Research
February 14, 2025
Total restaurant industry sales
Restaurant sales registered a healthy gain in January
Eating and drinking place sales posted a robust increase in January, as resilient consumers continued to prioritize restaurants in their spending decisions.
Eating and drinking places* registered total sales of $98.6 billion on a seasonally adjusted basis in January, according to preliminary data from the U.S. Census Bureau. That was up 0.9% from December’s upward-revised sales volume of $97.7 billion.
January represented the 10th consecutive month of sales gains, which saw the sector’s monthly sales volume rise by nearly $5 billion. As a result of the steady gains in recent months, eating and drinking place sales stood 5.4% above their year-ago levels.
Restaurants were one of the few bright spots in an otherwise downbeat sales report in January, as spending in non-restaurant retail sectors fell 1.2%. That was largely the result of sharp declines in categories such as sporting goods and hobby stores (-4.6%), auto dealers (-2.8%), non-store retailers (-1.9%), home furnishings (-1.7%), home improvement stores (-1.3%) and clothing stores (-1.2%).
Consumers on the aggregate were in a generally positive financial position as the calendar flipped to 2025, as both employment and wages continued to rise at a healthy pace. However, household balance sheets are becoming stressed for some, with debt levels rising and savings rates declining. Still, the outlook for consumers is cautiously optimistic for the months ahead, as the labor market expansion is expected to remain intact.
The upward trajectory of inflation-adjusted sales was somewhat less robust in recent months, as menu prices continued to rise at a moderate pace. After adjusting for menu price inflation, eating and drinking place sales rose 2.0% between January 2024 and January 2025. The sizable real sales increase – the strongest 12-month gain in nearly a year – was due in large part to a weak January 2024 sales performance.
*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 $98.6 billion on a seasonally adjusted basis in January, according to preliminary data from the U.S. Census Bureau. That was up 0.9% from December’s upward-revised sales volume of $97.7 billion.
January represented the 10th consecutive month of sales gains, which saw the sector’s monthly sales volume rise by nearly $5 billion. As a result of the steady gains in recent months, eating and drinking place sales stood 5.4% above their year-ago levels.
Restaurants were one of the few bright spots in an otherwise downbeat sales report in January, as spending in non-restaurant retail sectors fell 1.2%. That was largely the result of sharp declines in categories such as sporting goods and hobby stores (-4.6%), auto dealers (-2.8%), non-store retailers (-1.9%), home furnishings (-1.7%), home improvement stores (-1.3%) and clothing stores (-1.2%).
Consumers on the aggregate were in a generally positive financial position as the calendar flipped to 2025, as both employment and wages continued to rise at a healthy pace. However, household balance sheets are becoming stressed for some, with debt levels rising and savings rates declining. Still, the outlook for consumers is cautiously optimistic for the months ahead, as the labor market expansion is expected to remain intact.
The upward trajectory of inflation-adjusted sales was somewhat less robust in recent months, as menu prices continued to rise at a moderate pace. After adjusting for menu price inflation, eating and drinking place sales rose 2.0% between January 2024 and January 2025. The sizable real sales increase – the strongest 12-month gain in nearly a year – was due in large part to a weak January 2024 sales performance.
*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.