Learn about the restaurant industry and find information on how to start a restaurant business. Don’t forget you can receive free or low-cost training and free professional business advice, from your local Small Business Development Center!
View our related business reports here: Fast Food Restaurant Business, Food Truck Business, Bar Business, and Food Service Industry Research.
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Full-Service Restaurant Industry Forecast
The full-service restaurant industry has changed rapidly over the last several years, driven by a significant shift in consumer behavior. Today’s diners increasingly prioritize quality, service, and authentic experiences rather than convenience alone. At the same time, inflation has placed financial pressure on operators. According to the National Restaurant Association, restaurant operating costs have increased by 36%. One of the main factors includes rising food cost which have prompted operators to increase menu prices in response. Despite these challenges, restaurants remain competitive with other dining options. In fact, many consumers now view fast-food meals as being nearly as expensive as dining at a full-service restaurants. As the price gap continues to narrow, more guests feel it is worthwhile to spend a little extra for a higher-quality dining experience.
Looking ahead, industry growth is expected to continue as restaurant sales steadily increase. Meanwhile, changing consumer preferences will drive the adoption of new business concepts and models. For example, off-premise dining is expected to expand further as convenience remains a top priority for consumers. Full-service restaurants that offer takeout, delivery, and pickup services will be better positioned to meet evolving customer expectations. Additionally, consumers are increasingly seeking memorable experiences rather than simply a meal. Incorporating themed events, live entertainment, or technology-enhanced dining experiences can help restaurants differentiate themselves and continue delivering the engaging experiences today’s diner’s desire.
Here are some additional business resources specific to the industry:
- Resource Library – National Restaurant Association (1)
- Resources for Food Service Businesses – SCORE
- Resources for Multi-Unit Operators – OpenTable (1)
Full-Service Restaurant Business Overview & Trends
NAICS Code: 722511, SIC Code: 5812
Restaurants are an important segment of the U.S. food services industry with a phenomenal impact on the U.S. economy. The National Restaurant Association State of the Industry Report projects 1.55T sales nationwide, a gain of 1.3% for sales.
This restaurant industry summary is from First Research which also sells a full version of this report.
- “Companies in this industry operate restaurants and other eating places, including full-service restaurants (FSRs), quick-service restaurants (QSRs), cafeterias and buets, and snack bars. Major companies include Bloomin’ Brands, Darden Restaurants, McDonald’s, Starbucks, and Yum! Brands (all based in the US), as well as Greggs (the UK), Jollibee (the Philippines), Skylark Group (Japan), and Restaurant Brands International (Canada).
- The global food service industry is forecast to grow about $4 trillion by 2030 at a 3% compound annual growth rate (CAGR) from the 2024 to 2030, according to Grand View Research (GVR). Cross- border franchising of restaurants has helped boost growth in recent years.
- The US restaurant industry includes about 570,000 restaurants with combined annual revenue of about $600 billion.”
These restaurant and consumer food service business market insights are derived from Euromonitor which sells a full version of their report.
- In recent years, the restaurant industry growth has been driven by inflation of menu prices rather than consumer transactions. Operating costs are also increasing due to inflation. Ultimately leading consumers to be more sensitive to dinning out frequently.
- Consumers are increasing their usage of online third-party take-out channels such as Uber Eats and Door Dash. However, with rising delivery fees, consumers may be selective with their purchase.
- Restaurants are increasing development on loyalty programs; these programs include rewards systems, deals, and coupons that provide value to financially sensitive consumers.
Restaurant Technology
Technology is playing an increasingly important role in the restaurant industry. Many full-service restaurants are adopting innovations such as interactive digital experiences, self-service technology, and robotic waitstaff. Here is information on technology usage in full-service restaurants:
- Connected Technology as Restaurants’ Next Competitive Edge – National Restaurant Association (2)
- Restaurant Industry Trends & Innovations – Deloitte
- Restaurant Tech Trends – Restaurant Business (1)
- How to choose restaurant AI tools – Restaurant Dive (1)
- Top restaurant tech trends to watch – OpenTable (2)
For additional information on technology, visit our AI for Small Business Guide.
Full-Restaurant Customer Demographics
Major customer segments for full-service restaurants are reported by IBISWorld which offers full versions of the reports for purchase here.
- The Full-Service restaurant industry is segmented by household income.
- High-Income Consumers, households earning $100,000 and up contribute 54.2% to spending in the industry. This customer group typically consists of upper-income and high-net-worth households that value high quality and unique dining experiences. Their purchasing power enables them to dine out frequently. Fine dining restaurants that highlight seamlessness in booking reservations, and quality dining experiences may continue to retain this market.
- Middle-Income Consumers, households with incomes between $50,000 and $90,000 account for 15.6% of the industry revenue. This group has disposable income but is also very cost aware. This also makes them the main marketing target market for medium-sized restaurants. Because of their constricted budgets, promotions are greatly valued by this segment.
- Lower-Income Consumers, Households earning less than $50,000 are highly unlikely to dine out when the economy worsens. This group makes up 20.7% of revenue for full-service restaurants. Operators can attract this group by providing affordable menu options and discounts.
- Corporate, Public Sector, and Businesses account for 9.5% of industry revenue. This heavily benefits restaurants that are located near offices and hotels since this group generally spends on meetings and events.
Additional information on restaurant demographics can be found in a variety of trade associations and publications, including:
- Consumer Outlook – National Restaurant Association (3)
- Taste test: Where consumers are dining out – Bank of American Institute
- What US consumers want from restaurants – McKinsey
Restaurant Business Startup Costs
Opening a restaurant requires an understanding of the startup costs involved in order to develop a sound financial plan.
According to a cost breakdown reported by Toast (1), restaurant-related costs are as follows:
“Kitchen equipment and installation
Build your equipment list around the menu and expected production volume. The purchase price is only part of the cost if equipment also needs delivery, installation, or changes to the building.
- Cooking equipment: Ovens, ranges, fryers, grills, and specialized appliances.
- Cold storage: Refrigerators, freezers, and any walk-in units.
- Preparation and sanitation: Prep tables, sinks, dishwashing equipment, and storage.
- Installation: Delivery, hookups, commissioning, and required modifications.
- Existing or used equipment: Assess condition, capacity, warranties, and likely repair needs.”
Additional restaurant startup costs information can be found at:
- A List of Expenses for Starting a Restaurant From Scratch – Chron
- “After licensing and permit fees, which can run as much as $7,000 depending on the state, opening a new 90-seat restaurant costs an average $275,000, or around $3,064 per seat, to $400,000, or $4,444 per seat.”
- How much does it cost to open a restaurant? – YELP
- “Kitchen equipment can quickly balloon a restaurant’s expenditures, averaging anywhere from $40,000 to almost $200,000, and overspending in this area can lead to further budgetary constraints. A good way to cut down on these expenses is to buy high-quality secondhand equipment, for example, from restaurants that have gone out of business.
- It’s common to get major items like fridges, ovens, and more at restaurant auctions. These auctions can be online or in-person. It may be wise to get larger, more expensive items at in-person auctions since you can check out the quality of the equipment with your own eyes. Smaller or less expensive items are less of a risk if purchased at online auctions.”
Restaurant Business Plans
The following are sample Restaurant Business Plans for reference. For additional business plan samples, visit our Business Plans guide.
- Small Restaurant Business Plan – LivePlan
- Restaurant Business Plan – Growthink
- Restaurant Business Plan – Profitable Venture
- Restaurant Business Plan – The Finance Resource
- Restaurant Business Plan Template – Toast (2)
- How to Write a Restaurant Business Plan – OpenTable (3)
- How to Write a Restaurant Business Plan – DoorDash
Restaurant Business Associations
Trade associations often are excellent sources of information on an industry. Here are some relevant restaurant industry associations:
- Council of State Restaurant Associations
- National Restaurant Association (4)
- Green Restaurant Association
- Society for Hospitality and Food Service Management (SHFM)
- International Foodservice Manufacturers Association (IFMA)
- State Restaurant Associations – select state from drop down
Restaurant Business Regulations
The section is intended to provide a general awareness of restaurant regulations and agencies to consider when starting a restaurant business. Check with your state and municipality for rules and regulations that may impact the business in your area.
- Alcohol Laws by State – Federal Trade Commission
- Most Recent Food Code – U.S. Food & Drug Administration
- Food Safety Best Practices for Human Food – U.S. Food & Drug Administration
- Restaurant Worker Safety – U.S. Occupational Safety and Health Administration
- State Retail and Food Service Codes and Regulations by State – U.S. Food & Drug Administration
- Tips & Wages – U.S. Department of Labor
Restaurant Publications
- Food Network Magazine
- Food and Wine Magazine
- Full-Service Restaurant Magazine
- Modern Restaurant Management
- Nation’s Restaurant News
- Restaurant Business (2)
- Restaurant Dive (2)
- Restaurant News.com
For resources to help market your drone business start up, visit our Digital Marketing Guide, Social Media Marketing Guide, and our Website Design Guide.
Restaurant Business Employment Trends
Understanding employment trends within the food service industry is important when opening a full-service restaurant. Restaurant owners rely on a range of roles to operate effectively. This includes cooks, wait staff, and maintenance employees. The following are insights from the Bureau of Labor Statistics Occupational Outlook Handbook into Waiters and Waitresses. A more specific breakdown of other food preparation and serving occupations is available from the Bureau of Labor Statistics.
- “Pay: The median hourly wage for waiters and waitresses was $16.94 in May 2025. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $8.70, and the highest 10 percent earned more than $31.12.
- Work Environment: Waiters and waitresses stand most of their shift and often carry heavy trays of food, dishes, and drinks. The work may be hectic and fast-paced. During busy dining periods, they may be under pressure to serve customers quickly and efficiently. They must be able to work as part of a team with kitchen staff to ensure that customers receive prompt service. Waiters and waitresses may be required to wear a uniform or to comply with a specific dress code.
- Job Outlook: Employment of waiters and waitresses is projected to grow 2 percent from 2025 to 2035, slower than the average for all occupations. Despite limited employment growth, about 423,100 openings for waiters and waitresses are projected each year, on average, over the decade. Most of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.”
Additional Resources
Already in business or thinking about starting your own small business? Check out our various small business resources:
- View more business reports here: Small Business Snapshots
- View small business help topics here: Small Business Information Center
- View industry-specific research here: Market Research Links
- View our small business cybersecurity resources here: Cybersecurity
Remember, you can also receive free professional business advice and free or low-cost business training from your local Small Business Development Center!
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