Restaurants NAICS 722511, 722513, 722514

Apr 14, 2026 - Dinner But No Drinks

• Restaurants profits are drying up as alcohol consumption drops, removing a key high-margin revenue stream, 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.
• 2026 will be a year of modest growth but continued margin pressure for restaurants, with total restaurant and foodservice sales projected to reach $1.55 trillion and jobs added to total more than 100,000, according to the National Restaurant Association’s 2026 State of the Restaurant Industry report published in February. Cost pressures will remain a top challenge with more than 9 in 10 operators citing persistent food, labor, insurance, energy, and swipe fees as major constraints on margins. Consumer demand is forecast to be solid but constrained, especially among lower‑ and middle‑income households, with Gen Z and millennials continuing to drive off‑premises growth, although with overall limited spending power. Hiring will remain difficult, especially recruiting experienced managers and chefs. To manage labor gaps and control costs, technology adoption, including AI ordering, digital payments, loyalty, automation, and analytics, will be essential.

• American snacking habits are reshaping the restaurant industry by shifting demand away from traditional meals and toward small, flexible, lower‑priced items that fit into off‑hour eating, The Atlantic reports. This change, driven by inflation, GLP‑1 drugs, remote work, and younger consumers’ preference for “intentional indulgences”, is pushing operators to rethink menus, formats, and daypart strategy. The fastest‑growing US brands are cafés, dessert shops, and drink‑forward concepts such as 7 Brew, Swig, and Tous les Jours. Their success shows that beverages and small treats now anchor demand. Traditional chains are shrinking portions and prices. McDonald’s, Sonic, Popeyes, and Chipotle are rolling out wraps, tacos, and protein cups under $4 to capture snack‑time traffic and appeal to health‑minded consumers ordering smaller portions. Even sit‑down restaurants are expanding snackable offerings with TGI Fridays adding sampler platters and all‑ages “kids’ menu” items to fit any daypart.
• Employment by restaurants grew 1.7% in January compared to a year ago, while the average industry wage increased 3.9% over the same period to $19.36 per hour, easing slightly from its peak in December, according to the latest US Bureau of Labor Statistics data. Employment growth and wage inflation, fueled by rising minimum wages in 19 states beginning in January, are driving up payroll costs for restaurant operators. Sales for the US restaurants industry are forecast to grow at a 5.13% compounded annual rate from 2026 to 2030, faster than the growth of the overall economy, according to the most recent forecast from the Interindustry Economic Research Fund, Inc.