Restaurants

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.

Aug 14, 2026 - Outbreak Pressures Restaurant Sales, Traffic

• A multistate Cyclospora outbreak linked to shredded iceberg lettuce that has sickened thousands has created significant challenges for restaurants by reducing customer traffic and increasing food costs, AP News reports. Taco Bell's US same-store sales fell 2% early in the July-September quarter after the outbreak, prompting the chain to remove affected lettuce and launch promotions to rebuild customer confidence. Other restaurant chains, including Chipotle, Chopt, and Sweetgreen, also reported weaker traffic or reduced sales expectations despite not being directly linked to the outbreak. The incident comes as restaurants are already coping with sharply higher lettuce prices caused by weather-related supply shortages and rising transportation costs. The outbreak underscores the financial risks foodborne illness poses to restaurants, including lost sales, higher ingredient costs, supply chain disruptions, and the need for stronger food safety, traceability, and crisis communication efforts.
• Restaurants remain the top driver of summer travel spending, according to the National Restaurant Association's 2026 Summer Travel and Dining report. More than half (55%) of consumers surveyed said they plan to take at least one overnight domestic trip this summer, and 98% of those travelers expect to visit a restaurant, making dining the most popular vacation activity, per NRA's report. Travelers also plan to dine in (93%), use takeout, delivery, or drive-thru (90%), and visit coffee shops or snack outlets (84%). Restaurants receive about $3 of every $10 spent by travelers, underscoring the hospitality sector's reliance on tourism. Affordability remains a priority, with 90% of travelers citing value and convenient locations as key factors and 70% seeking discounts or promotions. Hotels and restaurants in tourist destinations stand to benefit from strong travel demand but may need competitive pricing to attract cost-conscious visitors.
• 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.

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.