Research
December 17, 2024
Total restaurant industry sales
Restaurant sales declined for the first time in 8 months
Restaurant sales registered a modest decline in November, which interrupted the positive trajectory established during the last several months.
Eating and drinking places* registered total sales of $96.7 billion on a seasonally adjusted basis in November, according to preliminary data from the U.S. Census Bureau. That was down 0.4% from October’s downward revised sales volume of $97.1 billion.
November’s sales decline came on the heels of seven consecutive monthly gains, the strongest of which were registered in the last four months.
Consumer spending in non-restaurant retail sectors held up much better, with total sales rising 0.9% between October and November. However, that was largely due to robust gains in the auto (+2.6%) and ecommerce (+1.8%) categories.
While overall restaurant sales dipped in November, menu prices continued to rise. As a result, real restaurant sales were down from year-ago levels. After adjusting for menu price inflation, eating and drinking place sales declined 1.7% between November 2023 and November 2024.
Pent-up demand is elevated across restaurant occasions
The recent positive sales trajectory may have taken a pause in November, but Association research indicates consumers are not ready to step back from restaurants. Indeed, there is a large pool of consumers ready and willing to use restaurants, as long as employment and income levels continue to rise.
Eighty-one percent of fullservice customers say they would eat out at sit-down tableservice restaurants more often if they had the money available to pay for it. That’s according to a national survey of 1,000 adults fielded in early November.
The desire to increase frequency at fullservice restaurants is strongest among the younger generations, with 89% of millennials, 87% of Gen Z adults and 84% of Gen Xers saying they would like to go out more often.
Pent-up demand is also elevated in the limited-service segment, with 76% of customers saying they would go to quickservice restaurants, snack places, delis or coffee shops more often if they had the money for it.
That includes more than 8 in 10 Gen Z adults, millennials and Gen Xers. Even 62% of baby boomers say they would like to be using limited-service restaurants more often.
Consumers who let the food come to them would like it to arrive more frequently. Eighty-two percent of delivery customers say they would order delivery from restaurants more often if they had the money to do it.
Pent-up demand for delivery was strongest among millennials (89%) and Gen Xers (84%). Nearly 8 in 10 Gen Z adults and 72% of baby boomers would also like to order delivery more often.
*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 $96.7 billion on a seasonally adjusted basis in November, according to preliminary data from the U.S. Census Bureau. That was down 0.4% from October’s downward revised sales volume of $97.1 billion.
November’s sales decline came on the heels of seven consecutive monthly gains, the strongest of which were registered in the last four months.
Consumer spending in non-restaurant retail sectors held up much better, with total sales rising 0.9% between October and November. However, that was largely due to robust gains in the auto (+2.6%) and ecommerce (+1.8%) categories.
While overall restaurant sales dipped in November, menu prices continued to rise. As a result, real restaurant sales were down from year-ago levels. After adjusting for menu price inflation, eating and drinking place sales declined 1.7% between November 2023 and November 2024.
Pent-up demand is elevated across restaurant occasions
The recent positive sales trajectory may have taken a pause in November, but Association research indicates consumers are not ready to step back from restaurants. Indeed, there is a large pool of consumers ready and willing to use restaurants, as long as employment and income levels continue to rise.
Eighty-one percent of fullservice customers say they would eat out at sit-down tableservice restaurants more often if they had the money available to pay for it. That’s according to a national survey of 1,000 adults fielded in early November.
The desire to increase frequency at fullservice restaurants is strongest among the younger generations, with 89% of millennials, 87% of Gen Z adults and 84% of Gen Xers saying they would like to go out more often.
Pent-up demand is also elevated in the limited-service segment, with 76% of customers saying they would go to quickservice restaurants, snack places, delis or coffee shops more often if they had the money for it.
That includes more than 8 in 10 Gen Z adults, millennials and Gen Xers. Even 62% of baby boomers say they would like to be using limited-service restaurants more often.
Consumers who let the food come to them would like it to arrive more frequently. Eighty-two percent of delivery customers say they would order delivery from restaurants more often if they had the money to do it.
Pent-up demand for delivery was strongest among millennials (89%) and Gen Xers (84%). Nearly 8 in 10 Gen Z adults and 72% of baby boomers would also like to order delivery more often.
*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.