Limited-Service Restaurants NAICS 722513

Aug 14, 2025 - Restaurant Job Growth Stalls

• Restaurant industry job growth ground to a halt in June and July, as a rise in people quitting offset hiring activity, the National Restaurant Association reported in August. According to preliminary data from the Bureau of Labor Statistics, employment levels at eating and drinking places were essentially flat in June (+400 jobs) and July (-300). That followed a 3-month period in which the industry added nearly 68,000 jobs. The number of workers quitting their jobs (aka separations) in recent months has risen. There were 823,000 total separations in the restaurants and accommodations sector in June, the second consecutive month with readings above 800,000, according to the BLS. Within the restaurant industry, the limited-service segment – which includes coffee, donut, and ice cream shops – continues to lead the way in terms of job growth.
• Consumer spending at small restaurants slowed in June versus May, according to new data from fintech company Fiserv, Nation’s Restaurant News reports. Fiserv’s Small Business Index shows that while small restaurants/independents experienced modest 0.4% year-over-year sales growth in June, month-over-month transactions declined by 2.6% and foot traffic dropped 2.5%. June’s negative monthly comparison followed a 5.6% month-over-month drop from April to May. Just 13 states experienced a positive performance in food service and drinking places in June, versus 34 in May. The spending slowdown signals caution for the restaurant industry where traffic, sales, and hiring trends have been mixed so far this year,” according to the National Restaurant Association’s Economic Outlook for mid-2025. The association’s cautious outlook is supported by recent surveys from PopMenu and KPMG indicating that consumers plan to pull back on their restaurant spending amid ongoing economic concerns.

• The first quarter of 2025 marked one of the worst quarters that restaurant chains experienced since the onset of the COVID-19 pandemic, Restaurant Dive reported in May, citing widespread declines in same-store-sales at major restaurant chains. Major publicly-traded quick service restaurants experiencing declines in Q1 same-store-sales included McDonald's, KFC, Burger King, Popeyes, and Wendy’s. The lone exception was Taco Bell which saw a 9% jump in comparable sales in Q1, defying the downward trend thanks to an aggressive value strategy and new premium dishes, according to a Restaurant Dive analysis of first quarter earnings reports. An examination of pizza delivery chains turned up similar results, with Q1 same-store-sales down at Domino’s, Papa John’s, and Pizza Hut. Customer visits and sales are declining as consumers rein in spending. Starbucks saw comparable sales fall in Q1 for the fifth consecutive quarter.
• Employment by limited-service restaurants inched up 0.6% in May compared to a year ago, while the average industry wage rose 2.9% over the same period to a new high of $16.68 per hour, according to the latest US Bureau of Labor Statistics data. Employment and wages at limited-service restaurants were both at record highs for the month. The industry’s rising labor costs are supported by sustained consumer spending, which rose 2.6% YoY and 0.3% month over month in June, according to the Bureau of Economic Analysis.