Research
April 21, 2026
Total restaurant industry sales
Restaurant sales edged higher in March, despite soaring gas prices
Consumer spending held up relatively well across most retail categories in March, despite the added wallet competition from soaring gas prices. Restaurants were among the sectors experiencing growth in March, though the gain was comparatively modest.
Eating and drinking places registered total sales of $100.2 billion on a seasonally adjusted basis in March, according to preliminary data from the U.S. Census Bureau. That was up 0.1% from February’s sales volume of $100.1 billion.
Even though it was a modest gain, the fact that restaurant sales continued to rise was a positive sign, as consumers devoted a much larger portion of their monthly expenditures to gasoline in March. Consumers spent over $8 billion more at gasoline stations in March than they did in February – a 15.5% increase.
The surge in spending at gas stations resulted in a 1.6% increase in total retail sales – the strongest monthly gain since January 2023. Sales in other retail categories also rose in March, led by department stores (+4.2%), furniture stores (+2.2%), nonstore retailers (+1.0%) and electronics and appliance stores (+0.9%).
Changes to federal income tax laws – including both larger tax refunds and lower tax withholdings – likely helped many consumers absorb the higher pump prices and continue spending in other areas in March. At the same time, this will result in a faster depletion of tax refunds, which were expected to be a catalyst for consumer activity for several months in 2026.
Although pump prices retreated somewhat from the recent highs reached during the first half of April, they remain more than a dollar above where they were in late February. That will continue to test the resilience of consumers, who are already contending with a weakening labor market.
March represented the second consecutive restaurant sales increase after declining in three of the previous four months. The recent slowdown led to a modest 2.4% sales gain on a year-over-year basis – the smallest 12-month increase since the end of the pandemic losses in early 2021. At the same time, the dampened 12-month increase was also influenced by stronger comparisons in March 2025.
While nominal sales growth slowed in recent months, growth in menu prices remained firm. As a result, real eating and drinking place sales were down 1.3% from the March 2025 level, though the prevailing trendline was essentially flat during the last several months.
Note: Eating and drinking places are the primary component of the U.S. restaurant and foodservice industry and represent approximately 72% of total restaurant and foodservice sales.
Eating and drinking places registered total sales of $100.2 billion on a seasonally adjusted basis in March, according to preliminary data from the U.S. Census Bureau. That was up 0.1% from February’s sales volume of $100.1 billion.
Even though it was a modest gain, the fact that restaurant sales continued to rise was a positive sign, as consumers devoted a much larger portion of their monthly expenditures to gasoline in March. Consumers spent over $8 billion more at gasoline stations in March than they did in February – a 15.5% increase.
The surge in spending at gas stations resulted in a 1.6% increase in total retail sales – the strongest monthly gain since January 2023. Sales in other retail categories also rose in March, led by department stores (+4.2%), furniture stores (+2.2%), nonstore retailers (+1.0%) and electronics and appliance stores (+0.9%).
Changes to federal income tax laws – including both larger tax refunds and lower tax withholdings – likely helped many consumers absorb the higher pump prices and continue spending in other areas in March. At the same time, this will result in a faster depletion of tax refunds, which were expected to be a catalyst for consumer activity for several months in 2026.
Although pump prices retreated somewhat from the recent highs reached during the first half of April, they remain more than a dollar above where they were in late February. That will continue to test the resilience of consumers, who are already contending with a weakening labor market.
March represented the second consecutive restaurant sales increase after declining in three of the previous four months. The recent slowdown led to a modest 2.4% sales gain on a year-over-year basis – the smallest 12-month increase since the end of the pandemic losses in early 2021. At the same time, the dampened 12-month increase was also influenced by stronger comparisons in March 2025.
While nominal sales growth slowed in recent months, growth in menu prices remained firm. As a result, real eating and drinking place sales were down 1.3% from the March 2025 level, though the prevailing trendline was essentially flat during the last several months.
Note: Eating and drinking places are the primary component of the U.S. restaurant and foodservice industry and represent approximately 72% of total restaurant and foodservice sales.