Research
August 14, 2026
Total restaurant industry sales
Restaurant sales rose for the fourth consecutive month in July
Restaurant sales registered a moderate increase in July, even as gas prices ticked higher during the month.
Eating and drinking places registered total sales of $103.6 billion on a seasonally adjusted basis in July, according to preliminary data from the U.S. Census Bureau. That was up 0.5% from June’s upward-revised sales volume of $103.0 billion.
July marked the fourth consecutive monthly sales increase – a period during which monthly volume jumped by more than $3 billion. Restaurant sales stood 5.0% above their year-ago level in July. That represented the strongest 12-month gain since February (5.6%).
The recent upward trajectory in restaurant sales is a positive sign, as elevated gas prices continued to garner an outsized share of consumers’ budget relative to a few months ago.
After trending gradually lower throughout much of June, pump prices reversed course in July and once again breached the $4 threshold. The national average for a gallon of regular gasoline has now been near or above $4 for more than four months, which puts strain on household budgets.
An additional headwind facing consumers and restaurants is a weaker labor market, which deteriorated in recent months after an encouraging start to the year. A healthy labor market is the key driver of restaurant sales, as it generates the income required to support spending as well as the need for the convenient options that the industry provides consumers on a daily basis.
Despite the challenges, the expectation is that restaurants will remain in moderate growth environment in the months ahead, as resilient consumers continue to prioritize restaurants in their spending decisions. Any labor market improvements or gas price reductions would likely add upside to the sales outlook as the calendar flips to 2027.
Beyond restaurants, consumer spending in other retail categories was a mixed bag in July. Non-store retailers (-2.2%), motor vehicles and parts dealers (-1.8%), gasoline stations (-0.9%) and electronics and appliance stores (-0.5%) all saw sharp declines in July. That led to a 0.8% decline in non-restaurant retail sales during the month.
Other smaller retail sectors experienced sales gains in July, including clothing and accessories stores (+1.9%), health and personal care stores (+0.7%) and miscellaneous store retailers (+0.5%). Sales also rose modestly at building material and garden supply stores, department stores, furniture stores, and general merchandise stores.
In addition to improving sales growth in nominal terms, the restaurant industry is also seeing positive results on an inflation-adjusted basis. Real eating and drinking place sales increased 1.6% between July 2025 and July 2026. That represented the strongest 12-month gain in five 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 $103.6 billion on a seasonally adjusted basis in July, according to preliminary data from the U.S. Census Bureau. That was up 0.5% from June’s upward-revised sales volume of $103.0 billion.
July marked the fourth consecutive monthly sales increase – a period during which monthly volume jumped by more than $3 billion. Restaurant sales stood 5.0% above their year-ago level in July. That represented the strongest 12-month gain since February (5.6%).
The recent upward trajectory in restaurant sales is a positive sign, as elevated gas prices continued to garner an outsized share of consumers’ budget relative to a few months ago.
After trending gradually lower throughout much of June, pump prices reversed course in July and once again breached the $4 threshold. The national average for a gallon of regular gasoline has now been near or above $4 for more than four months, which puts strain on household budgets.
An additional headwind facing consumers and restaurants is a weaker labor market, which deteriorated in recent months after an encouraging start to the year. A healthy labor market is the key driver of restaurant sales, as it generates the income required to support spending as well as the need for the convenient options that the industry provides consumers on a daily basis.
Despite the challenges, the expectation is that restaurants will remain in moderate growth environment in the months ahead, as resilient consumers continue to prioritize restaurants in their spending decisions. Any labor market improvements or gas price reductions would likely add upside to the sales outlook as the calendar flips to 2027.
Beyond restaurants, consumer spending in other retail categories was a mixed bag in July. Non-store retailers (-2.2%), motor vehicles and parts dealers (-1.8%), gasoline stations (-0.9%) and electronics and appliance stores (-0.5%) all saw sharp declines in July. That led to a 0.8% decline in non-restaurant retail sales during the month.
Other smaller retail sectors experienced sales gains in July, including clothing and accessories stores (+1.9%), health and personal care stores (+0.7%) and miscellaneous store retailers (+0.5%). Sales also rose modestly at building material and garden supply stores, department stores, furniture stores, and general merchandise stores.
In addition to improving sales growth in nominal terms, the restaurant industry is also seeing positive results on an inflation-adjusted basis. Real eating and drinking place sales increased 1.6% between July 2025 and July 2026. That represented the strongest 12-month gain in five 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.