Source: US Census Bureau, 2021
Eating out has become a fashionable lifestyle among consumers in the United States. And, even with the pandemic in full swing, many still desire to enjoy a meal or a drink with friends and loved ones. Restaurants are not just a place to get food. They are also a place to commune. In this article, we’ll show and discuss key numbers and statistics that make the restaurant industry move before the pandemic. This article will discuss the different kinds of restaurants in the market- quick-service restaurants (QSR’s) and full-service restaurants (FSR’s).
Number of Restaurants in the US Table of Contents
- Number of quick-service restaurants (QSRs) in the US
- Frequency of Americans to dine outside
- Number of full-service restaurants (FSRs) in the US
- US city with the most number of restaurants
- Largest restaurant chain in the US
- Number 1 fast food in the US 2020
- Number of chain restaurants in the US
- Amount of money the restaurant industry earns
- Number of people that work in the restaurant industry in the US
- Hourly wage of foodservice employees in the US
- Customer satisfaction on dining in a restaurant?
- Reasons why restaurants fail
- Number of successful restaurants in the US
- Current trends in the restaurant industry
- What are the challenges facing restaurants today?
How many quick-service restaurants (QSR’s) are there in the US?
Quick service restaurants include limited-service eating places, fast-food restaurants, pizza-delivery establishments, ice cream parlors, beverage bars, cafeterias, carryout sandwich shops, and carryout service shops with on-premise baking of donuts, cookies, and bagels.
Quick service restaurant chains are regularly called into question due to their supply and production of unhealthy foods. During an online survey in 2016, 39% of the respondents said that healthy options play a major role when choosing a fast-food restaurant.
How often do Americans dine at a quick-service restaurant?
In 2016, a survey carried out among Americans aged 18 years and older determined how frequently they eat at quick-service restaurants. 20% of the respondents said they dine out at quick-service restaurants once per week while 18% stated that they dine out several times per week. Of course, the number changed after the pandemic broke out.
In the US, 46% of consumers are likely to avoid going to restaurants and cafes even when the restrictions are lifted because of COVID-19. It is the top 7th on the list that includes cinema/theater (58%), music festivals (58%), sports events (56%), and pubs/bars/clubs (56%).
Top Activities or Places People Will Avoid for the Time Being
When COVID-19 Restrictions Are Lifted - As of May 31, 2020 in the US
Cinema / Theater: 58
Cinema / Theater
%Music Festivals: 58
Music Festivals
%Music Concerts: 57
Music Concerts
%Sports Events: 56
Sports Events
%Pubs / Bars / Clubs: 56
Pubs / Bars / Clubs
%Gym / Sports Centers: 50
Gym / Sports Centers
%Restaurant / Cafes : 46
Restaurant / Cafes
%Large Retail Shops / Shopping Centers: 45
Large Retail Shops / Shopping Centers
%Museums / Galleries: 44
Museums / Galleries
%Shopping Downtown / Highstreet: 37
Shopping Downtown / Highstreet
%Source: Statista COVID-19 Barometer, 2020
Designed byHow many Full-Service Restaurants (FSR’s) are there in the US?
Full-service restaurants (FSRs) are restaurants mainly engaged in providing food services to customers who order and are served while seated and pay after eating. It was estimated that there were 33,160 FSR franchise establishments in 2019.
Most Americans, 44% to be exact, stated in a pre-pandemic survey that they very much enjoy dining out at a full-service restaurant.
Which city in the US has the most number of restaurants?
One of the hallmarks of a great city is a smorgasbord of great places to eat. The “food scene” according to Joe Cortright, principal economist with Impresa, is an important component of the urban experience.
The biggest restaurant city is San Francisco, with 39.3 restaurants per 10,000 households. Other restaurant-dense cities include New York City, the areas outside of New York City, Boston, Seattle, and San Jose, California.
What is the largest restaurant chain in the US?
Each year, the QSR magazine takes the pulse of the quick-service landscape – from systemwide sales to average-unit volumes, in order to take a peek at the country’s most dynamic industries, which is often referred to as the heartbeat of the American consumer.
Although it’s pulled back significantly in the last couple of years, sandwich giant Subway remains by a great deal the largest restaurant chain. Its 24,798 domestic locations are 9,973 ahead of Starbucks.
What is the number 1 fast-food restaurant in the US in 2020?
Chick-fil-A claimed the number one spot as America’s best fast-food chain for the fourth year in a row, according to the 2019 American Customer Satisfaction Index (ASCI). In 2020, it retained its title with a score of 84. It trumped all fast-food chains including big old McDonald’s which netted a whopping 40.1 billion sales during the year. This is against Chick-fil-A’s 4.5 billion.
Chic-fil-A is also the top fast-food chain in the chicken category. Its closest rival as the best restaurant when it comes to customer satisfaction is Chipotle with a rating of 80, beating it by 4 points. The average ACSI rating is 78. And, many brands fall below in 2020.
These include popular favorites including Little Caesar’s (76), Taco Bell (74), and McDonald’s.
Leading US Quick-Service Restaurants
Based on American Customer Satisfaction Index Scores in 2020
Chick-fil-A: 84
Chick-fil-A
Chipotle Mexican Grill: 80
Chipotle Mexican Grill
KFC: 79
KFC
Arby's: 79
Arby's
Dominos Pizza: 79
Dominos Pizza
Subway: 79
Subway
Panera Bread: 79
Panera Bread
Dunkin' Donuts: 79
Dunkin' Donuts
Papa John's : 78
Papa John's
Starbucks: 78
Starbucks
Source: ACSI, 2020
Designed byHow many chain restaurants are there in the US?
Ibis World reported that there are 125,444 chain restaurant businesses in the US as of 2020, with a 1.4% year-on-year average growth from 2015-2020. The number of businesses in the chain restaurant industry is expected to grow by 1.9% in 2020. The Southeast region is where most of the chain restaurants are located.
In Spring 2018, there were 307,940 chain restaurants and 352,815 independent restaurants in the US.
How much does the restaurant industry earn?
Anyone who owns a restaurant will tell you that it’s way harder than it looks. If you manage to push through your initial year with only a few hiccups, you can expect to hit your return of investment (ROI) in roughly 4 years. The industry standard is 3 to 5 years.
Owing to how challenging it is to run the different aspects of a food service establishment, the SaaS industry has its own sector called restaurant management software.
Most Popular Restaurant Management Software
- Toast POS – Toast empowers a lot of US-based restaurants and has been awarded FinancesOnline’s Expert’s Choice Award 2019, reflecting the capabilities of this restaurant management SaaS.
- TouchBistro – An iOS point-of-sale system, TouchBistro is remarkably popular among restaurant owners for its features and functionalities.
- Oracle Hospitality – As its namesake implies, Oracle Hospitality is a hotel management software that naturally offers a lot of restaurant and food establishment features.
- Revel Systems POS – Designed for food and retail, Revel Systems POS is a powerful point-of-sale system that users point out is quite intuitive.
- When I Work – As a staff scheduling and management tool for food service employees, When I Work has been touted as an online restaurant platform that helps increase management efficiency and productivity.
How many people work in the restaurant industry in the US?
In 2015, there were approximately 14 million people working within the industry, and this number is expected to reach over 16 million by 2026.
In 2019, roughly 3.88 million employees worked in the quick-service restaurant (QSR) franchise industry in the US. This is a 35% increase since 2010.
On the other hand, employment in the table/full-service restaurant franchise industry was estimated at 1,116,894 in 2019.
How much is the hourly wage of foodservice employees in the US?
Like other service-oriented industries, the hours in the foodservice industry are varied and can be demanding, so one can argue that the pay is not commensurate to the energy and effort employees put into their work.
How much do people enjoy dining in a restaurant?
Since 2004, the quick-service restaurant sector (QSR) in the US has seen year-over-year growth, with its peak consumer spending reaching approximately $300 billion in 2018. Similarly, a notable 7% decline in consumer spending was seen in 2019.
Why do restaurants fail?
According to the 2017 fall census from NPD group, the number of independent restaurants in the US fell 3%, which brings the number to 346,105 units, a decrease of 10,952 units from the same period last year. This came as a result of chain restaurants remaining flat with their 2016 numbers.
The drop in independent restaurants was mostly in sit-down restaurants, as Americans increasingly favor grab-and-go delivery options. Overall, the number of US restaurants declined 2% for the period to 647,288 units. Full-service restaurants on the other hand, also fell 2%, to 294167.
How many successful restaurants are there in the US?
The restaurant business is very tough. The average lifespan of a restaurant is five years and according to some estimates, up to 90% of new ones fail within the first year. However, there are some very successful exceptions that manage to succeed amidst challenges and competition.
What are the current trends in the restaurant industry?
National Restaurant Association conducted the What’s Hot survey in November-December 2019, wherein 600 American Culinary Federation chefs answered an online survey, asking them to rate how hot below trends would be on a scale from sizzling hot, steaming, simmering, and just room temperature.
Top 10 overall restaurant trends for 2020:
- Eco-friendly packaging
- Plant-based proteins
- Delivery-friendly menu items
- Healthy bowls
- Scratch-made
- Creativity with catering
- Revamped classic cocktails
- Stress relievers
- Specialty burger blends
- Unique beef and pork cuts
While some of these trends already sound familiar and are self-explanatory, others are new to the ear, or at least in terms of what it’s called. For instance, stress relievers refer to ingredients in the food that promote relaxation/relieve stress. Specialty burger blends include mushroom-beef burgers and other plant-based burger patties options.
Aside from the above-mentioned trends, food halls will continue to grow in popularity as aspiring restaurateurs realize that they don’t need to sink all their startup budget into brick-and-mortar locations. Food halls are communal dining spaces where operators can rent a booth to test out their restaurant concept.
When it comes to QSRs, lifestyle campaigns and limited-time offers (LTOs) will be key to marketing. more and more restaurants will invest in wacky and Instagrammable merchandise as part of their customer retention efforts. Brands will also continue to lean into specialty LTOs in order to pique consumer interest and drive social media engagement.
The restaurant industry is the type of business that if you don’t evolve or innovate, your business will die. Consumers will eventually get tired of the same menu, hence introducing new product concepts is one of the keys to keeping your restaurant afloat. It’s crucial for the restaurant owners to be perceptive and know what their clients want. Because as the lifestyle of people changes, so does their diet.
What are the challenges facing restaurants today?
The restaurant industry faces numerous challenges that impact operations and profitability. Understanding these hurdles can shed light on the complexities of running a restaurant. Here are some key challenges:
- Staffing Shortages: Many restaurants struggle to find and retain skilled staff. The COVID-19 pandemic intensified this issue, leading to a mass exodus of workers. Restaurant owners often face higher wages and benefits to attract employees, impacting profit margins.
- Supply Chain Disruptions: Restaurants rely on a steady supply of ingredients and materials. Global supply chain issues have caused delays and increased costs for everything from fresh produce to essential equipment. These disruptions can lead to menu changes and affect customer satisfaction.
- Rising Costs: The cost of operating a restaurant is constantly increasing. Expenses such as rent, utilities, and food prices are rising. Owners must balance these costs while maintaining affordable menu prices for customers.
- Changing Consumer Preferences: Today’s diners are more health-conscious and environmentally aware. Restaurants must adapt to these changing preferences by offering healthier options, sustainable sourcing, and ingredient transparency. Failing to meet these expectations can lead to loss of clientele.
- Competition: With an ever-growing number of dining options, competition is fierce. Restaurants must find unique selling points to stand out, whether through innovative menus, exceptional service, or a distinctive dining atmosphere.
- Health and Safety Regulations: The pandemic has increased health and safety regulations. Restaurants must implement strict sanitation practices and maintain compliance, which can be challenging and costly.
Going Back to Normal
Of course, COVID-19 has thrown a temporary wrench into the gears of these plans. And, in some business sense, the pandemic has brought in a statistical anomaly. Nevertheless, many hopefuls, including restaurant owners, foodies, culinary professionals, and the common man are itching to get some normalcy back into the restaurant industry.
But it is good to note that the pandemic has also squeezed out many innovations from our go-to food places.
Firstly, the increased use of technology for marketing and distribution was very apparent during the pandemic. Secondly, a new range of food that travels well have been developed. And, many new smaller players have come to help fill demand gaps.
The year 2020 was surely a statistical anomaly. But all roads point towards the industry pushing to get things back to the way they were before. The restaurant industry is very innovative. And, surely, we can all hope that it can find ways to get through this pandemic and take it back to what it was before.
Key Insights
- Total Number of Restaurants: There are over 1 million restaurant locations in the US, including both chain and independent restaurants.
- Impact of COVID-19: The restaurant industry saw a significant drop in sales in 2020 due to the pandemic, totaling $564.8 billion, which is $334.2 billion less than pre-pandemic projections.
- Types of Restaurants: The market consists of quick-service restaurants (QSRs) and full-service restaurants (FSRs).
- Quick-Service Restaurants: These include fast-food restaurants, pizza-delivery establishments, ice cream parlors, and more. Healthier menu options are becoming increasingly important to consumers.
- Dining Frequency: Before the pandemic, 20% of Americans dined at QSRs once per week, with 18% dining several times per week. Post-pandemic, 46% of consumers avoid dining out.
- Full-Service Restaurants: There were 33,160 FSR franchise establishments in 2019. Dining out at FSRs is enjoyed by 44% of Americans.
- Top Cities for Restaurants: San Francisco leads with 39.3 restaurants per 10,000 households, followed by New York City, Boston, Seattle, and San Jose.
- Largest Restaurant Chain: Subway is the largest chain with 24,798 locations, followed by Starbucks.
- Top Fast-Food Restaurant: Chick-fil-A was rated the best fast-food chain in 2020 with an ACSI score of 84.
- Restaurant Industry Employment: Approximately 14 million people worked in the industry in 2015, with an expected growth to over 16 million by 2026.
- Current Trends: Trends include eco-friendly packaging, plant-based proteins, delivery-friendly menu items, healthy bowls, and stress-relieving ingredients.
FAQ
- How many restaurants are there in the US? There are over 1 million restaurant locations in the US, including chain and independent establishments.
- How did the pandemic affect the restaurant industry’s sales? In 2020, the restaurant industry’s total sales were $564.8 billion, which was $334.2 billion less than the pre-pandemic projection.
- What types of restaurants make up the US market? The US market consists of quick-service restaurants (QSRs) and full-service restaurants (FSRs).
- What are quick-service restaurants (QSRs)? Quick-service restaurants include limited-service eating places, fast-food restaurants, pizza-delivery establishments, ice cream parlors, beverage bars, cafeterias, carryout sandwich shops, and carryout service shops with on-premise baking.
- How often do Americans dine at quick-service restaurants? Before the pandemic, 20% of Americans dined at QSRs once per week, and 18% did so several times per week. Post-pandemic, 46% of consumers avoid dining out.
- How many full-service restaurant (FSR) franchise establishments are there in the US? There were 33,160 FSR franchise establishments in 2019.
- Which US city has the most restaurants? San Francisco has the highest density of restaurants with 39.3 per 10,000 households, followed by New York City, Boston, Seattle, and San Jose.
- What is the largest restaurant chain in the US? Subway is the largest restaurant chain in the US, with 24,798 locations.
- Which fast-food restaurant was rated the best in 2020? Chick-fil-A was rated the best fast-food chain in 2020 with an ACSI score of 84.
- How many people work in the restaurant industry in the US? Approximately 14 million people worked in the industry in 2015, with the number expected to grow to over 16 million by 2026.
- What are the current trends in the restaurant industry? Current trends include eco-friendly packaging, plant-based proteins, delivery-friendly menu items, healthy bowls, stress-relieving ingredients, and more.
References:
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- Statista Survey. (2020). COVID-19 barometer 2020. Statista.
- Statista Survey. (2016). U.S. consumers who enjoy full service restaurants 2016. Statista.
- Forbes, P. (2012, August 1). Here are the most restaurant- and bar-dense US cities. Eater.
- QSR Staff. (2019, August). The 32 biggest fast-food chains in America. QSR magazine.
- Herbert, G. (2019, June 28). America’s favorite fast food restaurants: Who’s No. 1? syracuse.
- IBISWorld. (2020). Industry market research, reports, and statistics. IBISWorld.
- Riehle, H. (2017, May 20). Restaurant industry 2017 and beyond. National Restaurant Association.
- Bureau of Labor Statistics. (08, September 9). Food preparation and serving related occupations. U.S. Bureau of Labor Statistics.
- International Franchise Association, & IHS Markit. (2020). Franchise business economic outlook for 2020. International Franchise Association.
- Bureau of Labor Statistics. (2020, March 31). Occupational employment and wages – May 2019. U.S. Bureau of Labor Statistics.
- National Restaurant Association. (2020). What’s hot: 2020 culinary forecast. National Restaurant Association.
- Littman, J., & Beckett, E. L. (2020, January 6). 5 restaurant trends that will define 2020. Restaurant Dive.
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