Full-Service Restaurants NAICS 722511

        Full-Service Restaurants

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Industry Summary

The 224,700 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.


Recent Developments

Jan 14, 2026 - 2026’s Top Menu Trends
  • The three dominant themes forecast to shape US menus in 2026 are comfort, global flavors, and value, according to the National Restaurant Association’s 2026 What’s Hot Culinary Forecast published in late 2025. Based on surveys of hundreds of culinary professionals polled in October, the report shows consumers gravitating toward nostalgic, familiar foods, like smashed burgers, and global influences such as Caribbean curry bowls. Diners are also seeking flavor escapism and blending comfort with adventurous tastes. Not surprisingly, affordability and wellness remain central, driving interest in value menu options, protein‑packed meals, and low‑alcohol beverages. These trends reflect a broader desire for satisfying, approachable dishes that still feel fresh and globally inspired. For operators, the forecast signals strong demand for menu items that balance comfort, creativity, and cost‑consciousness heading into the new year. Allergen-friendly menus, ingredient transparency, and compostable/reusable packaging are other trends for 2026, per NRA.
  • Rising minimum wages in 19 states starting this month will provide a pay hike to an estimated 8.3 million workers, The Wall Street Journal reports. The increases will significantly raise labor costs for the restaurant industry, where wages make up a large share of operating expenses. Washington’s new $17.13 rate and local increases such as Los Angeles’ upcoming $30 wage for hotel and airport workers illustrate how quickly labor floors are rising in major dining markets. These increases will pressure restaurants to adjust menus, raise prices, reduce hours, or adopt more automation to offset higher payroll costs. Economists note that restaurants often have limited ability to absorb wage hikes, which can slow hiring. With more states moving toward $15-plus minimums and consumers still sensitive to price increases, restaurants face a challenging balancing act between maintaining margins and retaining staff in a tightening labor environment.
  • A merger that would have created the nation’s largest broadline distributor for restaurants and other foodservice providers has been called off, Supermarket News reports. US Foods and Performance Food Group (PFG), the US’s second and third largest distributors by revenue (behind Sysco) ended an information-sharing process begun earlier this year in anticipation of merging. The two companies, in consultation with independent financial and legal advisors, said they mutually decided to end merger talks after a review of the benefits of a combination along with regulatory concerns, according to a statement. Winning the approval of regulators was a major issue looming over the deal. A decade ago, federal antitrust regulators blocked a planned merger of Sysco and US Foods. Restaurants, especially independent and smaller operators, tend to be wary of such consolidation because it can reduce competition, limit supplier choice, and put upward pressure on prices.
  • While food safety breaches that trigger recalls don’t typically originate at the restaurant-level, recalls can affect businesses throughout the supply chain, from the farm that grew the food to the restaurants that serve it, FSR reports. According to government data, food recalls increased by 15% between 2020 and 2024. With recalls on the rise, restaurants can reduce disruption by building strong preparation, communication, and traceability systems. The biggest challenge during a recall is obtaining accurate, complete information quickly, so operators should establish clear protocols with suppliers for how recall details will be shared. Restaurants should define the problem precisely, identifying affected products, locations, and risks, before communicating publicly. Each location needs designated decision‑makers who can pull a product even before an official recall is issued. Traceability and recall‑management tools help track product movement, speed retrieval, and reduce confusion. Lastly, restaurants should document every step and conduct post-recall reviews to strengthen future responses.

Industry Revenue

Full-Service Restaurants


Industry Structure

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 224,700 firms that employ about $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.

                              Industry Forecast

                              Industry Forecast
                              Full-Service Restaurants Industry Growth
                              Source: Vertical IQ and Inforum

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