Research
March 17, 2025
Total restaurant industry sales
Restaurant Sales Fell 1.5% in February After Being Flat in January
After holding steady in January, sales at eating and drinking places* declined by 1.5% in February, falling from $97.0 billion to $95.5 billion—a seven-month low—according to preliminary data from the U.S. Census Bureau. This drop indicates a pullback in consumer spending on dining out, though it remains unclear whether the decline was driven by poor weather conditions or signals the start of a broader trend, especially as consumer confidence has weakened in recent surveys. The upcoming data for March and April will provide further insight into whether this slowdown continues.
Despite the month-over-month decline, restaurant sales totaled $94.1 billion in February 2024, reflecting a 1.5% year-over-year increase.
After adjusting for inflation, eating and drinking places decreased 2.1% between February 2024 and February 2025, pulled lower by the disappointing figure in this latest data. For comparison, real restaurant sales were 0.7% higher year-over-year in January.
Retail spending edged up by 0.2% in February, showing a modest rebound after a 1.2% decline in January. However, this fell short of the consensus forecast of 0.6% growth, making it a weaker-than-expected result. Gains were seen across several sectors, including nonstore retailers (+2.4%), health and personal care stores (+1.7%), grocery stores (+0.4%), general merchandise stores (+0.2%), and building materials and garden supply stores (+0.2%).
Meanwhile, spending declined at eating and drinking establishments, as well as in categories such as gasoline stations (-1.0%, primarily due to lower prices), clothing and accessories (-0.6%), motor vehicle and parts dealers (-0.4%), sporting goods and hobby stores (-0.3%), and electronics and appliance stores (-0.3%).
*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.
Despite the month-over-month decline, restaurant sales totaled $94.1 billion in February 2024, reflecting a 1.5% year-over-year increase.
After adjusting for inflation, eating and drinking places decreased 2.1% between February 2024 and February 2025, pulled lower by the disappointing figure in this latest data. For comparison, real restaurant sales were 0.7% higher year-over-year in January.
Retail spending edged up by 0.2% in February, showing a modest rebound after a 1.2% decline in January. However, this fell short of the consensus forecast of 0.6% growth, making it a weaker-than-expected result. Gains were seen across several sectors, including nonstore retailers (+2.4%), health and personal care stores (+1.7%), grocery stores (+0.4%), general merchandise stores (+0.2%), and building materials and garden supply stores (+0.2%).
Meanwhile, spending declined at eating and drinking establishments, as well as in categories such as gasoline stations (-1.0%, primarily due to lower prices), clothing and accessories (-0.6%), motor vehicle and parts dealers (-0.4%), sporting goods and hobby stores (-0.3%), and electronics and appliance stores (-0.3%).
*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.