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.

Sep 14, 2026 - Americans Are Dining Out More

• A new report from the Bank of America Institute points to a broad improvement in the US restaurant industry in 2026 as consumers dine out more frequently. Restaurant spending rose 3.3% year over year in July, while transactions increased 1.1%, indicating growth is being driven by higher customer traffic as well as rising menu prices. Easing restaurant inflation and faster after-tax wage growth are helping consumers spend more on dining out, with some food spending shifting from grocery stores to restaurants. Lower-income consumers and Gen Z are leading the recovery, with Gen Z restaurant spending rising nearly 7% in July. Independent and regional restaurants also appear to be outperforming many large national chains. Overall, improving traffic and broader consumer participation suggest restaurant demand is strengthening after several years of pressure, per the report.
• Restaurant hiring rebounded sharply in August after two consecutive months of job losses, according to the latest Bureau of Labor Statistics data. Restaurants added 59,000 jobs during the month, a nearly 0.5% increase from July and the strongest job growth rate among major nonfarm industries. The gain was nearly five times the industry's typical monthly increase and well above its average gain of 12,000 jobs over the previous 12 months. August is traditionally a strong hiring period as restaurants replace seasonal workers returning to school and prepare staffing for the fall. The rebound suggests restaurant labor demand remains healthy despite slower hiring across the broader economy. However, stronger employment throughout the economy could increase competition for restaurant workers and put additional pressure on wages and other labor costs, which have risen steeply.
• 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.

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.
• Food and labor costs are the two most significant expenses, each accounting for approximately 33 cents of every dollar in restaurant sales.
• Average menu prices increased 36% between February 2020 and May 2026, according to the Bureau of Labor Statistics.
• In 2025, limited-service restaurants accounted for 36.5% of food-away-from-home spending, full-service restaurants accounted for 34.5%, and other FAFH establishments accounted for 29%.