Research
January 16, 2025
Total restaurant industry sales
Restaurant sales edged lower in December, but measures of pent-up demand remain elevated.
Restaurant sales ticked lower in December, but gains in other retail categories suggest consumers remain resilient and willing to spend.
Eating and drinking places* registered total sales of $96.9 billion on a seasonally adjusted basis in December, according to preliminary data from the U.S. Census Bureau. That was down 0.3% from November’s upward-revised sales volume of $97.2 billion.
December’s downtick followed eight consecutive months of gains, which saw the sector’s monthly sales volume rise by more than $3.5 billion.
Consumers didn’t completely put away their pocketbooks in December, as spending in non-restaurant retail sectors increased 0.6%. That was driven by solid growth in categories such as sporting goods (+2.6%), home furnishings (+2.3%), clothing stores (+1.5%) and gas stations (+1.5%).
While overall consumer spending in restaurants trended higher during much of 2024, average menu prices rose at a slightly stronger pace. As a result, real restaurant sales lost ground relative to 2023 levels. After adjusting for menu price inflation, eating and drinking place sales declined 1.2% between December 2023 and December 2024.
Pent-up demand ticked higher
Overall restaurant sales plateaued at the end of 2024, but the National Restaurant Association’s measure of on-premises pent-up demand for ticked higher. Forty-eight percent of adults say they are not going out to restaurants as often as they would like, according to a survey fielded January 10-12, 2025. That was up from 42% of consumers who reported similarly in September 2024.
Meanwhile, 37% of adults say they are not ordering takeout or delivery from restaurants as often as they would like. That was on par with recent surveys.
Members of Generation X are the most likely to say they aren’t using restaurants enough. Fifty-eight percent of Gen Xers say they are not eating on premises at restaurants as often as they would like. Only 4 in 10 Gen Z adults reported similarly.
Gen Xers are also the most likely to say they are not ordering takeout or delivery from restaurants as often as they would like.
Pent-up demand is higher among lower-income households, with a majority of consumers in households with income below $50,000 saying they would like to go out to restaurants more frequently. Nearly half report similarly about ordering takeout and delivery.
Meanwhile, 36% of adults living in households with income above $100,000 say they are not going out to restaurants as often as they would like.
Any amount of unfulfilled demand among higher-income households is an important indicator for restaurants, as this demographic group represents the majority of spending in the industry.
According to data from the Bureau of Labor Statistics, households with incomes of $200,000 or higher are responsible for 24% of the total spending on food away from home, while households with incomes between $100,000 and $199,999 account for 35% of industry spending.
Taken together, households with income above $100,000 are responsible for nearly 6 in 10 dollars spent in restaurants.
*Eating and drinking places are the primary component of the U.S. restaurant and foodservice industry and represent approximately 75% of total restaurant and foodservice sales. Monthly sales figures presented above represent total revenues at all eating and drinking place establishments. This differs from the National Restaurant Association’s sales projections, which represent food and beverage sales at establishments with payroll employees.
Eating and drinking places* registered total sales of $96.9 billion on a seasonally adjusted basis in December, according to preliminary data from the U.S. Census Bureau. That was down 0.3% from November’s upward-revised sales volume of $97.2 billion.
December’s downtick followed eight consecutive months of gains, which saw the sector’s monthly sales volume rise by more than $3.5 billion.
Consumers didn’t completely put away their pocketbooks in December, as spending in non-restaurant retail sectors increased 0.6%. That was driven by solid growth in categories such as sporting goods (+2.6%), home furnishings (+2.3%), clothing stores (+1.5%) and gas stations (+1.5%).
While overall consumer spending in restaurants trended higher during much of 2024, average menu prices rose at a slightly stronger pace. As a result, real restaurant sales lost ground relative to 2023 levels. After adjusting for menu price inflation, eating and drinking place sales declined 1.2% between December 2023 and December 2024.
Pent-up demand ticked higher
Overall restaurant sales plateaued at the end of 2024, but the National Restaurant Association’s measure of on-premises pent-up demand for ticked higher. Forty-eight percent of adults say they are not going out to restaurants as often as they would like, according to a survey fielded January 10-12, 2025. That was up from 42% of consumers who reported similarly in September 2024.
Meanwhile, 37% of adults say they are not ordering takeout or delivery from restaurants as often as they would like. That was on par with recent surveys.
Members of Generation X are the most likely to say they aren’t using restaurants enough. Fifty-eight percent of Gen Xers say they are not eating on premises at restaurants as often as they would like. Only 4 in 10 Gen Z adults reported similarly.
Gen Xers are also the most likely to say they are not ordering takeout or delivery from restaurants as often as they would like.
Pent-up demand is higher among lower-income households, with a majority of consumers in households with income below $50,000 saying they would like to go out to restaurants more frequently. Nearly half report similarly about ordering takeout and delivery.
Meanwhile, 36% of adults living in households with income above $100,000 say they are not going out to restaurants as often as they would like.
Any amount of unfulfilled demand among higher-income households is an important indicator for restaurants, as this demographic group represents the majority of spending in the industry.
According to data from the Bureau of Labor Statistics, households with incomes of $200,000 or higher are responsible for 24% of the total spending on food away from home, while households with incomes between $100,000 and $199,999 account for 35% of industry spending.
Taken together, households with income above $100,000 are responsible for nearly 6 in 10 dollars spent in restaurants.
*Eating and drinking places are the primary component of the U.S. restaurant and foodservice industry and represent approximately 75% of total restaurant and foodservice sales. Monthly sales figures presented above represent total revenues at all eating and drinking place establishments. This differs from the National Restaurant Association’s sales projections, which represent food and beverage sales at establishments with payroll employees.