Research
June 17, 2025
Total restaurant industry sales
Consumers pulled back on restaurant spending in May
For the first time since sentiment started deteriorating in the face of uncertainties around tariffs and inflation, consumers significantly pulled back on spending.
Eating and drinking places* registered total sales of $97.4 billion on a seasonally adjusted basis in May, according to preliminary data from the U.S. Census Bureau. That was 0.9% below the downward-revised sales volume of $98.3 billion in April.
May marked the first restaurant sales decline in three months and the largest monthly drop in more than two years. Despite the pullback, total consumer spending in restaurants stood 5.3% above year-ago levels in May. That represented the third consecutive month with 12-month gains above 5%, which indicates that the overall trendline remains generally positive.
It wasn’t just restaurants that were negatively impacted in May, as consumer spending dipped in other areas as well. Auto dealers (-3.5%), building material and garden stores (-2.7%), gas stations (-2.0%), food and beverage stores (-0.7%) and electronics and appliance stores (-0.6%) all saw sales decline in May.
Overall, consumer spending in non-restaurant retail sectors fell 0.9% in May – the largest decline since January.
Restaurant sales growth continues to be driven in large part by menu price gains, but the last few months also saw modest growth on an inflation-adjusted basis.
After adjusting for menu price inflation, eating and drinking place sales were up 1.4% between May 2024 and May 2025. That represented the third consecutive month with real sales growth above 1%.
*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 $97.4 billion on a seasonally adjusted basis in May, according to preliminary data from the U.S. Census Bureau. That was 0.9% below the downward-revised sales volume of $98.3 billion in April.
May marked the first restaurant sales decline in three months and the largest monthly drop in more than two years. Despite the pullback, total consumer spending in restaurants stood 5.3% above year-ago levels in May. That represented the third consecutive month with 12-month gains above 5%, which indicates that the overall trendline remains generally positive.
It wasn’t just restaurants that were negatively impacted in May, as consumer spending dipped in other areas as well. Auto dealers (-3.5%), building material and garden stores (-2.7%), gas stations (-2.0%), food and beverage stores (-0.7%) and electronics and appliance stores (-0.6%) all saw sales decline in May.
Overall, consumer spending in non-restaurant retail sectors fell 0.9% in May – the largest decline since January.
Restaurant sales growth continues to be driven in large part by menu price gains, but the last few months also saw modest growth on an inflation-adjusted basis.
After adjusting for menu price inflation, eating and drinking place sales were up 1.4% between May 2024 and May 2025. That represented the third consecutive month with real sales growth above 1%.
*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.