The restaurant industry is a multi-billion-dollar worth market. It is made up of many smaller sectors such as the fast-food industry, online food delivery market, fine-dining and full-service restaurants, fast-casual sector, casual-dining segments, and more. And all these sectors are worth billions of dollars.
What is the revenue of the restaurant industry? How much are worth all these smaller sectors of the industry? Will there be an increase in the revenue in the upcoming years?
In today’s article, we’re going to focus on the value of the restaurant industry, the annual revenues of its sectors and segments, the restaurant’s successful rate, and more.
Keep on reading and find out all about this worthy industry!
8 Key Restaurant Revenue Statistics (Editor’s Pick)
- The full-service restaurant industry was worth $1.2 trillion in 2020.
- The US restaurant industry lost $240 billion in 2020.
- The online food delivery market had a revenue of $126.9 billion.
- The online food delivery market will see an increase of 12.2%.
- In 2019, the fast-casual restaurant market was worth $125 billion.
- Online reviews can boost the restaurant’s revenue by up to 9%.
- 68% of restaurant professionals regularly review sales reports.
- In 2020, Chipotle Mexican Grill had the highest recorded revenue.
32 Restaurant Revenue Statistics
1. In 2020, the full-service restaurant industry made $1.2 trillion.
The full-service restaurant industry was worth $1.2 trillion in 2020 on a global basis. According to Statista, it is estimated that such an industry will be worth up to $1.7 trillion. Now, that is the value of only the full-service restaurant industry. A full-service restaurant is a place where every meal is prepared individually for the customers and then served to them at their table.
Source: Statista and Law Insider
2. The full-service industry had a revenue of over $80 billion in 2020.
If we look at the full-service restaurant industry only in the United States, the revenue there was also quite high in 2020. Statista reported that the industry made a revenue of over $80 billion. That is only the revenue of full-service restaurants. The fast-food industry isn’t included in that high figure, which is important to mention when we’re talking numbers.
3. In a one-year period, the QSR industry’s revenue decreased by more than $130 billion.
The quick-service restaurant industry presents restaurants that serve fast food cuisine and have minimal table service. So basically, QSR presents the fast-food industry. On a global basis, this industry reached its peak in 2019 with a revenue of $868.11 billion. In 2020, that figure decreased due to the bad impact of the COVID-19 pandemic and the industry had a revenue of $736.15 billion. In 2020, it is likely that the fast-food industry exceeded $800 billion worldwide.
4. The fast-food industry’s revenue in the US is finally increasing again.
If we’re going to focus only on the United States, the fast-food industry there had revenue of $256.03 billion in 2020. The year before, in 2019, it was $295.91. That is a huge downfall in the industry’s revenue, especially due to the fact that it presents a one-year difference. However, in 2021, the fast-food or QSR industry had recovered. It is estimated that the revenue for that year will reach $296.55 billion.
5. The US quick-service restaurant industry has increased by more than 50%.
According to data provided by Statista, the US quick-service restaurant industry is a leading contributor to the global restaurant market. The input of the US industry has increased by over 50% since 2007. No doubt that these last couple of years, as well as the upcoming ones, will have a positive impact on that growing trend.
6. The chain restaurant sector had a revenue of more than $140 billion.
The chain restaurant sector presents a group of restaurants with different locations that share a name and concept. Such sector in the United States was valued at $128.99 billion in 2020. However, that figure is a decrease from the total value in 2019 when the sector was worth $158.86 billion. According to Statista, it is estimated that the chain restaurant sector in the US reached more than $149 billion in 2021.
7. The US foodservice market has a steady growth.
The key foodservice markets are Europe, China, Japan, and the United States. According to ReportLinker, China has the largest foodservice market in the world and it had a massive increase in the last years. The market in the United States also has steady growth. The food service industry in Japan is one of the biggest industries there. In Western Europe, the foodservice market was valued at 427 billion euros in 2016, while the Eastern European market was at 45.6 billion euros.
Source: ReportLinker and Statista
8. Due to the pandemic, the US restaurant industry lost $240 billion in 2020.
Initially, the US restaurant industry was projected to make a revenue of $899 billion in 2020. However, due to the COVID-19 pandemic, the industry lost $240 billion and made only $659 billion in sales. The pandemic has truly negatively impacted the restaurant industry, as well as all other economic sectors and industries.
Source: National Restaurant Association
9. The global online food delivery market is estimated to have a revenue of $126.9 billion in 2021.
The restaurant industry consists of many sectors and segments. One of its most popular sectors in the last years is the online food delivery market. The global online food delivery market has an annual growth rate of 10.3%. In 2020, the market made a revenue of $115.07 billion, while in 2021, it is estimated that the revenue increased to $126.9 billion. This is a growing trend, especially during these times of the COVID-19 pandemic.
10. In the United States, the online food delivery market’s revenue had tripled.
To focus on the numbers in the United States, the online food delivery market’s revenue there tripled in a period of 5 years. According to the data provided by Fundera, in 2020, the online food delivery market made more than $26.5 billion, while back in 2015, the market made $8.7 billion. In 2021, the food delivery revenue was more than $26 billion. The popularity and importance of the market are shown in the number of users too. In 2015, 66 million Americas used online food delivery services, while in 2021, there were 111 million users.
11. The online delivery marker will see a 12.2% increase.
Due to the COVID-19 pandemic, it is estimated that the online food delivery market will see an increase of more than 12.2%. This trend massively impacts the annual restaurant industry’s revenue since it presents a multi-billion-dollar market and in today’s digital world, it is important for restaurants to use trends and technologies in order to attract new consumers and to generate higher revenue.
12. The restaurant industry’s share of the food dollar in the United States is more than 50%.
Americans are known for their love of dining out. According to the data provided by National Restaurant Association, the restaurant industry’s share of the food dollar in the United States is 51%. That is a high percentage of the money spent by the consumers on eating out and consuming restaurant food.
Source: National Restaurant Association
13. High sales in the US restaurant industry are 4% of the country’s gross domestic product.
According to the National Restaurant Association, annual sales in the US restaurant industry are approximately $863 billion. The data stated that this figure presents 4% of the country’s gross domestic product. The United States is known for its high percentage of consumers who eat food outside their home – in the restaurant, car, or on a walk.
Source: National Restaurant Association
14. Fast-casual restaurant market was worth more than $125 billion.
Besides quick-service and full-service restaurants, the restaurant industry also has a sector called the fast-casual restaurant market. This sector presents a concept that offers the convenience of fast food without the full service of fine dining. It has a more inviting sit-down ambiance and often, consumers can build their own meal. This concept also offers better quality ingredients than in classic fast-food restaurants. According to Allied Market Research, the fast-casual restaurant market was valued at $125.6 billion in 2019.
Source: Allied Market Research and Toast
15. The fast-casual restaurant market is expected to have a 10.6% increase.
The already mentioned fast-casual restaurant market is expected to grow and reach $209.1 billion by 2027. That would mean that the industry would register a CAGR of 10.6% from 2021 to 2027. According to Allied Market Research, the low capital costs and higher profit margins result in significant investment in fast-casual restaurants.
Source: Allied Market Research
16. The US fast-casual restaurant market will grow by almost $30 billion by 2025.
If we focus only on the fast-casual restaurant market in the United States, it is estimated that the market will grow by $28.8 billion by 2025. That would be a CAGR of 7.89% in the period time from 2021 to 2025. The market in the US is defined by a comprehensive analysis of the strategies adopted by trends, vendors, drivers, and challenges.
Source: Franchise Help
17. In the United States, the fast-casual restaurant market has grown by more than 500% in the last 20 years.
According to data provided by Franchise Help, the fast-casual restaurant market accounts for less than 10% of the total market. The number and diversity of such restaurants have been expanding all across the country. The data stated that this market has had an outstanding growth of over 500% since 1999.
Source: Franchise Help
18. COVID-19 pandemic has badly impacted the Canadian restaurant industry.
According to Statista, in 2017, the Canadian restaurant industry made revenue of $35.78 billion. COVID-19 pandemic had negatively impacted the industry in Canada in 2020, and the total revenue of the restaurant industry decreased to $22.3 billion. Data from Statista states that in 2021, the revenue was estimated to reach $29.15 billion. These numbers show that the industry in Canada hasn’t recovered yet from the impact of the pandemic.
19. Online reviews can boost the restaurant’s revenue by up to 9%.
Many factors impact the revenue in the restaurant business. According to Pyments and their data, customer reviews have a lot of impact on the restaurants’ revenue. Their data stated that improving customer reviews by half a star can boost the revenue by 5% to 9%. That is quite a high percentage we’re talking about. Data by On the Line stated that 94% of diners base their dining decisions on online reviews. That shows how important the reviews are, as well as how important is this segment for a restaurant business.
Source: Pyments and On the Line
20. Using technology can boost the restaurant’s revenue too.
Speaking of all the factors that may boost the restaurants’ revenue, the usage of the technology is quite important too. According to Presto, by using digital menu boards, the restaurant can increase yearly store sales per unit by $16,000. Besides, digital orders that allow customers to pay via some digital methods such as kiosks, apps, voice assistants, or wearables, make their check size 14% higher.
Source: Presto and Lunchbox
21. As of May 2019, the restaurant performance index sits at 101.6.
The National Restaurant Association makes an annual Restaurant Performance Index report. According to the On the Line, as well as to the mentioned report, the performance index in the United States sits right at 101.6 as of May 2019. When the index is above 100, that means that the key industry indicators are in a period of expansion. This time is considered to be a good period for the growth of the restaurants.
Source: National Restaurant Association and On the Line
22. Restaurants increase their menu prices so they don’t experience money losses.
One of the biggest problems in the restaurant industry is the high turnover rate of 75%. If we’re talking about the fast-food sector, the turnover rate is 150%. The reasons for such high turnover rates are not only tough working conditions but also minimum wage. However, since the wage increased, 65% of restaurants have increased their menu prices so at the end of the year, they could make their average revenue without the losses.
Source: Toast, On the Line, Mashed
23. Almost 70% of restaurant professionals regularly review sales reports.
Sales and labor reports are rather important for every business. According to the data provided by Toast, 68% of restaurant professionals review sales reports on a regular basis. 45% of them regularly review labor reports, while 32% of them regularly review menu reports. 17% of restaurant professionals don’t check any of these reports regularly. However, reviewing these and similar reports can be quite beneficial for the business and it can impact the revenue at the end of the year. Especially if the business owner notices some mistake or possible improvements.
24. A newly opened restaurant makes a bit more than $111,000 per month.
A newly opened restaurant will probably struggle a bit for the first couple of months, perhaps even years. According to Toast, such restaurants that are open for less than 12 months have an average monthly revenue of $111,860.70. On the Line stated that the cost of starting a restaurant is an average of $375,000. With that in mind, and including operating expenses, many newly opened restaurants will have to struggle and work hard to have a positive revenue at the end of the year.
Source: Toast and On the Line
25. Within the first 5 years into the business, 80% of the restaurants close.
When we’re talking about the restaurant success rate, the National Restaurant Association estimates that a 30% failure rate is the norm in the US restaurant industry. That means that 30% of restaurants fail or change ownership in the first year of being opened. That number jumps to 60% of the restaurants in three years, while 80% of them go down within the first five years. Even though the failure numbers look rather high, the success rate of the restaurant is as for any other business.
26. McDonald’s revenue in 2021 was $22.16 billion.
According to the available data and the latest financial reports, McDonald’s current revenue is $22.16 billion. That figure is increased since the previous year 2020 when the company made $18.86 billion. However, 2020 was really tough year for the industry due to the ongoing COVID-19 pandemic, and a figure made that year was actually decreased from 2019 when McDonald’s made $21.07 billion. Despite that, McDonald’s revenue is back at its positive course.
27. Restaurant Brand International had an 11% increase in sales.
The data provided by QSR Web stated that Restaurant Brand International, which owns 4 world’s most iconic quick-service restaurants Burger King, Popeyes, Tim Hortons, and Firehouse Subs, had seen a growth of 11% in sales in the third quarter of 2021. We can’t help but notice the big increase in sales and popularity of the quick-service restaurant market in the last couple of years. The high figures and growth rate were impacted by the COVID-19 pandemic too, especially if we’re talking about the increase in online ordering and delivery which is safer for the consumers during the ongoing pandemic.
Source: QSR Web
28. Burger King’s sales and total revenue exceeded the expectations.
Burger King is a quite popular company and dining place. According to Reuters, comparable sales at Burger King in the United States increased by 13% from the previous year. That increase is above the estimates of 12.3%, as well as above the pre-pandemic levels. Rather positive news for the entire company.
29. Burger King made $467 million in the third quarter of 2021.
Let’s speak about the actual numbers. In 2019, Burger King had revenue of $22.9 billion. In 2020, the year when the COVID-19 pandemic hit, the sales decreased and the company’s revenue was $20.038 billion. While we’re still waiting for the official financial report for 2021, we can only mention the sales from the third quarter of 2021. Then, Burger King made a revenue of $467 million. That is a growth of 7.9% compared to the prior-year quarter.
30. In 2020, Chipotle Mexican Grill had the highest recorded revenue in the history of the company.
Chipotle Mexican Grill was also impacted by the COVID-19 pandemic, however, the impact was positive. According to the data provided by Trefis, Chipotle’s total revenue has grown by 24.6% from 2016 to 2018. Back in 2016, the company made $3.9 billion while in 2018, $4.9 billion. In 2020, when the pandemic hit, Chipotle made the highest recorded revenue ever – the total amount was almost $6 billion.
Source: Trefis and Statista
31. In 2019, Olive Garden was the leading casual dining restaurant chain in the US.
Casual dining restaurants present places with a very relaxed atmosphere but still are a step up from the fast-food and fast-casual restaurants. This concept generally has table service. According to the data provided by Statista, in 2019, Olive Garden was the leading casual dining restaurant chain in the United States. The restaurant had revenue of $4.3 billion.
Source: First Research and Statista
32. Applebee’s lost $960 million in 2020.
Still speaking of casual dining restaurants, right after the Oliver Garden was Applebee’s. Back in 2019, the company made a revenue of almost $4.1 billion. In 2020, Applebee’s made $2.99 billion, $960 million less than the previous year. The decrease can be described as the negative impact of the COVID-19 pandemic.
To Wrap It Up
The restaurant industry has been impacted by the COVID-19 pandemic, however, one of its sectors, the online food delivery market, has seen a massive increase in its annual revenue due to the pandemic. Despite the negative influence of the COVID, the industry is slowly recovering, and no doubt that the revenue and sales reports will more than exceed the pre-pandemic results once the world is back to normal. The industry still has many possibilities for growth, especially regarding its digital offer and technology trends.