Limited-Service Restaurants NAICS 722513

        Limited-Service Restaurants

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Industry Summary

The 159,000 limited-service restaurants in the US offer counter service, a practice in which patrons order food and beverage and pay before eating. Food and beverages may be consumed on-premise, taken out, or delivered. Franchises, like McDonald’s and Subway, are ubiquitous in the limited-service restaurant industry and provide independent owners with a well-known brand name and operational and marketing support.

Competition from Alternative Meal Sources

Limited-service restaurants face competition from various alternative sources, including full-service restaurants, prepared foods, specialty food and beverage retailers, and home cooking.

Junk Food Reputation

Fast food (aka "junk food") has a reputation for being unhealthy, an image that runs counter to the consumer trend toward more nutritious eating.


Recent Developments

Dec 14, 2025 - Rise in Solo Dining
  • More people are opting out of group meals in favor of dining alone, according to Yum! Brands' new food trends report. The report found that solo orders have increased 52% since 2021, to make up nearly half (47%) of all dining occasions at quick service restaurants (QSR), compared to 31% in 2021. Moreover, 68% of solo diners choose not to take advantage of a deal and over half spend $10–$30 or more during a visit, suggesting diners are willing to pay more when dining alone. As a result, foods once meant for social gatherings, like pizza, are being redesigned for solo diners (personal pizzas), reflecting a shift toward food that matches individual identity and mood, per the report. Yum! Brand's research also shows that 24% of solo diners are dining out to satisfy a craving.
  • A look ahead to 2026 at November’s Restaurant Finance & Development Conference forecasts the bifurcated restaurant market that emerged in 2025 will persist next year, exacerbated by ongoing economic uncertainty, Restaurant Dive reports. The most recent restaurant earnings season saw a stark divide between consumer segments that are still spending liberally, and those that have pulled back on discretionary expenditures. As consumer spending diverges, brands that deliver clear value or appeal to higher-income diners are outperforming those reliant on more price‑sensitive segments. Restaurants with weak value perception are seeing traffic decline, while chains that balance everyday value with quality are reporting stronger sales and margins. Intense competition around the $10–$12 price point means operators must sharpen pricing strategies and control costs to capture value‑oriented diners, said restaurant executives, adding that brands that stay focused on core operational excellence rather than over‑investing in tech experimentation are better positioned to retain customers.
  • International restaurant chains are coming to America, infusing the restaurant sector with fresh tastes, Nation’s Restaurant News reports. While it may seem like an unlikely time to test a US market beset with rising labor and food costs and shrinking consumer spending, foreign chains view the move as a kind of stress test and validation for their brands, according to NRN. The sector is seeing especially strong momentum from Asian brands, Chinese and Korean in particular, importing bold formats that feel fresh in the US but are mature at home. For example, Lotteria, one of the most famous South Korean quick-service chains, brought its shrimp burgers and shaker fries to California for the first time this year. Another newcomer is Canada’s Big Way Hot Pot, which opened its first four US locations in Los Angeles this summer and is planning to add at least 10 more nationally, per NRN.
  • Younger consumers are cutting back on spending, with restaurants among the first to feel the impact, two new studies show. According to the semi-annual Taking Stock with Teens survey, teens’ annual spending has declined by 6% year-over-year and is 1% below the average spending levels from the past 10 years. Also, research from investment bank TD Cowen finds that consumers ages 18-34 are under more pressure than the average consumer. The pullback among younger consumers, who make up about 40% of all restaurant guests, has major implications for the industry, especially the fast-casual segment, which relies heavily on younger guests. Restaurants are attempting to “future proof” their positioning by rebranding or launching youth-focused loyalty, digital, or campus initiatives to maintain engagement with younger audiences. Operators may need to rethink marketing, menu pricing/value tiers, loyalty incentives, and targeting to shore up revenue during lean times.

Industry Revenue

Limited-Service Restaurants


Industry Structure

Industry size & Structure

The average limited-service restaurant employs about 30 workers and generates about $2.3 million annually.

    • The limited-service restaurant industry consists of about 159,000 firms that employ between 4 million and 5 million workers and generates over $367 billion annually.
    • The limited-service restaurant industry includes chains, franchises, and independent operators. Large franchises include McDonald’s, Taco Bell, Burger King, Subway, and Panera Bread. Large chains include Chick-fil-A, Chipotle, and Panda Express. The largest firms have an international presence.
    • Limited-service restaurants accounted for 34.6% of food-away-from-home expenditures in 2010 and peaked at 37.6% in 2020. They continued to capture the largest share of food-away-from-home spending through 2024.
    • Between 1997 and 2022, spending at limited-service restaurants increased by over 300% from $112 billion to $468 billion.
    • Quick-service restaurants (aka fast-food restaurants) accounted for 88% of limited-service operator sales in 2024, compared to just 12% for fast casual chain restaurants.
    • About 80% of fast-food chain's restaurants are franchised.

                              Industry Forecast

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

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