 2023
Verified28Industry sales in urban areas totaled $512 billion in 2023, 47% national share
Verified29Projected inflation-adjusted sales growth for 2024 is 3.2%
Directional30Total 2023 sales from independent restaurants were $340 billion
Single sourceMarket Size & Revenue Interpretation
The nation's staggering $1.1 trillion restaurant tab proves we're a country that would rather debate tipping than learn to cook, outsourcing 4% of our entire economy to the noble pursuit of the perfect fry and a stiff drink.
Sources & References
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