Restaurants NAICS 722511, 722513, 722514
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Industry Summary
The 436,000 restaurant companies in the US include full-service restaurants, quick-service restaurants (fast food, snack and non-alcoholic beverage bars), fast-casual restaurants, grills, buffets, and cafeterias. Franchise restaurants are individually owned and operated and benefit from marketing and operational assistance provided by a franchisor.
Competition For The Food Dollar
While the restaurant industry is highly competitive, eating establishments also compete with convenience stores, grocery stores, warehouse clubs, and home cooking.
Emphasizing Health and Sustainability
Increasing consumer concern for health and the environment has led to growing demand for healthier and more sustainable restaurant menu options.
Recent Developments
Feb 14, 2026 - All-Day Cafes
- The rise of all‑day cafés is reshaping the restaurant industry by offering a flexible, revenue‑diversifying model that helps operators manage high costs, labor challenges, and shifting consumer habits, The New York Times reports. By serving multiple dayparts, often starting as bakeries and transforming into entirely different concepts at night, restaurants can maximize space utilization, attract regulars, and build deeper neighborhood ties. This model boosts profitability through longer operating hours, lower labor needs, and menus that adapt to demand throughout the day. It also gives chefs creative freedom and supports better work‑life balance, making it appealing for industry talent seeking sustainable careers. For the broader restaurant sector, the trend signals a move away from single‑identity, dinner‑centric formats toward hybrid concepts that blend casual accessibility with high culinary ambition, according to NYT. As consumers increasingly value routine, community, and versatility, all‑day cafés offer a resilient blueprint for future restaurant success.
- Restaurants are leaning heavily into high‑protein menu innovation as a strategy to regain traffic and appeal to health‑focused consumers, especially those using GLP‑1 weight‑loss drugs, The Wall Street Journal reports. Chains across the fast casual, QSR, coffee, and burger segments are launching protein‑centric items such as chicken cups, protein‑infused dough, “protein pockets,” high‑protein milk drinks, and lettuce‑wrapped burgers. This shift helps restaurants tap into a fast‑growing consumer priority while justifying premium pricing on protein add‑ons. Because many offerings are simply re‑framed existing items, the trend provides a low‑risk, high‑margin way to drive visits. Operators are also using protein messaging to position themselves as better value, offering bowls or meat‑heavy options without bread or grains. While analysts question the trend’s longevity, protein‑forward innovation is currently one of the few levers helping restaurants attract health‑minded diners and differentiate in today’s competitive, price‑sensitive market, according to WSJ.
- Rising minimum wages in 19 states starting this month will provide a pay hike to an estimated 8.3 million workers, The Wall Street Journal reports. The increases will significantly raise labor costs for the restaurant industry, where wages make up a large share of operating expenses. Washington’s new $17.13 rate and local increases such as Los Angeles’ upcoming $30 wage for hotel and airport workers illustrate how quickly labor floors are rising in major dining markets. These increases will pressure restaurants to adjust menus, raise prices, reduce hours, or adopt more automation to offset higher payroll costs. Economists note that restaurants often have limited ability to absorb wage hikes, which can slow hiring. With more states moving toward $15-plus minimums and consumers still sensitive to price increases, restaurants face a challenging balancing act between maintaining margins and retaining staff in a tightening labor environment.
- Sales growth by pizza chains is lagging other formats, The Wall Street Journal reports. Once the second-most common US restaurant type, today pizzerias are outnumbered by coffee shops and Mexican food eateries, according to industry data cited by WSJ. Rising prices have made a $20 pizza feel less competitive against cheaper fast‑food bundles, frozen options, or home cooking, intensifying price wars among chains. Stagnation has led to bankruptcies at several regional pizza brands and strategic upheaval at major players like Pizza Hut and Papa John’s, which are exploring sales, closing stores, or overhauling operations, per WSJ. Domino’s is gaining share through aggressive value deals, while dine‑in pizza formats struggle with high operating costs. To stay relevant, chains are focusing on menu upgrades, operational consistency, and brand refreshes. The trend highlights a broader industry challenge: consumers are becoming more selective, pushing restaurants to compete harder on value, quality, and variety.
Industry Revenue
Restaurants
Industry Structure
Industry size & Structure
A typical restaurant operates out of a single location, employs about 22 workers, and generates $1-2 million annually.
- The restaurant industry consists of about 436,800 companies which employ 9.7 million workers and generate almost $800 billion annually.
- The industry includes full-service restaurants, quick-service restaurants (fast food, snack and non-alcoholic beverage bars), fast-casual restaurants, grills, buffets, and cafeterias. Food service contractors, bars that serve mainly alcoholic beverages, mobile food services, and caterers are not included.
- Franchise restaurants are individually owned and operated and benefit from a recognizable brand name, corporate marketing, volume purchasing, and operational assistance provided by a franchisor.
- Restaurants may specialize by type of fare (Mexican, Chinese), dish (hamburgers, sushi), item (cookies, ice cream), or meal (breakfast, lunch, dinner).
- Large restaurant companies include McDonald's, Subway, Burger King, Wendy's, Golden Corral, Ruby Tuesday, DineEquity (Applebees) and Starbucks.
Industry Forecast
Industry Forecast
Restaurants Industry Growth
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