Research
August 15, 2025
Total restaurant industry sales
Consumer spending in restaurants plateaued in recent months
Eating and drinking places registered total sales of $98.3 billion on a seasonally adjusted basis in July, according to preliminary data from the U.S. Census Bureau. That was down 0.4% from June’s sales volume of $98.7 billion.
Zooming out a bit, consumer spending in restaurants remained relatively flat during the last few months. A 0.6% sales increase in June was sandwiched between declines in May (-0.2%) and July (-0.4%).
Meanwhile, consumer spending in non-restaurant retail sectors jumped 0.7% in July, which followed a healthy 0.9% increase in June. It’s clear that consumers still have an appetite to spend money, but they remain selective in where they choose to allocate their dollars on a month-to-month basis.
Overall, eating and drinking place sales were up 5.6% between July 2024 and July 2025. That was nearly 2 full percentage points above the 3.7% gain in sales in non-restaurant retail sectors during the same period.
The July sales report confirms that consumer spending continues to hold up relatively well, even amid a backdrop of elevated uncertainty. However, with the labor market showing signs of cracking, the consumer resilience that fueled the economy in recent years will certainly be tested.
Despite the recent slowdown, the expectation is that the economic expansion will remain intact. This will give consumers the financial wherewithal to continue spending in restaurants.
On an inflation-adjusted basis, eating and drinking place sales stood 1.6% above their year-ago levels in July, which means nominal sales outstripped growth in menu prices during that period.
However, a more recent timeframe reveals a gradual downturn in real restaurant sales. On an inflation-adjusted basis, eating and drinking place sales in July were down 0.9% from their recent peak in April.
*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.
Zooming out a bit, consumer spending in restaurants remained relatively flat during the last few months. A 0.6% sales increase in June was sandwiched between declines in May (-0.2%) and July (-0.4%).
Meanwhile, consumer spending in non-restaurant retail sectors jumped 0.7% in July, which followed a healthy 0.9% increase in June. It’s clear that consumers still have an appetite to spend money, but they remain selective in where they choose to allocate their dollars on a month-to-month basis.
Overall, eating and drinking place sales were up 5.6% between July 2024 and July 2025. That was nearly 2 full percentage points above the 3.7% gain in sales in non-restaurant retail sectors during the same period.
The July sales report confirms that consumer spending continues to hold up relatively well, even amid a backdrop of elevated uncertainty. However, with the labor market showing signs of cracking, the consumer resilience that fueled the economy in recent years will certainly be tested.
Despite the recent slowdown, the expectation is that the economic expansion will remain intact. This will give consumers the financial wherewithal to continue spending in restaurants.
On an inflation-adjusted basis, eating and drinking place sales stood 1.6% above their year-ago levels in July, which means nominal sales outstripped growth in menu prices during that period.
However, a more recent timeframe reveals a gradual downturn in real restaurant sales. On an inflation-adjusted basis, eating and drinking place sales in July were down 0.9% from their recent peak in April.
*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.