{"id":47987,"date":"2024-10-25T07:00:50","date_gmt":"2024-10-25T12:00:50","guid":{"rendered":"https:\/\/www.escoffier.edu\/?p=47987"},"modified":"2024-12-04T07:53:53","modified_gmt":"2024-12-04T13:53:53","slug":"us-restaurant-foodservice-industry-statistics","status":"publish","type":"post","link":"https:\/\/www.escoffier.edu\/blog\/world-food-drink\/us-restaurant-foodservice-industry-statistics\/","title":{"rendered":"U.S. Restaurant and Foodservice Industry Statistics and Trends for 2024"},"content":{"rendered":"

The restaurant and foodservice industry is one of the largest in the United States, both in terms of its economic impact and the number of people employed\u20141 in 10 people work<\/a> in the industry, which generates 2.5% of the United States\u2019 GDP<\/a>.<\/p>\n

Want to take a deeper dive into this crucial sector of the economy? Let\u2019s take a look at the numbers.
\n

\n
Table of Contents<\/div>\n
<\/div>\n <\/div>\n \n

Restaurant and Foodservice Industry Size<\/h2>\n

Restaurant and Foodservice Industry Sales<\/h3>\n

Like many industries, the restaurant and foodservice industry has changed a lot since 2020, the industry\u2019s resilience has been on display as total food and beverage sales quickly returned to and have now exceeded pre-pandemic levels.
\n\t\n\t

\n\t\t
\nThe restaurant and foodservice industry surpassed $1 trillion in sales for the first time in 2023, and is projected to do so again in 2024.
\n<\/div>\n\t<\/div>\n\n\t\nThough growth slowed between 2021 and 2024, the restaurant and foodservice industry continues to grow. According to data from the National Restaurant Association (NRA), sales grew 8.6% from 2022 to 2023\u2014the year that saw the industry surpass $1 trillion in sales for the first time. And sales are expected to grow another 5.4% in 2024, reaching a projected $1.1 trillion.<\/p>\n

\"Chart
\n(source<\/a>)<\/p>\n

Foodservice Industry Contribution to United States GDP<\/h3>\n

Escoffier reviewed data from the U.S. Department of Commerce\u2019s Bureau of Economic Analysis (BEA) and found that the foodservice industry sector made up 2.5% of the nation\u2019s GDP in 2023\u2014approximately $684 billion.<\/p>\n

\"Foodservice
\n\t\n\t

\n\t\t
\nEscoffier found that the foodservice industry sector contributed approximately $684 billion to the U.S. GDP in 2023\u2014about 2.5%.
\n<\/div>\n\t<\/div>\n\n\t\n\"Foodservice<\/p>\n

While 2.5% may not sound<\/em> like a huge contribution at first, this is actually one of the top-contributing individual sectors of the entire U.S. economy, only ranking below other major contributors like real estate\u2014which, at 12.2%, is by far the largest\u2014and ambulatory health services at 3.6% (which includes non-hospital health services, like doctor\u2019s offices, diagnostic labs, and home health care).<\/p>\n

\"Foodservice
\n(source<\/a>)(source<\/a>)<\/p>\n

Foodservice Industry Market Size<\/h3>\n

In 2023, the foodservice industry\u2019s market size was $905.13 billion. This marked a 9.76% increase over the previous year.<\/p>\n

Not only is the industry\u2019s market size expected to continue to grow\u2014almost doubling by the year 2030, when it is projected to reach nearly $1.8 trillion\u2014but it is expected to grow faster than it has in recent years, at an annual rate of 10.03%.<\/p>\n\"Size\n

\"Size
\n(source<\/a>)<\/p>\n

Current Number of Restaurants, by Type<\/h3>\n

The number of restaurants in the United States is increasing\u2014although some types of restaurants are growing faster than others.<\/p>\n

In 2023, there were 200,859 fast-food restaurants in the United States\u2014up 0.8% since 2022.<\/p>\n

Single-location full-service restaurants (that is, independent restaurants, as opposed to chains) grew at a slightly slower rate; in 2023, there were 146,342 restaurants of this type in the United States, up 0.6% since 2022.<\/p>\n

Fine dining restaurants grew at a rate of 0.3% from 2022 to 2023; there were 4,618 fine dining restaurants in the United States in 2023.<\/p>\n

\"Graph
\n(source<\/a>)(source<\/a>)(source<\/a>)<\/p>\n

Restaurant and Foodservice Employment Statistics<\/h2>\n

1 in 10 people work in the restaurant and foodservice industry, meaning this industry is the second-largest private sector employer<\/a>\u2014behind only the healthcare industry<\/a>.
\n\t\n\t

\n\t\t
\n12.35 million were employed in the restaurant and food service industry as of July 2024\u2014higher than the pre-pandemic peak of 12.29 million in February 2020.
\n<\/div>\n\t<\/div>\n\n\t\nAnd hiring in this industry has proven to be resilient; 12.35 million were employed<\/a> in the restaurant and foodservice industry as of July 2024\u2014higher than the pre-pandemic peak of 12.29 million in February 2020.<\/p>\n

Current Restaurant and Foodservice Industry Employment<\/h3>\n

The industry is projected to add some 200,000 jobs from 2023 to 2024\u2014an increase of 1.3%; by 2032, the industry is projected to add an additional 1.2 million jobs.<\/p>\n\"Total\n

(source<\/a>)<\/p>\n

From the chart above, you can see that total food service jobs are broken into two broad categories: Restaurant Jobs and Non-Restaurant Jobs. The former is self-explanatory, while the latter refers to people employed in the food service industry at businesses other than restaurants<\/a>, such as hotels, hospitals, or entertainment venues.<\/p>\n

While the overall industry has surpassed pre-pandemic employment levels, the recovery has not been equal for all sectors of the industry.<\/p>\n

Full-service restaurants are still 233,200 jobs below pre-pandemic levels\u2014a contraction of 6.3%.<\/p>\n

On the other hand, quick service \/ fast casual restaurants have added 147,200 jobs\u2014an increase of 14.1% from pre-pandemic levels.
\n\t\n\t

\n\t\t
\nDrawing on data from the U.S. Bureau of Labor Statistics, Escoffier found that full-service restaurants have 6.3% fewer jobs than before the pandemic, while jobs at quick service \/ fast casual restaurants have increased by 14.1%.
\n<\/div>\n\t<\/div>\n\n\t\nThe sector that has grown the most<\/strong> is Snack & Non-Alcoholic Beverage Bars, adding 124,500 jobs to pre-pandemic levels\u2014an increase of 30.5%.<\/p>\n

The sector that has contracted the most<\/strong> is Cafeterias \/ Grills \/ Buffets, which is still 32,900 jobs below pre-pandemic levels\u2014a contraction of 34.9%.<\/p>\n

\"Restaurant
\n(source<\/a>)<\/p>\n

Job Growth by Restaurant and Foodservice Industry Position<\/h3>\n

We\u2019ve talked about how employment in the restaurant and foodservice industry is growing and changing; now let\u2019s get a little more specific and look at the types<\/em> of jobs in the industry.<\/p>\n

According to the U.S. Department of Labor\u2019s Bureau of Labor Statistics (BLS), as of 2022, there were 3,410,100 people employed as fast food and counter worker jobs, and there\u2019s an average of 789,300 of these jobs available every year, making this the most common position and<\/em> the position with the most openings out of all positions in the restaurant and foodservice industry.<\/p>\n

However, this position is only expected to grow by about 1.5% between 2022 and 2032. Restaurant cook is the position expected to grow most between 2022 and 2032, growing 20.4% in that time.<\/p>\n\"Number\n

And in that same time frame, the total number of restaurant server jobs is expected to decrease by 3%<\/strong>. But even with that decline, because of turnover in the position, there are still expected to be an average of 440,000 openings each year\u2014second highest of nine major positions.
\n\t\n\t

\n\t\t
\nThe total number of restaurant server jobs is expected to decrease by 3% between 2022 and 2032 \u2013 but there are still expected to be an average of 440,000 openings each year during that period.
\n<\/div>\n\t<\/div>\n\n\t\n

\"Number
\n(source<\/a>)(source<\/a>)<\/p>\n

Restaurant Staffing Shortage Statistics<\/h3>\n

As we mentioned before, even though hiring is increasing across the overall industry, that hasn\u2019t necessarily been the case for every type of business within the industry. And restaurants are still experiencing a staffing shortage. In fact, in 2024, 45% of restaurant operators said their restaurant doesn\u2019t have enough staff to meet demand\u2014and almost 6 in 10 (57%) restaurant operators said they were more than 10% understaffed.<\/p>\n\"How\n

(source<\/a>)<\/p>\n

Many restaurant owners have had to take action to deal with a shortage of employees. Reducing service hours was the most common response to understaffing, with 65% of restaurant owners saying they had done so.<\/p>\n

The next most common responses to understaffing were operating under capacity (52%), closing on days they would normally be open (43%), and paring down their menus (41%).<\/p>\n

\"How
\n(source<\/a>)<\/p>\n

Restaurant Turnover<\/h3>\n

Earlier, we pointed out that, even though the number of server positions is expected to decline between now and 2032, there is still a high number of open positions available each year. This highlights the high turnover rate in the position\u2014and across the restaurant industry as a whole.<\/p>\n

Across the restaurant industry, the average employee turnover is 110 days. Back-of-house positions tend to turn over at a slightly higher rate than front-of-house positions, with 43% and 41% one-year turnover rates respectively. (\u201cOne-year turnover rate\u201d means the percentage of employees who leave a job within one year of starting.)
\n\t\n\t

\n\t\t
\nAcross the restaurant industry, the average employee turnover is 110 days.
\n<\/div>\n\t<\/div>\n\n\t\nManagers, on the other hand, have a significantly lower one-year turnover rate\u201428%.<\/p>\n

When it comes to the reasons why people leave their restaurant jobs<\/a>, pay leads the pack; 34.6% of employees said their wages were the reason they left \/ planned to leave their job.<\/p>\n

(source<\/a>)<\/p>\n

Restaurant and Foodservice Earnings Statistics<\/h2>\n

Average Earnings Among All Foodservice Workers<\/h3>\n

Compensation can vary widely for employees in different foodservice positions.<\/p>\n

Chefs and head cooks have the highest median and top 10% annual earnings ($58,920 and $93,900 respectively) of nine major positions in the industry.<\/p>\n

Among other back-of-house positions, restaurant cooks had the highest median annual earnings ($35,780), but institution \/ cafeteria cooks had the highest top 10% earnings ($47,310).<\/p>\n

For customer-facing employees, first-line supervisors had the highest median and top 10% annual earnings ($38,520 and $62,320 respectively).<\/p>\n

Among other customer-facing positions, non-restaurant servers had the highest median earnings ($33,110), but bartenders had the highest top 10% earnings ($61,210).<\/p>\n\"Average\n

\"Average
\n(source<\/a>)<\/p>\n

Average Earnings for Tipped Employees at Full-Service Restaurants<\/h3>\n

In 19 states, tipped workers earn a minimum cash wage of $2.13 per hour; this amount has not increased since 1991. Only 7 states (Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington) require employers to pay tipped employees the full state minimum wage regardless<\/em> of how much they earn in tips.<\/p>\n

When it comes to tipped employees\u2019 earnings, the type of restaurant they work at can matter. Tipped employees at family dining and casual dining restaurants earn an average of $27\/hour, averaging $7\/hour in wages and $20\/hour in tips.<\/p>\n

Meanwhile, tipped employees at fine dining restaurants earn an average of $36.48\/hour, averaging $6.98\/hour in wages and $29.50\/hour in tips.<\/p>\n

While average hourly wages are largely the same among tipped employees at different types of restaurants, employees at fine dining restaurants earn 47.5% more in tips per hour.<\/p>\n\"Tipped\n

(source<\/a>)(source<\/a>)<\/p>\n

Data suggest that it may be difficult for foodservice workers to make ends meet. Escoffier compared the average annual wage for foodservice industry workers in each state with the average annual cost of living in each state, and found that there is not a single state in the country where the average wage was higher than the average cost of living.
\n\t\n\t

\n\t\t
\nAnalyzing state-by-state data, Escoffier found that the average annual cost of living is higher than the average annual foodservice wage in every state.
\n<\/div>\n\t<\/div>\n\n\t\nHowever, some states fared better than others. Vermont tops the list; the average foodservice wage is 99.51% of the average cost of living there. Rounding out the top five were Maine (99.08%), Arizona (97.58%), Washington (95.28%), and Missouri (93.72%).<\/p>\n\"Top\n

(source<\/a>)(source<\/a>)<\/p>\n\t\n\t

ENJOYED THIS DEEP DIVE INTO RESTAURANT STATISTICS? CHECK OUT THESE ARTICLES NEXT:<\/h3>\n\n\t\n