Full-Service Restaurants NAICS 722511
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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
Feb 14, 2026 - All-Day Cafes
- The rise of all‑day cafés is reshaping the restaurant industry by offering a flexible, revenue‑diversifying model that helps operators manage high costs, labor challenges, and shifting consumer habits, The New York Times reports. By serving multiple dayparts, often starting as bakeries and transforming into entirely different concepts at night, restaurants can maximize space utilization, attract regulars, and build deeper neighborhood ties. This model boosts profitability through longer operating hours, lower labor needs, and menus that adapt to demand throughout the day. It also gives chefs creative freedom and supports better work‑life balance, making it appealing for industry talent seeking sustainable careers. For the broader restaurant sector, the trend signals a move away from single‑identity, dinner‑centric formats toward hybrid concepts that blend casual accessibility with high culinary ambition, according to NYT. As consumers increasingly value routine, community, and versatility, all‑day cafés offer a resilient blueprint for future restaurant success.
- 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.
- Producer prices for all foods rose 1.3% in November compared to a year ago, after jumping 7.3% in the previous November-versus-November annual comparison, according to the latest US Bureau of Labor Statistics data. Employment by full-service eateries rose 1.6% year over year in November, while the average industry wage rose 5.1% over the same period to $21.44 per hour, easing a bit from its record high in October, BLS data show. Tariffs on imported ingredients and other inputs, along with food and labor cost inflation are driving up menu prices and squeezing restaurant margins.
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
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