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
- 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
- Plant-based menu items saw 28% increase in orders in 2023
- Average check size at full-service restaurants rose 6.8% to $52.31 in 2023
- 44% of millennials dined out 3+ times weekly in 2023
- Off-premise occasions reached 65% of total dining events in 2023
- 56% of consumers used loyalty apps for restaurants in 2023
- Healthy eating drove 39% of menu choices in casual dining in 2023
- Gen Z consumers increased alcohol consumption at restaurants by 12% in 2023
- 68% of diners sought local/sustainable ingredients in 2023 surveys
- Average frequency of QSR visits was 4.2 times per week per consumer in 2023
- 52% of consumers avoided restaurants with poor online reviews in 2023
- Dessert orders declined 3% in 2023 amid health trends
- 75% of baby boomers preferred dine-in experiences over delivery in 2023
- Mobile ordering adoption reached 47% of consumers in 2023
- Vegetarian menu trials increased 22% among consumers in 2023
- 61% of diners tipped 20% or more in 2023, up from 55% in 2021
- Breakfast daypart sales grew 5% driven by consumer demand in 2023
- 49% of consumers prioritized speed of service in QSR in 2023
- Online reservations usage hit 38% of fine dining consumers in 2023
- Low/no-alcohol beverage orders surged 31% in 2023
- 67% of families with kids dined out monthly in 2023
- Value menu items saw 18% higher order volume in 2023
- 55% of consumers used social media to discover new restaurants in 2023
- Late-night dining occasions increased 7% in urban areas in 2023
- 42% of consumers reported reducing dine-in frequency due to inflation in 2023
- Craft beer sales per consumer rose 9% in restaurants in 2023
Consumer 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
- 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
- 92% of operators cited rising food prices as top challenge in 2023
- Utilities costs increased 12% YoY to 5.1% of expenses in 2023
- EBITDA margins for public restaurant chains averaged 8.7% in 2023
- Supply chain disruptions affected 67% of restaurants in 2023
- Average menu price hike was 4.1% in 2023 to offset inflation
- Insurance premiums rose 15% for restaurants in 2023
- Net profit for QSR averaged 12.5% in 2023
- 45% of operators reduced hours due to labor costs in 2023
- Credit card fees cost industry $18 billion in 2023
- Food waste costs averaged $25,000 per full-service restaurant in 2023
- Marketing expenses were 3.2% of sales in 2023
- 78% of restaurants faced cash flow issues in 2023
- Delivery commission fees averaged 28% of sales for third-party platforms in 2023
- Maintenance costs rose 9% to 2.8% of expenses in 2023
- Tax burdens for restaurants averaged 24% effective rate in 2023
- Energy costs per sq ft were $2.45 monthly in 2023
- Shrinkage losses totaled 1.8% of inventory value in 2023
- Franchise royalty fees averaged 5.1% of sales for chains in 2023
- POS system costs averaged $7,200 annual per location in 2023
- 61% of independents reported negative margins in Q1 2023
- Packaging costs for takeout rose 22% to $4,500 yearly average in 2023
- Loan interest rates for restaurants averaged 7.9% in 2023
- Tech investments increased 18% to 2.1% of sales in 2023
Costs, 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
- Rent expenses were 7.8% of total costs for independents in 2023
Costs, 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
- 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
- Average hourly wage for restaurant cooks was $17.42 in 2023, up 6.1% from 2022
- 58% of restaurant employees were under 35 years old in 2023
- Turnover rate in full-service restaurants averaged 73% in 2023
- QSR sector employed 4.8 million workers in 2023, 30% of total industry jobs
- Women comprised 48% of the restaurant workforce in 2023, with higher shares in front-of-house roles
- Labor costs accounted for 32.5% of total restaurant expenses in 2023
- 1.2 million veterans were employed in restaurants in 2023
- Hourly employees made up 92% of the workforce, with average tenure of 2.1 years in 2023
- Bartenders earned median $14.79 per hour plus tips in 2023
- Industry job openings totaled 1.2 million unfilled positions in late 2023
- Waiters and waitresses numbered 2.1 million, with 4.8% employment growth in 2023
- 25% of restaurant operators reported labor shortages as top challenge in 2023 survey
- Chefs and head cooks averaged $58,920 annual salary in 2023
- Hispanic/Latino workers were 22% of industry employment in 2023
- Full-time equivalent employees per restaurant averaged 25.4 in 2023
- Training hours per new hire increased 15% to 28 hours in 2023
- 40% of operators raised wages by 5% or more in 2023 to attract talent
- Dishwashers and kitchen helpers totaled 450,000 jobs in 2023
- Employee satisfaction scores improved to 78% in 2023 from 72% in 2022
- Managers in restaurants earned average $62,000 annually in 2023
- Immigrant workers comprised 21% of the workforce in 2023
- Labor participation rate in leisure/hospitality was 58.2% in 2023
- Hosts/hostesses numbered 210,000 with 3.2% growth in 2023
- 65% of restaurants offered health benefits to employees in 2023, up from 55% pre-pandemic
- Food servers employment growth projected at 2.5% annually to 2032
- Average restaurant employee age was 34.2 years in 2023
Employment & 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
- 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
- Independent restaurants comprised 53% or 397,000 of total establishments in 2023
- Chain restaurants numbered 351,000 locations in 2023
- Fast-casual outlets grew to 28,500 in 2023, up 4.2%
- Bar and tavern establishments reached 67,000 in 2023
- New restaurant openings totaled 35,000 in 2023, net growth of 8,000
- Closures numbered 27,000 in 2023, primarily independents
- California hosted 88,000 restaurant locations in 2023, 12% national share
- Texas had 72,500 restaurants in 2023
- Ghost kitchens operated from 5,200 virtual brands in 2023
- Fine dining establishments numbered 12,400 in 2023
- Food trucks totaled 36,000 nationwide in 2023
- Average restaurant size was 4,200 sq ft for full-service in 2023
- Florida's restaurant count reached 52,000 in 2023
- Multi-unit chains operated 75% of QSR locations in 2023
- Rural areas had 112,000 establishments, 15% of total in 2023
- Buffet restaurants declined to 4,200 locations in 2023
- New York state hosted 47,000 restaurants in 2023
- Drive-thru lanes numbered 250,000 across QSRs in 2023
- Casual dining chains had 22,000 units in 2023
- Airport restaurants totaled 2,800 in 2023
- College campus dining halls served 1,200 institutions in 2023
- Vegas Strip had 450 restaurants in 2023
- Average distance to nearest restaurant was 2.1 miles nationally in 2023
- Steakhouse establishments were 6,200 in 2023
- Pop-up restaurants operated 1,500 events monthly average in 2023
- Hotel restaurants numbered 28,000 in 2023
- Food halls reached 1,800 locations in 2023, up 12%
Establishments & 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
- 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 restaurant industry's sales grew by 7.1% in 2023 compared to 2022, reaching a record high
- Foodservice sales at off-premise locations hit $487.3 billion in 2023, driven by delivery and takeout
- Bar and tavern sales reached $47.2 billion in 2023, up 5.4% from the previous year
- The total economic impact of the restaurant industry was $2.6 trillion in GDP contribution in 2023
- Quick-service restaurants (QSR) sales totaled $413 billion in 2023, with a 6.8% year-over-year growth
- Fine dining segment sales were $85.4 billion in 2023, recovering 92% from pre-pandemic levels
- US restaurant sales per capita reached $3,247 in 2023, up from $3,098 in 2022
- Casual dining sales hit $276.1 billion in 2023, comprising 25% of industry total
- The industry's projected sales for 2024 are $1.2 trillion, with 4% growth anticipated
- Off-premise dining sales grew 9.2% to $487 billion in 2023
- Total restaurant sales in Q4 2023 were $295.7 billion, a 5.4% increase YoY
- The sector's sales from alcohol beverages totaled $110 billion in 2023
- Fast-casual segment sales reached $167.5 billion in 2023, up 8.1%
- Industry sales in the South region were $398 billion in 2023, 36% of national total
- Projected 2025 sales for US restaurants are $1.4 trillion, CAGR of 3.8% from 2021-2025
- Beverage sales in restaurants grew 6.2% to $142 billion in 2023
- Total industry sales from delivery services hit $106 billion in 2023
- The US restaurant market size was valued at $899 billion in 2022, expected to grow to $1.5 trillion by 2030
- QSR market share was 37% of total sales in 2023 at $407 billion
- Full-service sales recovery reached 95% of 2019 levels by end of 2023
- Annual sales growth rate for restaurants averaged 4.5% from 2018-2023
- Ghost kitchen sales contributed $12.5 billion to industry totals in 2023
- Regional chain sales were $189 billion in 2023, 17% of market
- Sales from healthy eating options in restaurants reached $78 billion in 2023
- Industry sales in urban areas totaled $512 billion in 2023, 47% national share
- Projected inflation-adjusted sales growth for 2024 is 3.2%
- Total 2023 sales from independent restaurants were $340 billion
Market 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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