U.S. Restaurant and Food service Industry Data Reveals Economic and Workforce Data
- A detailed review of 2024 economic and workforce data offers a comprehensive understanding into the current state of the U.S. restaurant and foodservice industry.
- The U.S. restaurant industry surpassed $1 trillion in sales in 2023 and is projected to reach $1.1 trillion in 2024.
- The industry employs 12.35 million people as of July 2024, marking a full recovery and exceeding pre-pandemic levels.
The #1 Ranked Culinary School in the USA, Escoffier, reviewed data of 2024 economic and workforce statistics to gain a comprehensive view of the U.S. restaurant and foodservice industry’s current state. This report delves into multiple parts of the industry, from its rapid growth trajectory to shifts in employment and challenges surrounding compensation. By examining recent trends in sales volume, job creation, and income disparities, the data review sheds light on the evolving demands and opportunities in food service.
| Insight | Key Statistic |
| Industry Size | $1.1 trillion projected in 2024, up by 5.4% |
| GDP Contribution | 2.5% of U.S. GDP in 2023 |
| Employment | 12.35 million jobs as of July 2024 |
| Fast Food Restaurants | 200,859 locations in 2023 |
| Average Monthly Earnings (Non-Tipped) | $58,920 for chefs and head cooks |
| Tipped Worker Earnings | $27-$36.48 per hour, depending on restaurant type |
| Restaurant Turnover | 110 days, 43% in back-of-house roles |
| Average Cost of Living Coverage (Top 5) | Vermont’s wage-to-living cost ratio at 99.51% |
Industry Overview
The U.S. restaurant and food service industry is one of the largest sectors, employing 1 in 10 Americans. In 2023, the industry reached $1 trillion in sales and is expected to grow by 5.4% in 2024, reaching approximately $1.1 trillion. Escoffier’s data compilation shows that despite recent challenges, the sector has rebounded, with total food service employment surpassing pre-pandemic levels.
Restaurant and Foodservice Industry Sales
The industry’s resilience is clear as food and beverage sales returned to and exceeded pre-pandemic levels. According to the National Restaurant Association, the sector grew by 8.6% from 2022 to 2023 and is projected to increase further in 2024.
Foodservice’s Role in the U.S. Economy
In 2023, the food service sector contributed approximately $684 billion to the U.S. GDP, representing 2.5% of the nation’s economic output. Although real estate remains the largest individual sector, food service ranks among the top contributors, showcasing its critical impact on the U.S. economy.
Market Size and Growth Projections
The food service market size reached $905.13 billion in 2023, marking a 9.76% increase over the prior year. By 2030, the market is projected to grow at an annual rate of 10.03%, nearly doubling to $1.8 trillion.
Number of Restaurants by Type
The U.S. has seen a steady increase in restaurant types:
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Fast Food: 200,859 locations (0.8% growth)
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Independent Full-Service: 146,342 locations (0.6% growth)
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Fine Dining: 4,618 locations (0.3% growth)
Employment in the Restaurant and Foodservice Industry
As of July 2024, the restaurant industry employs 12.35 million people, exceeding its February 2020 pre-pandemic peak. Employment is expected to grow, with projections adding 200,000 jobs from 2023 to 2024 and 1.2 million more by 2032.
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Full-Service Restaurants: Down 6.3% from pre-pandemic levels.
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Quick Service: Up 14.1% from pre-pandemic levels.
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Snack & Non-Alcoholic Beverage Bars: Increased by 30.5%, the highest growth.
Job Growth by Position
The fast-food and counter worker role is the most common in the industry, with an estimated 789,300 job openings annually. However, the highest growth is expected for restaurant cooks (20.4%), while server positions are anticipated to decrease by 3% from 2022 to 2032.
Addressing Staffing Shortages
The industry continues to face staffing shortages. In 2024, 45% of restaurant operators reported being understaffed, with 57% stating they were over 10% below optimal staffing levels. To cope, 65% of restaurant owners reduced service hours, while others operated under capacity, closed on certain days, or simplified menus.
Turnover Rates
Employee turnover remains high, with the average tenure at 110 days. Back-of-house positions face a 43% turnover rate within a year, while front-of-house roles see a 41% rate. Managers, however, have a lower turnover rate at 28%, highlighting the retention challenges in non-managerial roles.
Foodservice Earnings
Wages vary widely within the food service industry:
- Chefs and Head Cooks: Median annual earnings of $58,920.
- Tipped Employees (Casual Dining): Average hourly earnings of $27, with $7 from wages and $20 from tips.
- Tipped Employees (Fine Dining): Earn up to $36.48 per hour, with tips contributing $29.50.
Wages vs. Cost of Living
Escoffier’s detailed review on food service wages versus living costs reveals no state where the average industry wage exceeds the cost of living. The top five states where wages come closest to covering living expenses include Vermont (99.51%), Maine, Arizona, Washington, and Missouri.
ENDS
If using this story, please credit and link to: https://www.escoffier.edu/blog/world-food-drink/us-restaurant-foodservice-industry-statistics/
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Author: David Keech
David Keech is a retired teacher and works as a sportswriter, sports official and as an educational consultant. He has reported on amateur sports since 2011, known as 'KeechDaVoice.' David can be reached at [email protected]
