Full-Service Restaurants

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.

Aug 14, 2026 - Prioritizing Foundational Tech over AI

• 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.
• Full-service restaurants are facing growing operational challenges due to a severe shortage of dishwashers, a critical but hard-to-fill role, The Wall Street Journal reports. Stricter immigration enforcement by the Trump administration is reducing the available labor pool, while fewer young workers are willing to take these low-paying, physically demanding jobs. As a result, many restaurants are struggling to maintain adequate staffing levels for essential kitchen support. A survey by the National Restaurant Association found that 54% of sit-down restaurants had fewer-than-average applicants for kitchen-support positions last year. The shortage is increasing labor costs, as operators raise wages, offer incentives, or share tips to attract and retain workers. High turnover, already a persistent issue, further adds to hiring and training expenses. To cope, some restaurants are turning to automation, such as robotic dishwashers, to offset labor gaps.
• Producer prices for all foods stayed flat in June compared to a year ago, after rising 4.5% in the previous June-to-June annual comparison, according to the latest US Bureau of Labor Statistics data. Despite the flat comparison, producer prices remain at near historical highs: In June, the Producer Price Index for All Foods stood 20% above that of five years ago. Employment by full-service restaurants grew 1.8% year over year in May, while the average industry wage increased 5.5% over the same period to a new high of $22.41 per hour, BLS data show. Tariffs on imported ingredients, equipment, and other inputs, along with food and labor cost inflation, are driving up menu prices and squeezing restaurant margins.

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.