Research
April 04, 2025
Total restaurant industry jobs
Restaurant operators appear to be more cautious in their staffing decisions amid rising economic and policy uncertainty.
Eating and drinking places* added a net 29,800 jobs in March on a seasonally-adjusted basis, according to preliminary data from the Bureau of Labor Statistics (BLS). That followed combined losses of more than 50,000 jobs in January and February – the weakest 2-month period in more than 4 years.
The March rebound in restaurant employment suggests that the January and February job losses were partially the result of poor weather conditions in some parts of the country. However, the recent softness in the restaurant labor market still represented a marked slowdown from the solid gain of 140,000 jobs during the second half of 2024.
Overall in the first quarter, eating and drinking places lost a net 25,500 jobs. That marked the worst quarterly performance since the fourth quarter of 2020, when the industry shed more than 266,000 jobs.
The recent downtick in restaurant employment narrowed the gap that the industry had established above pre-pandemic levels. As of March 2025, the size of the restaurant workforce was 54,500 jobs (or 0.4%) above February 2020 levels.
Staffing decisions impacted by economic uncertainty
Going into the year, restaurant operators were generally bullish about expanding payrolls. When surveyed in November 2024, more than 8 in 10 restaurant operators said they would likely hire additional employees in 2025 if there were qualified applicants available.
That sentiment was consistent across the major restaurant segments, with a solid majority of operators planning to boost staffing levels in 2025.
At the same time, operators planned to keep a watchful eye on business conditions, and many were poised to pause hiring – or even trim payrolls – if needed.
Indeed, two-thirds of operators – including a majority across each of the 6 major segments – said they would likely lay off employees during 2025 if business conditions deteriorated and the economy went into recession.
The economic slowdown in the first quarter, coupled with rising levels of policy uncertainty, likely made many restaurant operators more cautious in their staffing decisions.
Fullservice segment down 255k jobs from pre-pandemic level
Within the restaurant industry, the limited-service segments continue to post the strongest job growth.
The coffee and snack segment has led the way throughout the recovery from pandemic-induced job losses. As of February 2025, employment at snack and nonalcoholic beverage bars – including coffee, donut and ice cream shops – was nearly 162,000 jobs (or 20%) above February 2020 readings.
Employee counts at quickservice and fast casual restaurants were 94,000 jobs (or 2.1%) above pre-pandemic levels.
Staffing levels at bars and taverns were 4,000 jobs (or 1%) above the pre-pandemic peak.
In contrast, fullservice restaurant employment levels were 255,000 jobs (or 4.5%) below pre-pandemic readings, as of February 2025.
[Note that the segment-level employment figures are lagged by one month, so February 2025 is the most current data available.]
Restaurant job growth uneven across states
Fully 5 years after the onset of the pandemic in the U.S., restaurant staffing levels remain below pre-pandemic readings in 21 states and the District of Columbia.
In 5 of those states – West Virginia, Massachusetts, Maryland, Illinois and Vermont – eating and drinking employment is more than 4% below February 2020 levels.
In contrast, restaurant employment in several of the mountain states has soared well beyond pre-pandemic levels. This group is led by Idaho (+13%), Utah (+12%), Montana (+11%), Nevada (+10%) and Arizona (+8%).
View the latest employment data for every state.
*Eating and drinking places are the primary component of the total restaurant and foodservice industry, providing jobs for roughly 80% of the total restaurant and foodservice workforce of more than 15.7 million.
Track more economic indicators and read more analysis and commentary from the Association's economists.
The March rebound in restaurant employment suggests that the January and February job losses were partially the result of poor weather conditions in some parts of the country. However, the recent softness in the restaurant labor market still represented a marked slowdown from the solid gain of 140,000 jobs during the second half of 2024.
Overall in the first quarter, eating and drinking places lost a net 25,500 jobs. That marked the worst quarterly performance since the fourth quarter of 2020, when the industry shed more than 266,000 jobs.
The recent downtick in restaurant employment narrowed the gap that the industry had established above pre-pandemic levels. As of March 2025, the size of the restaurant workforce was 54,500 jobs (or 0.4%) above February 2020 levels.
Staffing decisions impacted by economic uncertainty
Going into the year, restaurant operators were generally bullish about expanding payrolls. When surveyed in November 2024, more than 8 in 10 restaurant operators said they would likely hire additional employees in 2025 if there were qualified applicants available.
That sentiment was consistent across the major restaurant segments, with a solid majority of operators planning to boost staffing levels in 2025.
At the same time, operators planned to keep a watchful eye on business conditions, and many were poised to pause hiring – or even trim payrolls – if needed.
Indeed, two-thirds of operators – including a majority across each of the 6 major segments – said they would likely lay off employees during 2025 if business conditions deteriorated and the economy went into recession.
The economic slowdown in the first quarter, coupled with rising levels of policy uncertainty, likely made many restaurant operators more cautious in their staffing decisions.
Fullservice segment down 255k jobs from pre-pandemic level
Within the restaurant industry, the limited-service segments continue to post the strongest job growth.
The coffee and snack segment has led the way throughout the recovery from pandemic-induced job losses. As of February 2025, employment at snack and nonalcoholic beverage bars – including coffee, donut and ice cream shops – was nearly 162,000 jobs (or 20%) above February 2020 readings.
Employee counts at quickservice and fast casual restaurants were 94,000 jobs (or 2.1%) above pre-pandemic levels.
Staffing levels at bars and taverns were 4,000 jobs (or 1%) above the pre-pandemic peak.
In contrast, fullservice restaurant employment levels were 255,000 jobs (or 4.5%) below pre-pandemic readings, as of February 2025.
[Note that the segment-level employment figures are lagged by one month, so February 2025 is the most current data available.]
Restaurant job growth uneven across states
Fully 5 years after the onset of the pandemic in the U.S., restaurant staffing levels remain below pre-pandemic readings in 21 states and the District of Columbia.
In 5 of those states – West Virginia, Massachusetts, Maryland, Illinois and Vermont – eating and drinking employment is more than 4% below February 2020 levels.
In contrast, restaurant employment in several of the mountain states has soared well beyond pre-pandemic levels. This group is led by Idaho (+13%), Utah (+12%), Montana (+11%), Nevada (+10%) and Arizona (+8%).
View the latest employment data for every state.
*Eating and drinking places are the primary component of the total restaurant and foodservice industry, providing jobs for roughly 80% of the total restaurant and foodservice workforce of more than 15.7 million.
Track more economic indicators and read more analysis and commentary from the Association's economists.