Full-Service Restaurants

The 258,626 full-service restaurants in the US provide food services to patrons who order and are served by waitstaff while seated and pay after eating, a practice known as “table service.” Firms may also offer catering services, food and beverage for off-premise consumption, and non-theatrical entertainment. The full-service restaurant industry includes chains, franchises, and independent operators.

Uneven Demand

Customer traffic at full-service restaurant can vary by day of the week and time of day.

High Turnover

Full-service restaurant operations are labor intensive, and the quality of service is highly dependent on staff.

Sep 14, 2026 - Rising Restaurant Spending

• Full-service restaurants are benefiting from improving consumer spending in 2026, although performance varies by operator and customer group, according to a new report from Bank of America (BoA). BoA card data shows overall restaurant spending rose 3.3% year over year in July, while transactions increased 1.1%, suggesting more consumers are dining out rather than growth coming solely from higher prices. Casual dining spending also improved, with growth among lower-, middle- and higher-income households. Younger consumers are an important growth driver, with Gen Z restaurant spending rising nearly 7% year over year. Independent and regional restaurants appear to be outperforming many large national chains, potentially benefiting locally owned full-service establishments. Easing restaurant inflation and stronger after-tax wage growth may further support consumers' willingness to dine out.
• The turnaround at Chili's suggests that restaurants may benefit more from investing in core technology than rushing to adopt artificial intelligence, The Wall Street Journal reports. Chili's owner Brinker International has driven 20 consecutive quarters of same-store sales growth by upgrading Wi-Fi networks, payment systems, kitchen displays, and employee devices while improving food quality, service, and marketing, according to WSJ. Rather than deploying robot servers or broadly adopting generative AI, the company is taking a selective approach, testing AI primarily for back-office functions such as inventory forecasting. The strategy indicates that many full-service restaurants may achieve higher returns by modernizing foundational technology that improves guest experience and operational efficiency before investing heavily in emerging AI applications, which have yet to demonstrate broad customer or financial benefits in the restaurant industry.
• Full-service restaurants, particularly those in seasonal tourist destinations, may face a tighter labor market this summer as the pool of available seasonal workers shrinks, Restaurant Dive reports. The National Restaurant Association expects restaurants to add about 450,000 summer jobs in 2026, down 4% from last year, citing 200,000 fewer teenagers in the labor force and a slight decline in workers ages 20 to 24. Restaurants in coastal and other seasonal markets could struggle to fill positions, leading to higher wages, increased turnover, and rising hiring costs. Labor shortages may put additional pressure on already thin margins and make it more difficult to maintain service levels during the busy summer season, especially in states with the largest seasonal increases in restaurant employment. Maine, by far, hires the most seasonal workers, followed by Alaska, Rhode Island, Delaware, Massachusetts, New Hampshire, and New Jersey.
• Producer prices for all foods fell 2.1% year over year in July and dropped 1.2% from June, the largest monthly decline since January, according to the US Bureau of Labor Statistics (BLS). Lower wholesale food prices were largely driven by sharp declines in several major commodities, including fresh vegetables, which plunged 40.1% from June, as well as beef and veal, and pork. Meanwhile, employment at full-service restaurants grew 2% YoY in June. Average industry wages increased 5% to $22.15 per hour over the same period, although wages eased from their May high, according to the BLS.

Industry size & Structure

The average full-service restaurant operates out of a single location, employs about 24 workers, and generates nearly $2 million annually.

• The full-service restaurant industry consists of about 258,626 firms that employ more than $5.4 million workers and generate about $424.4 billion annually.
• The industry is highly fragmented; the top 50 companies account for 15% of industry revenue.
• The full-service restaurant industry includes chains, franchises, and independent operators. The largest chains include Olive Garden, Buffalo Wild Wings, and Chili’s. The largest franchises include Denny’s, IHOP, and Applebee’s. Larger firms may operate both company-owned and franchised locations.
• Food and labor costs are the two most significant expenses, each accounting for approximately 33 cents of every dollar in restaurant sales.
• Average menu prices increased 36% between February 2020 and May 2026, according to the Bureau of Labor Statistics.