Restaurants NAICS 722511, 722513, 722514

        Restaurants

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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

Dec 14, 2025 - 2026’s Top Menu Trends
  • The three dominant themes forecast to shape US menus in 2026 are comfort, global flavors, and value, according to the National Restaurant Association’s 2026 What’s Hot Culinary Forecast published in November. Based on surveys of hundreds of culinary professionals polled in October, the report shows consumers gravitating toward nostalgic, familiar foods, like smashed burgers, and global influences such as Caribbean curry bowls. Diners are also seeking flavor escapism and blending comfort with adventurous tastes. Not surprisingly, affordability and wellness remain central, driving interest in value menu options, protein‑packed meals, and low‑alcohol beverages. These trends reflect a broader desire for satisfying, approachable dishes that still feel fresh and globally inspired. For operators, the forecast signals strong demand for menu items that balance comfort, creativity, and cost‑consciousness heading into the new year. Allergen-friendly menus, ingredient transparency, and compostable/reusable packaging are other trends for 2026, per NRA.
  • 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, restaurant executives said, adding that brands that stay focused on core operational excellence rather than over‑investing in tech experimentation are better positioned to retain customers.
  • Restaurant operators increasingly are turning to social media channels to evaluate and purchase technology, according to Belle Communication’s 2026 Evolving State of Foodservice report. The report, which gathered input from a panel of industry experts, Food Network chefs, and award-winning operators, found that rather than relying solely on distributor recommendations or sales reps, busy restaurant operators are increasingly researching tools via Instagram posts, chef endorsements, peer reviews, and online content first. Moreover, food service buyers now consult 8-9 sources before engaging a vendor, nearly twice what they did just a few years ago. Decision-making is becoming more fragmented, faster, and self-led, so independent operators and chains alike must be proactive in sourcing tech, vetting solutions via digital channels, and prioritizing brands that demonstrate peer-based validation and ease-of-integration. Like other consumers, restaurant operators are researching products online before consulting vendors and relying on fellow chefs and peers for product advice.
  • 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

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
                                  Source: Vertical IQ and Inforum

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