Restaurants NAICS 722511, 722513, 722514

Jul 14, 2026 - May’s Mixed Performance

• Restaurant traffic remained mixed in May as consumers became more selective about dining out, according to the May 2026 Placer.ai Dining Index. Full-service restaurants posted year-over-year traffic gains, helped by Mother's Day and a favorable calendar, while visits to quick-service restaurants declined further and fast-casual traffic growth slowed. The report suggests that persistent inflation, tighter household budgets, and elevated fuel prices are weighing on value-oriented dining segments. Drive-thru and other short-duration visits, including pickup and delivery, fell at both quick-service and fast-casual chains, indicating some consumers are cutting back on driving or favoring dine-in experiences over convenience. For restaurants, the findings underscore the growing importance of delivering strong value as consumers become more price sensitive, while lower fuel prices later this summer, if realized, could help revive drive-thru traffic.
• US restaurants and bars shed nearly 33,000 jobs in June 2026, erasing much of the hiring gains made before the summer season, while May's seemingly impressive job growth was revised down by 10,300 jobs, Nation’s Restaurant News reports citing the latest government data. The slowdown reflects weakening restaurant traffic, soft sales, and rising labor costs that are causing operators to limit hiring. Hotels and other leisure and hospitality businesses also reduced staffing, contributing to a weaker overall job market. Restaurant employment has grown at an annual rate of just 0.62% over the past four years, well below the 1.8% average before the pandemic. Operators are also relying more on technology, including mobile ordering, kiosks, and third-party delivery, to improve efficiency and reduce labor needs. Despite major events expected to boost demand, the industry's hiring outlook remains subdued unless customer traffic improves.

• Recent action by the Office of the Comptroller of the Currency (OCC) threatens to increase cost pressures on restaurants by blocking efforts to reduce credit card swipe fees, according to the National Restaurant Association, which strongly opposes the agency’s action and calls on the Trump Administration to retract the rules. The OCC in April moved to invalidate an Illinois law, known as the Illinois Interchange Fee Prohibition Act, that would have lowered swipe fees and proposed rules limiting states from enacting similar measures. Swipe fees, typically 2-4% per transaction, are among the highest operating costs for restaurants and have more than doubled over the past decade. With more than 42% of restaurants unprofitable in 2025, the inability to reduce these fees could further strain margins. Industry groups argue that the ruling strengthens the control of major card networks, limiting competition and keeping fees high nationwide.
• Profits are drying up as alcohol consumption drops, removing a key high-margin revenue stream for restaurants, The New York Times reports. Traditionally, alcohol has generated a large share of restaurant profits, but many operators are reporting a shift toward food-heavy sales, with some eateries experiencing sharp revenue declines or closures. Alcohol sales are down across all restaurant segments, driven by health concerns, generational changes, economic pressure, and the rise of GLP-1 drugs, according to NYT. Younger consumers, especially Gen Z, are drinking less, while older consumers are cutting back. As a result, nearly a third (31%) of operators report severe declines in alcohol sales. Teetotaling diners are creating significant challenges because alcohol is more profitable than food, which has higher labor and ingredient costs. While some restaurants are adding nonalcoholic options or premium, experience-driven drinks, these often do not fully replace lost margins.