Limited-Service Restaurants NAICS 722513

May 14, 2025 - Off-Premise Sales Growth

• According to the National Restaurant Association’s 2025 Off-Premises Restaurant Trends report nearly 75% of all restaurant traffic now occurs off-premises through takeout, delivery, or drive-thru. “Off-premises dining has become a key revenue driver and an essential way to engage consumers,” said the NRA’s chief economist Dr. Chad Moutray, adding “It now accounts for a larger share of sales for 58% of limited-service operators compared with 2019.” Nearly two-thirds (65%) of limited-service operators now offer delivery, with many expecting curbside and dedicated takeout areas to become even more common this year. Two-thirds of Gen Z and millennials say takeout is essential to their lifestyle, and nearly 6 in 10 use takeout or drive-thru at least weekly. Also, more than 60% say they’re ordering off-premises more often than a year ago, per the NRA report. Three-quarters of delivery customers say they value tech-enabled ordering and payments to speed transactions.
• Restaurants added a net 16,600 jobs in April, according to preliminary data from US Bureau of Labor Statistics. The job gains came despite rising uncertainty that have kept consumers from visiting restaurants as frequently. (In April, industry bellwether McDonald’s reported a 3.6% year-over-year decline in first quarter same-store sales, citing reduced spending by low-income consumers.) April marked the second straight month for restaurant job gains, following about 30,000 new jobs added in March, and a rebound from a job loss of 28,300 in February and 27,000 in January — the weakest two-month period for the industry in more than four years, according to the National Restaurant Association. Limited-service restaurants continue to post the strongest job growth, led by coffee and snack concepts, up more than 20% versus March 2020. Quick-service and fast-casual concepts are about 2.4% above pre-pandemic readings.

• The dramatic drop in consumer confidence is expected to cause diners to pull back on spending, presenting restaurants with ongoing challenges amid a deteriorating economic landscape, Nation’s Restaurant News reports. In April, consumer confidence plunged according to the University of Michigan's consumer confidence index, which fell 11% for the month and is down 30% over the past five months as consumers in the US have grown increasingly pessimistic about the prospects for unemployment and worried about inflation. Restaurants rely on discretionary spending. When consumers feel stressed they skip dining out and eat at home instead. The U of M survey shows that Trump’s tariff pronouncements, along with the severe reaction of the stock and bond markets, are taking their toll on US consumers.
• The Trump administration’s deportation sweeps are a threat to workers and restaurant operators, Restaurant Business reports. The restaurant industry is the largest employer of immigrants, according to the labor activist nonprofit One Fair Wage. Moreover, in cities like New York, Chicago, and Los Angeles, up to 70% of restaurant workers are foreign born, and an estimated 40% aren’t legally authorized to work. Many restaurant workers who lack legal status are afraid to go to work for fear of being deported, boosting absenteeism. “Restaurant workers and immigrant service workers are the backbone of the American economy, yet they are being targeted, vilified, and left without the support they desperately need,” said Saru Jayaraman, president of One Fair Wage. To support immigrant workers, Jayaraman’s organization has launched the Service Workers’ Emergency Relief Fund to offer immediate financial assistance and legal support to restaurant workers caught up in the sweeps.