Running a successful restaurant is a dream many Americans share. You can imagine how great it would be to be your own boss, have the freedom to choose your working hours and employees, and, of course, make good money as a hot-shot restaurateur. Unfortunately, the reality of running a restaurant business isn\u2019t quite as peachy.<\/p>\n\n\n\n
We\u2019ve compiled this list of restaurant industry statistics to paint a realistic picture of what it\u2019s like to run your own eatery. In it, you\u2019ll find the answers to the questions you\u2019ve probably been asking yourself if you\u2019re seriously considering opening a place of your own. What\u2019s the average lifespan of a restaurant? How much does a restaurant owner make? With such a high number of restaurants in the US, how can I succeed?<\/p>\n\n\n\n
Read on to find out.<\/p>\n\n\n\n
(National Restaurant Association)<\/p>\n\n\n\n
How many restaurants are there in the US? According to a 2020 report by the National Restaurant Association, more than 1 million restaurants open their doors to the hungry public on a daily basis. With such an abundance, diners can choose from a wide selection of establishments, from high-end steakhouses to more affordable restaurant buffets, sandwich bars, taverns, and fast food places.<\/p>\n\n\n\n
(US Bureau of Labor Statistics, National Restaurant Association)<\/p>\n\n\n\n
The latest data shows that there are more than 9 million people working in eateries across the USA, but this is a decline from previous years: In February 2020, this number reached 12.3 million, before the pandemic hit. Up until then, restaurant industry growth has been steady this decade, with the number of staff increasing by approximately 300,000 each year since 2011 when the industry workforce numbered 9.5 million people.<\/p>\n\n\n\n
(National Restaurant Association)<\/p>\n\n\n\n
Did you know that the National Restaurant Association expects the number of employees is going to reach a whopping 17.2 million by 2030? That\u2019s an increase of more than 7 million employees over ten years!<\/p>\n\n\n\n
(National Restaurant Association)<\/p>\n\n\n\n
The US restaurant industry appreciates people with experience. In fact, eight in ten restaurant managers worked their way up from low-level restaurant jobs. Having spent years in various positions learning how different aspects of a restaurant work, employees who have previously worked in the industry have a serious advantage over candidates from other walks of life in a job interview for a management position.<\/p>\n\n\n\n
(National Restaurant Association, Statista)<\/p>\n\n\n\n
The National Restaurant Association\u2019s 2020 report reveals that an overwhelming majority of US restaurants employ fewer than 50 workers. Other, bigger players in the industry include franchise and chain restaurants, which employ far greater numbers of people. According to Statista, in 2019, approximately 3.88 million people were employed by franchise businesses.<\/p>\n\n\n\n
(National Restaurant Association)<\/p>\n\n\n\n
This restaurant statistic shows that most restaurants have only one location and fall into the small business category. The fact that most establishments exist in only one place and are run by small entrepreneurs is exactly what makes them so enticing to aspiring businesspeople.<\/p>\n\n\n\n
(TTRA)<\/p>\n\n\n\n
According to data by the Travel and Tourism Research Association, more than 170 million Americans visited some type of eatery per day in 2018.<\/p>\n\n\n\n
(National Restaurant Association)<\/p>\n\n\n\n
The full-service restaurant industry refers to restaurants that employ waiters and collect the bill after you finish eating. The industry\u2019s total sales have tripled over the last 25 years, but 2020 saw its sales fall by 30%, to just under $200 billion.<\/p>\n\n\n\n
(Statista)<\/p>\n\n\n\n
The restaurant performance index, which tracks the health and outlook of the restaurant industry, fell by 0.8% from October 2020 to 97.5 in November, as another wave of the pandemic hit the country.<\/p>\n\n\n\n
(Upserve)<\/p>\n\n\n\n
In 2021, restaurants without an online presence might as well be non-existent. Online reviews and ratings from previous visitors<\/a> help modern diners choose where to eat from the millions of restaurants out there. It\u2019s vital to get your establishment listed on Yelp, Trip Advisor, Google, and Facebook. Setting up an Instagram account where you can showcase your delicious dishes is also a great idea. But, of course, keeping your customers happy is the most important thing of all.<\/p>\n\n\n\n (Upserve)<\/p>\n\n\n\n What your guests say about your restaurant can make or break your business. Upserve\u2019s online review statistics show that a third of diners read about other visitors\u2019 dining experience in a restaurant and make a decision about whether to eat there accordingly. Nowadays, people trust online reviews as much as they trust recommendations from friends.<\/p>\n\n\n\n (Toast)<\/p>\n\n\n\n At the moment, Facebook is the most prominent social network for advertising a food business, with 91% of restaurateurs using it to attract new customers. From 2018 to 2019, Instagram use from restaurants more than tripled, rising from 24% to 78%. Geotagging and the possibility of sharing pictures of meals instead of written comments are quickly making Instagram the go-to social network for restaurant reviews.<\/p>\n\n\n\n (Business Wire)<\/p>\n\n\n\n A restaurant industry analysis conducted by Business Wire confirms the key role of hygiene in the food industry. If you don\u2019t pay enough attention to cleanliness, you may earn your restaurant a highly detrimental negative review, which has the potential to drive away three-quarters of potential customers.<\/p>\n\n\n\n (Harvard Business School)<\/p>\n\n\n\n In the 15 years Yelp has been around, it has become one of the go-to websites people consult before deciding where to eat. Restaurant social media statistics show that an extra star on this platform translates into an increase in revenue of between 5% and 9%. With this much profit on the line, it\u2019s no surprise Yelp has been involved in a number of lawsuits by restaurant operators who feel they\u2019ve been given undeservedly low ratings.<\/p>\n\n\n\n (ReviewTrackers)<\/p>\n\n\n\n Online reviews have a huge effect on how well a restaurant business does, but not every customer is going to leave one. Still, restaurants statistics compiled by ReviewTrackers show that a good experience makes customers more likely to leave a review about an establishment after they eat there.<\/p>\n\n\n\n (Upserve)<\/p>\n\n\n\n Before the era of widespread internet access, a positive critic review was a huge boost for any restaurant. However, those days are behind us as the majority of modern diners trust the reviews of everyday people more than ones written by professional foodies. They also seek those reviews out on multiple platforms, making it even harder for business operators to gain their trust.<\/p>\n\n\n\n (Upserve)<\/p>\n\n\n\n Recently published restaurant review statistics reveal that a third of US diners deem restaurants with lower than a four-star rating unworthy of a visit. This is yet another reminder of the strong influence reviews have on the success of modern eateries.<\/p>\n\n\n\n (Bright Local)<\/p>\n\n\n\n According to Bright Local, consumers put as much trust in online reviews as they do in personal recommendations. A staggering 79% of people don\u2019t differentiate whatsoever between the judgment of a close friend or family member and a stranger online.<\/p>\n\n\n\n (Bright Local)<\/p>\n\n\n\n Bright Local\u2019s restaurant industry statistics reveal that time is an important factor for consumers when reading online reviews. Almost half of restaurant-goers consider only those reviews left in the past two weeks to be relevant, meaning that a few bad recent reviews have the power to undo months or even years worth of positive ones.<\/p>\n\n\n\n (Restaurant Business)<\/p>\n\n\n\n The internet has transformed our lives in countless ways. How we learn about food is definitely one of them. Reading blogs, scrolling through social media, and checking review apps is how 61% of consumers learn about new trends in food and discover new restaurants.<\/p>\n\n\n\n (Social Media Today)<\/p>\n\n\n\n Dining-out statistics published by Fundera indicate that more than two-thirds of millennials eating out take pictures of their meal to post to their social media. They prefer to share these images over Instagram and Facebook. The ever-growing need for people to share everything about their lives can help you promote your business.<\/p>\n\n\n\n (US Bureau of Labor Statistics)<\/p>\n\n\n\n As of January 2021, the hospitality industry employs almost 3.8% of the US labor force. It may not sound like a lot, but let\u2019s remember, that\u2019s almost 10 million people, and were it not for the pandemic, it would be many more. It\u2019s not just chefs and waiters; dishwashers, short-order cooks, prep cooks, line cooks, pastry chefs, bussers, servers, food runners, bartenders, wine stewards, kitchen managers, restaurant managers, hosts, and cashiers all contribute to restaurants running smoothly.<\/p>\n\n\n\n (National Restaurant Association)<\/p>\n\n\n\n Restaurant industry stats published by the National Restaurant Association revealed that nearly 60% of American adults have some work experience in the industry. With an abundance of restaurants, diners, canteens, pizza joints, and drive-ins across the country and minimum requirements for most positions, it comes as no surprise that so many people have tried their hand at serving tables or preparing food.<\/p>\n\n\n\n (Toast)<\/p>\n\n\n\n According to Toast\u2019s restaurant industry statistics, 68% of restaurant owners provide their new employees with a handbook, 19% use online training, and 36% organize a formal 30-day check-in. A thorough onboarding plan and consistent employee communication have proven to be efficient methods of retaining high-performing staff.<\/p>\n\n\n\n (US Bureau of Labor Statistics)<\/p>\n\n\n\n Working in the food service industry is how a third of US teenagers earned their own money last year. The Bureau of Labor found that 1.6+ million teens worked in restaurants across the country in 2020, the same number as before the recession.<\/p>\n\n\n\n (National Restaurant Association)<\/p>\n\n\n\n The racial gap is quite obvious in some industries, with white people predominantly occupying managerial positions. However, restaurant business statistics show that this is not the case in the restaurant industry, where minority managers are more common than anywhere else.<\/p>\n\n\n\n (Statista)<\/p>\n\n\n\n Establishments in which customers get minimal table service and are expected to pay before they eat employ approximately one-quarter of restaurant industry employees work. Large franchises<\/a> like McDonald\u2019s, Wendy\u2019s, and Burger King are the dominant employers in this portion of the industry.<\/p>\n\n\n\n (National Restaurant Association)<\/p>\n\n\n\n Restaurant statistics inform us that restaurants lost more than half their employees last year, with a quarter of them coming back to the industry by 2021. Of course, the main reason is the COVID-19 pandemic, with millions of workers either being laid off or furloughed<\/a>.<\/p>\n\n\n\n (7shifts)<\/p>\n\n\n\n According to a survey conducted by 7 Shifts, which included the data from 150,000 restaurants, it takes less than two months for restaurant workers to leave their job. Restaurant employment statistics show that employees working the counter have the highest churn rate, whereas managers are least likely to leave their job in a rush.<\/p>\n\n\n\n (Toast)<\/p>\n\n\n\n Many of us think of restaurant employees as expendable, but Toast\u2019s research warns that the cost of replacing a staff member in a restaurant amounts to $5,864 on average. This is how these costs add up: pre-departure = $176, recruiting = $1,173, selection = $645, orientation and training = $821, productivity loss = $3,049.<\/p>\n\n\n\n (7shifts)<\/p>\n\n\n\n Of all restaurant employees, chefs work the longest hours. According to 7 Shifts\u2019 restaurants statistics, an average shift for a chef lasts 7.72 hours, while hosts and hostesses who cover only the busiest restaurant hours work 5.61 hours. Bussers and servers have similar shifts to hosts: 5.84 and 5.97 hours respectively.<\/p>\n\n\n\n (7shifts)<\/p>\n\n\n\n If you already own a restaurant, you know this restaurant statistic first-hand. This shortage of workers on Saturdays can be explained by rough Friday nights or the fact that the majority of people want the weekend off. It\u2019s easier for restaurant workers to say they\u2019re not feeling well than to admit they want to go to the beach with their friends or family. In order to plan their workers\u2019 shifts better, restaurant owners use free scheduling tools<\/a> that also help them reschedule shifts faster.<\/p>\n\n\n\n (National Restaurant Association)<\/p>\n\n\n\n According to estimates by the National Restaurant Association, there will be 1.6 million new job posts in the restaurant industry in the next decade. This corresponds with the projections of a growing population.<\/p>\n\n\n\n (Statista)<\/p>\n\n\n\n Quick-service restaurants, more commonly known as fast-food restaurants, are incredibly popular among Americans. In 2019 alone, there were nearly 200,000 franchise establishments serving millions of customers across the country.<\/p>\n\n\n\n (National Restaurant Association)<\/p>\n\n\n\n Thanks to their convenience and affordable prices, quick-service restaurants attract vast numbers of customers. Fast food industry statistics published by the National Restaurant Association revealed that, in 2020, this industry generated profits of nearly $300 billion, despite the pandemic.<\/p>\n\n\n\n (Brandon Gaille)<\/p>\n\n\n\n Our nation is big on fast food. With on-premise restaurants, drive-thrus, buffets, cafeterias, and take-out restaurants, how could we stay away from it? A quarter of American adults eat at fast food restaurants a minimum of three times per week.<\/p>\n\n\n\n (National Center for Health Statistics)<\/p>\n\n\n\n Fast food statistics published by the National Center for Health Statistics reveal that the percentage of US adults who consume meals prepared by the quick-service food industry exceeds one-third. The same research indicates that men are more likely than women to indulge in fast food on a daily basis.<\/p>\n\n\n\n (Brandon Gaille)<\/p>\n\n\n\n And the habit of eating at these easily accessible restaurants costs the average American household $100 a month, or $1,200 annually. The country as a whole spends $50 billion on quick-service dining every year.<\/p>\n\n\n\n (Franchise Help)<\/p>\n\n\n\n Fast food restaurant industry statistics show that half of quick service restaurants that mix up their offer and include a bit of organic food on their menu have an average check size of between $5 and $7.<\/p>\n\n\n\n (National Restaurant Association)<\/p>\n\n\n\n Consumers love the convenience and affordability of limited-service restaurants. They can be in and out in a matter of minutes with a meal they didn\u2019t have to prepare themselves. And as part of the pandemic recovery, industry statistics by the National Restaurant Association project an 8% growth rate for these establishments in 2021.<\/p>\n\n\n\n (Restaurant Dive)<\/p>\n\n\n\n Consumers love the convenience and affordability of limited-service restaurants. They can be in and out in a matter of minutes with a meal they didn\u2019t have to prepare themselves. In order to provide an even faster, and, what\u2019s more important, safer way to get food during the pandemic, 72% of quick-service implemented online and mobile ordering.<\/p>\n\n\n\n (Statista)<\/p>\n\n\n\n When people use food delivery services, they tend to spend more money than when ordering the same food in a restaurant. Ordering a $20 meal will normally cost $25, since the delivery person needs to get paid, too. For a quarter of Americans, this is the average budget they stick to when getting meals delivered.<\/p>\n\n\n\n (Statista)<\/p>\n\n\n\n Restaurant industry statistics by Statista show that another third of consumers are willing to splurge for double the previously mentioned amount and spend up to $50 on their delivery order.<\/p>\n\n\n\n (Gloria Food)<\/p>\n\n\n\n With a plethora of restaurants offering food delivery services, Americans have grown accustomed to ordering in when they don\u2019t feel like cooking or dressing up for a night on the town. As Gloria Food\u2019s ordering statistics indicate, a whopping 86% of US adults get food delivered to their front door at least once a month.<\/p>\n\n\n\n (Gloria Food)<\/p>\n\n\n\n The main reason for Millenials to order food is so they can eat while enjoying watching shows or movies in the comfort of their own home. More than half of the respondents in this age group indicated they enjoy staying in and watching TV shows and movies with their meal. Millennials are also the largest group of food-truck consumers<\/a>.<\/p>\n\n\n\n (Gloria Food)<\/p>\n\n\n\n From a customer\u2019s perspective, there\u2019s nothing worse than slow delivery. When people order food from a restaurant, they want it ASAP. In fact, they want it fast so bad that nearly a third are willing to pay extra for it, Gloria Food restaurants statistics indicate.<\/p>\n\n\n\n (Cintl)<\/p>\n\n\n\n Even though it might sound counterintuitive, offering food delivery can attract customers to eat in your restaurant. Research by Cintl shows that 67% of customers who order from a restaurant online have a tendency to visit the same restaurant when they dine out. Timely delivery of delicious food can be a great calling card that will make customers want to see your in-house offer.<\/p>\n\n\n\n (eMarketer)<\/p>\n\n\n\n Restaurant industry data on online delivery published by eMarketer suggests that more than half of consumers who use the service belong to Gen Z, whereas baby boomers make up only 17%.<\/p>\n\n\n\n (US Department of Agriculture)<\/p>\n\n\n\n A survey conducted by the National Restaurant Association reveals that slightly over half of the food dollars in America go toward restaurant spending. Nearly as much is allocated to groceries eaten at home.<\/p>\n\n\n\n (Toast)<\/p>\n\n\n\n Some staff turnover is a normal occurrence in any industry. However, the restaurant business has a very high employee churn rate, and the majority of restaurateurs point this out as their second-biggest challenge in business, according to HubSpot research.<\/p>\n\n\n\n (Toast)<\/p>\n\n\n\n The same study, which included 1,253 restaurant owners, shows that the biggest obstacle they face is high operating costs. Groceries, employee salaries, taxes, rent, utilities – the expenses add up, leaving less of a profit margin than many expect.<\/p>\n\n\n\n (Toast)<\/p>\n\n\n\n33% of people read other guests\u2019 reviews before selecting a place to eat.<\/strong><\/h4>\n\n\n\n
91% of restaurant operators use Facebook to promote their business, while 78% use Instagram as well.<\/strong><\/h4>\n\n\n\n
75% of people would stay away from a restaurant that has negative reviews about its cleanliness.<\/strong><\/h4>\n\n\n\n
A one-star increase on Yelp can boost a restaurant\u2019s profits by up to 9%.<\/strong><\/h4>\n\n\n\n
43% of customers are likely to leave a review after a positive restaurant experience.<\/strong><\/h4>\n\n\n\n
Restaurant Review Statistics<\/h3>\n\n\n\n
77% of diners prefer peer reviews to critic reviews.<\/strong><\/h4>\n\n\n\n
33% of Americans would never eat at a restaurant with a rating lower than four stars.<\/strong><\/h4>\n\n\n\n
79% of customers trust online reviews as much as they trust personal recommendations.<\/strong><\/h4>\n\n\n\n
50% of consumers only trust online reviews that have been left in the past 14 days.<\/strong><\/h4>\n\n\n\n
61% of consumers learn about food online.<\/strong><\/h4>\n\n\n\n
69% of millennial diners will take a picture of their food for Instagram before eating it.<\/h4>\n\n\n\n
Restaurant Industry Employment Statistics<\/h3>\n\n\n\n
The restaurant industry makes up 3.8% of the total US workforce.<\/strong><\/h4>\n\n\n\n
Almost six in 10 adults have worked in a restaurant at some point in their lives.<\/strong><\/h4>\n\n\n\n
More than two thirds of all restaurants offer an employee handbook to their newly hired staff.<\/strong><\/h4>\n\n\n\n
More than 1.6 million teenagers worked in the restaurant industry in 2020.<\/strong><\/h4>\n\n\n\n
There are more managers of ethinc-minority backgrounds in the restaurant industry than in any other industry.<\/strong><\/h4>\n\n\n\n
4 million people are employed in quick-service restaurants.<\/strong><\/h4>\n\n\n\n
The National Restaurant Association reported that more than eight million food service employees lost their job in 2020.<\/strong><\/h4>\n\n\n\n
The average job tenure of a restaurant employee is just one month and 26 days.<\/strong><\/h4>\n\n\n\n
The average cost of replacing a restaurant worker is $5,864.<\/strong><\/h4>\n\n\n\n
The average shift of a restaurant employee lasts 6.4 hours.<\/strong><\/h4>\n\n\n\n
Saturday is the most common day of the week for restaurant employees not to show up at work.<\/strong><\/h4>\n\n\n\n
1.6 million new restaurant jobs are projected to be created in the next ten years.<\/strong><\/h4>\n\n\n\n
Quick-Service Restaurant Industry Statistics<\/h3>\n\n\n\n
There were approximately 195,000 quick-service restaurant franchises in 2019, and the number rose in 2020.<\/strong><\/h4>\n\n\n\n
The quick-service industry generated nearly $300 billion in 2020.<\/strong><\/h4>\n\n\n\n
24% of US adults consume at least three meals provided by the quick-service food industry every week.<\/strong><\/h4>\n\n\n\n
36.6% of adult Americans eat fast food every day.<\/strong><\/h4>\n\n\n\n
The average American family spends $1,200 a year on food prepared in quick-service restaurants.<\/strong><\/h4>\n\n\n\n
50% of quick-service restaurants that include organic food in their offer have an average check size of $5-7.<\/strong><\/h4>\n\n\n\n
The expected growth rate of limited-service restaurants for 2021 is 8%.<\/strong><\/h4>\n\n\n\n
72% of limited-service restaurants added enhanced delivery and online ordering in 2020.<\/strong><\/h4>\n\n\n\n
Online Ordering Statistics<\/h3>\n\n\n\n
26% of US consumers spend up to $25 per order when ordering food online.<\/strong><\/h4>\n\n\n\n
34% of US customers spend up to $50 per order when ordering food online.<\/strong><\/h4>\n\n\n\n
86% of American adults order food at least once a month.<\/strong><\/h4>\n\n\n\n
57% of millennials say they have restaurant food delivered so they can enjoy movies and TV shows at home.<\/strong><\/h4>\n\n\n\n
27% of people who use food delivery services are willing to pay extra for fast delivery.<\/strong><\/h4>\n\n\n\n
67% of customers who place orders online visit the restaurant more frequently than those who do not.<\/strong><\/h4>\n\n\n\n
55% of people who use online delivery services are in the 18-24 age group.<\/strong><\/h4>\n\n\n\n
54.8% of the budget Americans allocate to food is spent in restaurants.<\/strong><\/h4>\n\n\n\n
Restaurant Industry Challenges<\/h3>\n\n\n\n
51% of restaurant owners say hiring, training, and retaining staff is the biggest challenge they face.<\/h4>\n\n\n\n
52% of restaurateurs say high operating costs are their biggest obstacle in business.<\/strong><\/h4>\n\n\n\n
Restaurant Technology Statistics<\/h3>\n\n\n\n
An overwhelming 95% of restaurant owners say the use of technology improves the overall efficiency of their establishments.<\/strong><\/h4>\n\n\n\n