Single Location Full-Service Restaurants 2020

WWW.IBISWORLD.
COM Single Location Full-Service Restaurants in the USOctober 2019 1
This report was provided to

University of North Texas (2133793585)
by IBISWorld on 17 December 2019 in accordance with their license agreement with IBISWorld
NAICS 722511b, SIC 5812.
IBISWorld Industry Report

Single Location Full-Service
Restaurants in the US
October 2019 Rachel Hyland
2 About this Industry 19 International Trade 32 Regulation and Policy

2 Industry Definition 20 Business Locations 33 Industry Assistance
2 Main Activities
2 Similar Industries 22 Competitive Landscape 34 Key Statistics
3 Additional Resources 22 Market Share Concentration 34 Industry Data
22 Key Success Factors 34 Annual Change
4 Industry at a Glance 22 Cost Structure Benchmarks 34 Key Ratios
25 Basis of Competition 35 Industry Financial Ratios
5 Industry Performance 26 Barriers to Entry
5 Executive Summary 26 Industry Globalization 36 Jargon & Glossary
5 Key External Drivers
7 Current Performance 27 Major Companies
10 Industry Outlook 27 Clyde’s Restaurant Group
12 Industry Life Cycle 27 Joe’s Stone Crab
28 Tao Las Vegas
14 Products and Markets
14 Supply Chain 29 Operating Conditions
14 Products and Services 29 Capital Intensity
16 Demand Determinants 30 Technology and Systems
18 Major Markets 31 Revenue Volatility
www.ibisworld.com | 1-800-330-3772 | info @ibisworld.com

WWW.IBISWORLD.COM Single Location Full-Service Restaurants in the USOctober 2019 2
About this Industry
Industry Definition This industry includes single-location, and waitress service) and pay
independent or family-operated after eating. These establishments
restaurants that provide food may sell alcohol and other beverages
services to patrons who order and in addition to providing food services
are served while seated (i.e. waiter to guests.
Main Activities The primary activities of this industry are

Managing owner-operated full-service restaurants
Managing family-operated full-service restaurants
Managing independent-operated (nonchain or nonfranchised) restaurants
The major products and services in this industry are

Asian restaurants
European restaurants
Mexican restaurants
Pizza restaurants
Seafood restaurants
Steakhouses
US restaurants
Other
Similar Industries 44529 Specialty Food Stores in the US

This industry primarily retails confectionery goods and nuts not packaged for immediate consumption.
72211a Chain Restaurants in the US

This industry includes chain or franchised restaurants that serve sit-down meals.
72232 Caterers in the US

This industry includes companies that provide individual event-based food services.
72241 Bars & Nightclubs in the US

This industry includes bars, taverns and nightclubs that prepare and serve alcoholic beverages.
72221b Coffee & Snack Shops in the US

This industry provides food services to patrons that generally order or select items and pay before eating.
72221a Fast Food Restaurants in the US

This industry provides food services to patrons that generally order or select items and pay before eating.
Provided to: University of North Texas (2133793585) | 17 December 2019

About this Industry
Additional Resources For additional information on this industry

www.ift.org
Institute of Food Technologists
www.nrn.com
Nation’s Restaurant News
www.restaurant.org
National Restaurant Association
www.txrestaurant.org
Texas Restaurant Association
Also, local chapters
www.census.gov
US Census Bureau
for SIC and NAICS codes
www.statista.com
Industry graphics
IBISWorld writes over 1000 US

industry reports, which are updated
up to four times a year. To see all
reports, go towww.ibisworld.com

WWW.IBISWORLD.COM Single Location Full-Service Restaurants in the US October 2019 4
Industry at a Glance
Single Location Full-Service Restaurants in 2019
Key Statistics Revenue Annual Growth 14–19 Annual Growth 19–24

Snapshot
$178.6bn 3.2% 1.8%
Profit Wages Businesses
$9.3bn $62.2bn 165,872

Revenue vs. employment growth Consumer spending
Market Share
There are no major 5 4.0
players in this 3.5
4
industry
3.0
3
% change
% change
2.5
2
2.0
1 1.5
0 1.0
Year 11 13 15 17 19 21 23 25 Year 14 16 18 20 22 24 26
Revenue Employment
SOURCE: WWW.IBISWORLD.COM
p. 27
Products and services segmentation (2019)
Key External Drivers

6.7% 3.0%
Pizza Steakhouses
Consumer spending
Households earning 7.0%
restaurants
24.8%
Asian restaurants
Other
more than $100,000
Consumer
confidence index 7.1%
Seafood restaurants
Healthy eating index
13.1%
Mexican restaurants
22.6%
US restaurants
p. 5
15.7%
European restaurants SOURCE: WWW.IBISWORLD.COM
Industry Structure Life Cycle Stage Mature Regulation Level Medium

Revenue Volatility Low Technology Change Low
Capital Intensity Low Barriers to Entry Low
Industry Assistance Low Industry Globalization Low
Concentration Level Low Competition Level High
FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 34

Industry Performance
Executive Summary | Key External Drivers | Current Performance
Industry Outlook | Life Cycle Stage
Executive Summary The Single Location Full-Service run businesses, which causes the industry
Restaurants industry has experienced to be highly fragmented and exceedingly
steady growth over the five years to 2019. competitive. Single-location restaurants
Since 2014, the growing domestic experience heavy competition from other
economy and rising consumer spending food service providers and directly
have led to consistent increases in compete with chain restaurants, fast food
consumers spending money on food away restaurants, hotels and other coffee and
from home. This has increased full- snack stores. For this reason, profit is
service restaurant spending. The fine generally low across the industry.
dining segment has done particularly well Nonetheless, the average industry
over the past five years due to solid profit margin has increased over the
growth in the income levels of affluent past five years due to increases in
consumers and an expanding corporate demand and decreasing input costs,
market. Conversely, restaurants at the such as food expenses.
lower end of the market have struggled The industry’s steady growth is
expected to continue over the five years
to 2024 as consumer spending grows.
Operatorshave experienced heavy Consumer spending is expected to
competition from other food increase an annualized 2.0% over the
five years to 2024. Despite the optimal
service providers operating conditions, industry
restaurants will need to monitor and
with low growth as consumers have adjust to shifting consumer preferences.
traded down to the innovative products Rising health consciousness and ethical
served by a growing number of new consumerism will present industry
high-quality fast-casual chains. Over the operators with ongoing opportunities to
five years to 2019, IBISWorld expects reach niche markets with premium
industry revenue to grow an annualized products to increase profitability and
3.2% to $178.6 billion. In 2019 alone, revenue. The industry will also likely
revenue is expected to increase 2.5%. benefit from population and
The industry competes in the broader immigration growth, as well as a greater
food service market and consists of number of people living in urban areas
owner-operated restaurants that are where restaurants are highly
independent of chain or franchised concentrated. Over the five years to
networks. Due to the nature of being a 2024, industry revenue is forecast to
single-location establishment, the grow at an annualized rate of 1.8% to
majority of operators are small, family- $195.5 billion.
Key External Consumer Consumer spending Consumer spending is expected to

Economic Drivers Factors that influence the growth of increase in 2019, presenting a potential
consumer spending, such as taxes, opportunity for the industry.
consumer sentiment and oil prices, also
affect demand for this industry. Households earning more than $100,000
Additionally, any spike in unemployment Full-service restaurants tend to draw
generally leads to a decline in spending. their customers from higher-income
Conversely, when economic conditions households. Given this factor, growth in
are good, consumers will be more likely the number of households earning more
to spend money on eating at restaurants. than $100,000 annually will benefit the

Key External Consumer industry. The number of households they are more likely to spend money
Economic Drivers, cont. earning more than $100,000 annually is eating away from home. The Consumer
expected to increase in 2019. Confidence Index is expected to decrease
in 2019, posing a potential threat to
Consumer confidence index industry operators.
Changes in consumer confidence have a
significant effect on household Healthy eating index
expenditure on discretionary items, Consumers are becoming increasingly
including restaurant dining. When aware of issues related to weight and
consumers have a negative outlook on obesity, fatty food intake and food safety
the domestic economy, demand for issues. Consumers are now more aware of
lower-priced value products from the health issues associated with fatty foods
restaurants increases, driving revenue and are increasingly going out of their way
down. Conversely, when consumers have to avoid them. The healthy eating index is
an optimistic outlook on the economy, expected to decline slightly in 2019.
Consumer spending Households earning more than $100,000
4.0 32
3.5 30
3.0
28
% change
2.5
%
26
2.0
1.5 24
1.0 22
Year 14 16 18 20 22 24 26 Year 11 13 15 17 19 21 23 25

Current The Single Location Full-Service

Restaurants industry has experienced Industry revenue
Performance steady growth over the five years to 2019
5
as consumers have increased their
appetite for local single-location
4
restaurants. During the five-year period,
per capita disposable income has
% change
experienced solid growth, especially for 3
households with incomes of more than
$100,000, which represent a large 2
market for industry establishments and
are more likely to spend money at 1
full-service restaurants. As a result, Year 11 13 15 17 19 21 23 25
many consumers who typically opt for
more cost-efficient chain establishments SOURCE: WWW.IBISWORLD.COM
or quick-service meal options have

traded up to more local full-service profit margin. Over the five years to
establishments. While the industry 2019, industry revenue is expected to
remains highly competitive, price grow at an annualized rate of 3.2% to
competition has eased somewhat as total $178.6 billion; this includes
consumers have increased spending, an anticipated 2.5% revenue boost
leading to a higher average industry in 2019 alone.
Dining alternatives Despite the industry’s growth, single- that some purchase costs for operators
present challenges location, full-service restaurants have have decreased, it has also encouraged
experienced some significant challenges. some consumers to increase overall
In 2016, annual spending on food at spending on food to cook at home
restaurants exceeded spending on because it is more cost efficient. This
groceries for the first time, according to decreases the number of consumers who
data from the US Department of have sought to eat outside the home,
Agriculture. Nevertheless, operators have siphoning demand for industry operators
been threatened by the ever-growing whose average check is slightly higher
number of establishments with than that of their chain full-service,
increasingly diverse menus, both within fast-casual and fast food competitors.
and outside of the industry. As Additionally, many consumers to seek
consumers have a growing number of alternatives to industry restaurants by
options to choose from when dining out, searching for deals online, at
industry establishments have to work supermarkets and at traditional quick-
harder to maintain their share of the service establishments with revamped,
market. This growing threat is also healthier menus.
derived from consumers cooking meals at Furthermore, fast-casual restaurants
home. Over the five years to 2019, the that do not offer table service but offer
agricultural price index, which measures higher-quality food and ambiance
the price of US-produced agriculture compared with a fast-food restaurant
products, fell an annualized 5.1%, have experienced particularly strong
indicating that the price of many US growth. These restaurants have become
foods has decreased. While this means increasingly popular with consumers

Dining alternatives because they offer convenient, gourmet prices downward for industry operators.
present challenges food at an affordable price. The average Moreover, start-ups such as Blue Apron
American is working longer hours than Holdings Inc. and other meal-delivery
continued
ever before, and many do not have time services, which capitalize on leaving
to sit down for a meal at industry full- consumers with the responsibility of final
service restaurants. Consequently, preparation, have also challenged overall
prepared food in supermarkets, such as industry demand. These services provide
Whole Foods Market Inc., has increased a wider array of gourmet options to
in popularity, becoming ubiquitous in consumers who still seek convenience,
major metropolitan areas and pressuring yet prefer to not eat away from home.
Changing consumer Full-service restaurants have had to

preferences contend with changing consumer Full-service
restaurants
preferences over the past five years.
Despite growing competition, demand
have had to contend
has been increasing for independent with changing consumer
operators amid changing consumer preferences
preferences. Over the past five years,
consumers have increasingly preferred
to patronize local establishments Consumers are also increasingly health
oriented around a single chef or conscious and environmentally conscious
singular concept rather than large, and want to eat healthy, local produce.
homogenous chains with stale menu Due to these rising trends, restaurants
and decor concepts, according to have expanded the number of healthy
reporting from Bloomberg options on their menus and sourced more
Businessweek, which uses data from of their ingredients from local providers.
consulting firms Technomic Inc. and This trend has caused an increase in the
Pentallect Inc. Furthermore, Yelp Inc. number of farm-to-table restaurant
did an independent review of full- concepts throughout the United States.
service restaurants using its own For many restaurants, the health factor
internal data found similar trends, has become a key focus of their
concluding Americans are increasingly marketing strategy and has enabled them
preferring independent restaurants to target a new segment of the market
over chain enterprises. and renew interest in their products.
Input prices affect Despite the industry’s uptick in demand, premium inputs despite severe changes
profit it has been negatively affected by volatile in cost. However, food prices are at
food and beverage costs. Purchases record lows, which has offset some of the
represent 32.3% of industry revenue, increases due to this premiumization.
with a large portion of this cost coming During the current five-year period the
from purchasing high-quality food agricultural price index fell an annualized
inputs. Since many restaurants 5.1%, which helped to reduce purchase
differentiate themselves from each other costs of industry operators.
by the quality of the products they offer, The continued increase in competition
industry operators continue to buy has encouraged restaurants to improve

Input prices affect their quality of service, resulting in share of revenue to decreased during
profit continued industry employment increasing at an the five-year period. This decline, in
annualized rate of 2.5% to 3.2 million addition to the falling purchase costs, has
workers over the five years to 2019. Labor helped profit, measured as earnings
costs can be managed by bringing on before interest and taxes, expand slightly
trained casual and part-time staff at peak over the past five years as they are
guest periods. Operators being able to expected to account for an estimated
employ more part-time staff has enabled 5.2% of total revenue in 2019, up from
the average industry wage expenses as a 4.9% in 2014.
Turnover and burnout There is a high level of turnover

among industry operators, with There
is a high level of
various new restaurants replacing turnover among industry
unprofitable establishments in any
given year. Some restaurants are operators
open seven days per week, providing
very little time for rest and leisure There are few significant barriers to
for owner-operators working full success for the industry, which leads to
time. This factor alone accounts for a fierce internal competition. In many
high turnover of businesses as owner areas of the country, the industry has
burnout is common. Given the relatively reached a saturation point, as the local
low average profit for most operators, population can no longer support more
the industry is highly sensitive to restaurants. In addition, owner-operated
external and internal factors that affect restaurants must contend with significant
financial performance, including competition. Despite these factors, the
economic downturns, increased number of establishments is expected to
competition and changes in rise an annualized 1.2% to 185,040
consumer preferences. locations over the five years to 2019.

Industry The Single Location Full-Service

Restaurants industry’s growth is expected
consumer confidence also suggests
that more consumers may opt to eat at
Outlook to continue over the five years to 2024 as home rather than segment their
consumers continue spending on disposable income to eating outside the
discretionary purchases, such as meals home in an effort to save money in case
outside the home. However, the growth of a market downturn. Furthermore,
rate will begin to slow down during the should food prices remain low, the trend
outlook period as growth in consumer toward consumers eating out more
spending is forecast to slow. Over the five frequently may shift in favor of at-home
years to 2024, consumer spending is cooking. In addition, slightly slower
expected to increase at an annualized rate growth in the number of households
of 2.0%, representing a slightly slower earning more than $100,000 annually
growth rate compared with the prior could potentially pressure industry
period. However, the Consumer operators that offer more niche, higher-
Confidence Index, a leading indicator of end products. As a result of these
spending patterns, is expected to decline trends, industry revenue is projected
slightly, which will limit industry growth to increase at an annualized rate of
over the next five years. The decline in 1.8% to $195.5 billion.
Industry Conditions: Intense competition, particularly

price-based competition, among Intense
competition,
Rivalry: High industry operators and external
competitors is forecast to continue over
particularly price-based
Buyers: Moderate the next five years. There will also be an competition, will likely
Suppliers: Low - mod increased emphasis on product
Threat of Substitutes: innovation and service quality to
continue
Low, not to be compete with more nimble competitors,
confused with such as fast-casual chains. Many Over the next five years, industry
alternatives. restaurants will introduce new product profitability will likely remain relatively
lines, placing an emphasis on healthy flat due to ongoing competition in the
Threat of Entry: Low, and gourmet meals. Major operators will low-growth, saturated domestic market.
significant influence seek to expand revenue and profit by Unlike large restaurant chains or other
comes from high offering alternatives to red meat, such as food service industries, single-location,
capitalization. chicken and tofu, and providing a full-service restaurants will struggle to
variety of other meal options, including increase automation and lower labor
fresh salads. Many of these items have costs due to the lack of economies of
higher profit margins because input scale. Additionally, industry wages are
costs for meals such as salads are expected to grow at an annualized rate of
relatively low compared with the 1.9% to $68.3 billion. Nevertheless,
standard menu price operators can stability in profitability will be driven by
charge. However, some menu changes the rebound in revenue, as menu prices
may have lower profit margins as and average checks rise. Industry profit,
healthier foods often require higher- measured as earnings before interest and
quality ingredients that are more taxes, is expected to account for 5.3% of
expensive for operators. revenue by 2024.

Drivers of Change - 4 While the domestic economy is projected within this segment is expected to
to improve, single-location, full-service continue shifting toward niche, value-
restaurants will still compete ferociously added preferences, with consumers
Customer Preferences: A
for their share of revenue. The food purchasing expensive meals, drinks,
penchant for fine dining or service market is increasingly dominated appetizers and desserts.
junk by large chains that are drawing revenue In addition to wealthy consumers
Effective Marketing: away from small businesses. However, increasing their visits to full-service
to include social media full-service restaurants still remain restaurants, businesses are also expected
management popular with a large segment of the to increase their spending. Many
population that prefers paying more for restaurants are located in major
personalized service and quality food. metropolitan areas where businesspeople
Fine dining is expected to do well over congregate. Due to their high-end menu
the next five years due to the rise in the offerings, full-service restaurants are an
number of households with high ideal place for business lunches and
incomes. As households become more corporate events. Corporate profit is
affluent, their spending on luxury items is forecast to increase at an annualized rate
expected to increase. In turn, more of 0.9% over the next five years and
consumers will continue to dine at IBISWorld expects companies to increase
high-end restaurants. However, slightly the number of business lunches and events,
slower growth within this income benefiting the Single Location Full-Service
segment is expected to heighten industry Restaurants industry and encouraging
competition, potentially hampering the number of enterprises to grow an
profit. Nevertheless, customer behavior annualized 1.6% to 179,550 companies.
More Drivers - Full-service restaurant operators are

Full-service restaurant
expected to continue to invest in
Cost Control/ Efficiencies:
technology as their core target market, operators are expected
Technology trends
which is younger demographics with high
disposable incomes, become increasingly
to continue to invest in
Government Regulation: tech-savvy. Restaurants will engage with technology and integrate
local, state, and federal. customers using websites and social it in to operations.
media and conduct the majority of their
marketing through online channels. It
consumers to book reservations without
has become almost essential for small
calling and talking to a person. These
businesses to have an online presence
services provide consumers with
due to the sheer amount of time
visibility and reservation times making
consumers now spend on their desktops,
booking a table more convenient.
tablets and smartphones. Operators that
Operators that are able to leverage these
are able to leverage online application
sites for marketing and reservations may
may also benefit from these technology
gain a higher number of patrons and,
trends because many of them enable
therefore, higher revenue.

Life Cycle Stage The industry is growing in line with GDP
Price-based competition limits the
ability of operators to raise prices!
The industry’s profit is low

Industry Life Cycle The Single Location Full-Service the past decade, spurring growth in the
Restaurants industry is currently in the number of operators that cater to these
mature phase of its life cycle. Growth in market segments. This trend is especially
Thisindustry the number of establishments has been apparent in urban markets, where
is M
ature slow but stable over the past decade, incomes are above average and growing
indicating the industry may have reached faster than in suburban and rural
market saturation in certain areas. The regions. The market is moving away from
limits of population size and economic high-fat, high-salt and super-sized meals
growth within a city or town that can as awareness of the obesity epidemic
support a variety of competing rises. Similarly, there has been growing
restaurants are being reached. Instead, demand for different styles of cuisine
growth has primarily come from the which has further encouraged
higher menu prices in addition to net changes and growth in the number
increases in the number of new of industry operators.
establishments. Shifts in consumer However, the industry’s growth has
preferences in recent years have been stunted by competition from the
encouraged more diversity in menu broader food services sector, especially
offerings, enabling continued slow chain fast-food restaurants with
growth in industry establishments. significant marketing power and financial
Nonetheless, competition for prime backing. Operators in this market have
operating sites with access to high foot or the benefit of operating using economies
automobile traffic is also significant. The of scale that single location restaurants
industry is constantly going through do not have. There are pockets within the
creative disruption, whereby new food services sector undergoing rapid
restaurant concepts open to cater to growth, most notably the fast-casual
evolving consumer preferences at the segment; this segment consists of
expense of outdated restaurant concepts. restaurants that do not offer full table
Over the 10 years to 2024, industry value service but promise a higher quality of
added, which measures an industry’s food and atmosphere than a fast food
contribution to the overall economy, is restaurant. The popularization of these
expected to grow at an annualized rate of locations is forecast to deter many
2.4%. This is a slightly faster rate than consumers from eating at single-location
that of the US GDP, which is expected to full-service restaurants, limiting the
grow at an annualized rate of 2.1% during industry’s growth over the 10 years to
the same period. 2024. Overall, the industry is positioned
Demand for smaller portions and to continue growing, without reentering
healthier, locally sourced produce and the growth phase of their life cycle due to
higher-quality food has increased over constrains such as competition.

Products & Markets

Supply Chain | Products and Services | Demand Determinants
Major Markets | International Trade | Business Locations
Supply Chain KEY BUYING INDUSTRIES

9901 Consumers in the US
Households are the key drivers of demand for this industry’s products.
KEY SELLING INDUSTRIES

42442 Frozen Food Wholesaling in the US
This industry supplies frozen food products.
42443 Dairy Wholesaling in the US
This industry supplies dairy products.
42444 Egg & Poultry Wholesaling in the US
This industry supplies poultry products.
42446 Fish & Seafood Wholesaling in the US
This industry supplies fish and seafood products.
42447 Beef & Pork Wholesaling in the US
This industry supplies meat and meat products.
42448 Fruit & Vegetable Wholesaling in the US
This industry supplies fresh fruit and vegetables.
42481 Beer Wholesaling in the US
This industry supplies beer and ales.
42482 Wine & Spirits Wholesaling in the US
This industry supplies wine and distilled alcoholic and other beverages.
Products and Services Products and services segmentation (2019)
3.0%
Steakhouses
6.7%
7.0% Pizza restaurants
Other
7.1%
24.8%
Asian restaurants
Seafood restaurants
13.1%
Mexican restaurants
22.6%
US restaurants
15.7%
European restaurants
Total $178.6bn SOURCE: WWW.IBISWORLD.COM
The Single Location Full-Service have a large component of seafood on

Restaurants industry is segmented based their menus. Also, fusion cuisine, which
on the main type of food served. The combines elements of different culinary
diverse and fragmented nature of the traditions, have become increasingly
industry means many restaurants do not popular. Given these considerations,
fit neatly into one category. For example, IBISWorld has segmented restaurants
many Asian restaurants and steakhouses based on their core offering. The industry

Products & Markets
Products and Services excludes establishments where become more adventurous in trying other
continued customers pay before eating and do cuisines. Higher rates of global travel and
not receive table service. increased exposure to new cultures have
also driven growth in the popularity of
US restaurants ethnic cuisine. For these reasons, revenue
Traditional and new US restaurants offer generated by Asian restaurants has
a menu with a wide variety of cuisines increased as a share of industry
such as burgers, steaks, sandwiches, revenue to 24.8%.
salads, fries and desserts. This type of
food is heavily immersed in US culture Mexican restaurants
and has, therefore, been a major driver of Staples of Mexican cuisine include rice,
the industry’s growth over the past corn, beans and chili peppers. Mexican
half-century. Over the past few decades, restaurants are known for their intense
US restaurants have increased their hold and varied flavors and variety of spices.
on the entire food service market due to Mexican cuisine has had a large influence
the growth in farm-to-table concept on the Southwest of the United States. In
restaurants and gourmet burger chains. states such as Texas, where variations
Due to the growth in this segment of such as Tex-Mex have been adopted,
Single Location Full-Service Restaurants, Mexican style restaurants can account for
traditional and new US cuisine has been well over 13.1% of all establishments.
overtaken by ethnic foods due to the Growing immigration has contributed to
evolution of the US palate and the a rise in Mexican food consumption over
gastronomy movement. IBISWorld the past five years, driven in part by a rise
estimates that in 2019, US restaurants in the Hispanic population, which now
will represent 22.6% of industry revenue. accounts for 16.7% of the total population
in the United States. This style of the
Asian restaurants restaurant has remained popular among
Asian food is a diverse category that can many consumers due to the basic staples
be broken down into a variety of regional used in the cuisine. Many single location
styles based on the peoples and cultures full-service restaurants in this segment
of those regions. The main broad types have begun offering a more gourmet and
include East Asian (including Chinese, authentic menu, incorporating new
Japanese and Korean restaurants); flavors and textures into classic meals
Southeast Asian (including Vietnamese, such as tacos. This has increased the
Thai and Malaysian restaurants); and popularity of these establishments among
South Asian (including Indian, Sri industry operators.
Lankan and Bangladeshi restaurants).
Other variations such as Middle Eastern European restaurants
and Central Asian cuisines have been European restaurants include Italian,
included in the ‘Other’ category for the French, Mediterranean and Spanish
purposes of this report. Asian food restaurants. Most restaurants have
remains popular in states with high Asian evolved their recipes to suit US tastes.
populations, such as California and New For example, the modern Italian-
York, but is also popular in a variety of American menu is heavily focused on
geographic locations due widely accepted pasta-based dishes and pizza and tends
menu offerings. Society’s adoption and to include greater amounts of meat and
acceptance of ethnic foods, in general, garlic than traditional Italian dishes.
has increased over the past half-century Italian-American dishes also tend to be
as tastes have developed and people characterized by large amounts of tomato

Products & Markets
Products and Services sauce. Like many other ethnic cuisines, slight extravagance and a luxury dining
continued European restaurants are more popular experience. While steakhouses can be
in regions with high European found throughout the United States,
immigration, such as in New York restaurants that specialize in seafood tend
City, where European restaurants to be concentrated near large bodies of
account for an estimated 20.4% of water and the coastlines. Seafood
establishments. In 2019, European restaurants in these regions are able to
restaurants are anticipated to make up access a steady supply of local product with
15.7% of industry revenue. relatively low shipping costs. Seafood is
This segment includes pizza hard to keep fresh for long periods of time
restaurants which serve a menu of house making shorter distribution routes ideal.
and custom pizzas alongside pasta, salad Steakhouses have continued to grow in
and other Italian-influenced cuisines. popularity especially in large cities. Despite
Due to the wide influence of Italian chains such as Ruth’s Chris and Del
immigrants in US culture over the past Frisco’s continued prominence in this
century, many regional forms of pizza segment, local single location steakhouses
have developed. Revenue from this continue to be popular among urban
segment has declined over the past five crowds. Overall, steakhouses and
years as pizza has become increasingly seafood restaurants are estimated to
defined as a carryout or delivery food. account for a combined 10.1% of industry
Pizza franchises such as Dominos, Pizza revenue in 2019.
Hut and Papa John’s, which now largely
focus on carryout or delivery services, Other
have contributed to this trend as they Other restaurants include restaurants
have been able to access higher profit that do not specialize in any type of dish
through this business model. Still, or that specialize in something not
sit-down pizza restaurants remain included in these other categories, such
popular in much of the north-east and in as desserts. This segment has changed
urban locations where consumers prefer over the past decade as ethnic foods have
and can afford gourmet offerings. Pizza become more popular and obtained a
restaurants are expected to make up 6.7% much larger share of the market, forcing
of industry revenue in 2019. them out of this segment. As consumer
preferences change and new foods and
Seafood and steakhouses food service concepts enter the market,
Industry operators that specialize in this category changes its structure,
seafood and steak are typically higher-end although its size has remained relatively
operators that typically have menus with consistent. Overall, this segment is
more expensive and diverse options. These expected to make up 7.0% of industry
menu items are typically synonymous with revenue in 2019.
Demand The Single Location Full-Service market growth (i.e. the unemployment
Determinants Restaurants industry is sensitive to rate) and movements in tax and interest
factors that affect the growth in rates as they can affect the level of
household disposable income, which disposable income in the market.
gives consumers the ability to spend Consumer sentiment also influences the
money on out-of-home dining. In turn, industry’s performance as people make
this factor is sensitive to changes in labor decisions on their discretionary spending

Products & Markets
Demand based on changes in their economic and the industry as demographics of a

Determinants financial outlook. population will affect the types of
products and services available on the
continued
Health consciousness market. Baby boomers are a major
Rising health consciousness has a direct group that influences industry revenue
*There is a effect on industry operators as US growth. Not only are they a significant
reason that consumers become increasingly percentage of the population, but they
Taco Casa concerned about fat content, fried foods are also the population with the most
exists. And it and salt content, especially when dining relative wealth and therefore have
out. As a result, rising concerns over the higher levels of disposable income to
is not for the
nutritional value of restaurant meals are spend on restaurant meals. US Census
nutritional likely to influence demand for certain Bureau consumer expenditure data
value. foods on menus. This will encourage indicates that consumers with incomes
industry players to alter their product in the top two income brackets
And what mix or add supplementary menu items to (consisting of those consumers that earn
about cater to this shift in consumer more than $100,000 per year) account
preferences. It is also expected to affect for an estimated 42.4% of the total
Chipotle`? Is
overall performance for industry players personal expenditure on food eaten
this really by rewarding operators who expand their outside of the home. The most
healthy or menu choices to include a range of important factor driving the highest
organic? healthy meal options among other more household income group to spend in
indulgent food items. restaurants is the pressure of work and
lack of time, incentivizing them to eat
Convenience away from home more often.
Convenience, value for money and time Additionally, as millennials and older
are other important demand members of generation Z enter the
determinants. Recent social trends such workforce, they are also likely to spend
as busier lifestyles, heavier workloads money eating out. While members of
and longer working hours, have helped these generation segments may not
boost demand for restaurant services and have a large of incomes when compared
convenience food, as time-poor with baby boomers, they tend to be
consumers seek to cut down cooking time more small business oriented. As many
and make better use of their spare time. industry establishments are considered
Industry operators that are able to small businesses, due to their size and
provide an efficient sit-down service may the local nature of their services, they
draw larger revenue as it enables them to are aligned to benefit from these
provide a convenient service to time- consumer preferences. These younger
sensitive individuals while increasing generations are also the forerunners of
potential turnover. Moreover, restaurants the premiumization trend. This trend is
have become more of a place for family the movement to make luxury more
get-togethers, special occasions and affordable and to prioritize more
social meetings for cash-rich and time- premium or high-quality products and
poor consumers. services. Single location full-service
establishments tend to provide higher
Demographic trends quality service and food options,
The changing age structure of the positioning industry operators to
population is influencing demand within benefit from this trend as well.

Products & Markets
Major Markets Major market segmentation (2019)

1.2%
Governmental bodies
(federal, state, and local) 8.4%
Businesses (billed to expense accounts)
11.6%
Households earning under $30,000 42.4%
Households earning
more than $100,000
11.7%
Households earning between
$30,000 and $49,999
24.7%
Households earning
Total $178.6bn between $50,000 and $99,999 SOURCE: WWW.IBISWORLD.COM
The Single Location Full-Service spent $6,247 on food and beverages

Restaurants industry receives an consumed outside the home, according to
estimated 90.0% of demand from the US Census Bureau. This expenditure
households and individual consumers, represented 5.7% of the highest income
while businesses represent the remaining bracket’s annual expenditure, just slightly
10.0%. Demand from businesses is above the national average. Furthermore,
mainly derived from lunch meetings, this income segment spends 48.8% of its
client dinners and other similar food budget on meals away from home.
functions. While this segment remains an These individuals have a higher level of
important market, it represents a disposable income and therefore are
fragmented part of industry demand. The more likely to eat out. Additionally, these
households and consumers segment individuals may decide to trade up and
represents the majority of demand and eat at establishments that have higher
can be segmented based on several prices and provide a more upscale
factors including income, age, geographic service, thus spending more money per
location and family structure. Given the meal when eating away from home.
discretionary nature of the industry, an These individuals generally have full-
indication of major markets can be time occupations that require them to
inferred on the basis of annual work a minimum of 40 hours a week.
expenditure on food and beverages This limits the available time consumers
consumed outside the home. According have to cook and prepare meals for
to the US Census Bureau, the average themselves at home, further incentivizing
consumer spends 5.6% of their annual them to eat at industry establishments.
expenditure on food and beverages
consumed outside the home. Lowest income consumers
Compared with the highest income
Highest income consumers segments, those in the lowest income
An estimated 42.4% of industry demand segments (those earning $30,000 or
comes from consumers in households less annually) often need to make
that earn more than $100,000. In 2018 significant sacrifices to afford meals
(latest data available) the average away from home. The average consumer
consumer in the highest income bracket in the lowest income quintile spent

Products & Markets
Major Markets $1,537 on out-of-home food demand for middle-of-the-range single-

continued consumption, representing 5.3% of location restaurants. On average, these
average annual expenditure for households spend an estimated $3,049
households in the lower income annually or 41.9% of their total food
segments. This also represents 34.9% budget on food away from home. Similar
of their entire food budget. Given the to individuals in the highest income
relative cost of eating away from home, segments, these individuals are often
this income bracket typically opts to save employed with full-time jobs, limiting
money by cooking their own meals at their time that they can spend cooking
home or at other food service competitors and preparing meals. These individuals,
such as fast-food establishments. however, generally have lower
disposable incomes than those in
Middle-income consumers higher income brackets.
The middle-income brackets, or The industry’s major markets
households earning between $30,000 distribution has not changed dramatically
and $100,000, represent more than over time as spending patterns within
36.4% of industry demand. This shows income brackets are relatively
how important the middle-class established. There was some tightening
consumer is to the industry’s of budgets during the recession, but this
performance. While these consumers do occurred across all demographics, so it
not typically spend big on luxury food did not influence the industry’s major
items, they contribute to the steady markets distribution.
International Trade Due to the service-based The industry consists largely of small
nature of the industry, there is business owners that serve the
no international trade in this industry. domestic market.

Products & Markets
Business Locations 2019
West
AK
0.2 New
England
ME
Great Mid- 0.6
Lakes Atlantic 1 2
NY 3
WA MT ND 8.2
5 4
2.5 0.2 MN
Rocky
0.4 1.6
WI
OR Mountains SD
0.3
Plains 2.0 MI
2.9
PA
3.9
6
7
1.7 ID IA OH 9 8
0.5 WY 3.1
0.2
NE
1.0
IL IN WV VA
3.9 1.9 2.8
West NV
0.6 0.5
KY
UT MO
1.1 NC
0.8
0.7 CO KS 1.9 3.1
2.0 0.9 TN
SC
Southeast
1.8
CA 1.7
12.5
OK AR GA
1.1 0.8 AL 2.9
AZ MS 1.1
1.7 NM
0.5 Southwest 0.7
TX LA
1.2 FL
7.2 6.6
West Establishments (%)
HI Less than 3%
0.5 Additional States (as marked on map) 3% to less than 10%
1 VT 2 NH 3 MA 4 RI 10% to less than 20%
0.3 0.5 2.6 0.5 20% or more
5 CT 6 NJ 7 DE 8 MD 9 DC
1.4 3.1 0.3 1.4 0.4

Products & Markets
Business Locations As a service-based retail industry,

Distribution of establishments vs. population
full-service restaurants are dispersed
largely in line with population and
30
income distribution. Industry operators
must be close to a large population to
have a large number of consumers to 20
cater to as well as have access to a large
workforce. Therefore, the industry is
%
concentrated in the Southeast (24.2% of 10
industry establishments), West (18.2%)
and Mid-Atlantic (17.3%) regions, as
these regions are home to the largest 0
concentrations of the US population.
West
Great Lakes
Mid-Atlantic
New England
Plains
Rocky Mountains
Southeast
Southwest
Most of these regions have a large
number of relatively small
establishments, in terms of employment
and revenue. Establishments
Operators will attempt to situate Population
themselves in high-profile areas with a SOURCE: WWW.IBISWORLD.COM
high rate of foot or automobile traffic

such as large cities and town centers. In spending are highest. For this reason,
highly sought-after areas, costs may be New York City (New York comprises
high as restaurants pay for the privilege 8.2% of industry establishments), Las
of exposure. Many operators cannot Vegas, Los Angeles, Chicago, Miami, San
compete for high-profile, high-rent Francisco, Charleston and Washington,
locations with high passing traffic due to DC all have a large number of single
the industry’s small-business nature; location full-service restaurants and the
these places are usually garnered by the industry is highly competitive in these
major chain and franchised restaurant cities. These cities are also mainly
operators. As a result, a large proportion concentrated in the regions with the
of operators tend to be located in slightly highest concentration of industry
offbeat locations such as local establishments. California, which is
neighborhoods and shopping centers. home to Los Angeles, San Francisco
Given the small scale of their operations, and San Diego, comprises 12.5% of
a viable restaurant operation can still be industry establishments.
established, but it will usually serve The current distribution is not
higher income populations in their expected to change significantly over the
immediate surroundings. next five years, as IBISWorld does not
The industry is most highly expect any substantial demographic
concentrated in the nation’s largest cities, changes or population shifts during the
where business activity, tourism and period and the same fundamentals
incomes that support restaurant remain at play.

Competitive Landscape
Market Share Concentration | Key Success Factors | Cost Structure Benchmarks
Basis of Competition | Barriers to Entry | Industry Globalization
Market Share Overall, concentration is extremely low The low level of concentration in the
Concentration because the Single Location Full-Service industry results in fierce competition
Restaurants industry inherently consists among operators. The industry has low
of businesses that are single, owner- barriers to entry and owners typically
Level
operated establishments that are not compete on price, menu offerings, cuisine
Concentration in part of a chain or franchise operation. As and customer service. Owner-operators are
this industry is L ow a result, no single industry operator prominent in the industry, putting a
comprises more than 5.0% of industry significant proportion of their own time
revenue in 2019. Annual average and effort into running a restaurant. Many
revenue per operator is estimated to be industry operators are family run, meaning
an estimated $1.1 million in 2019 and they primarily just employ members of the
each establishment employs an owners extended family. The industry is
estimated 17 full-time or part-time staff. also known for its large staff turnover,
According to the US Census, an which generally depends on the number of
estimated 63.2% of full-service casual staff who work in the industry while
restaurants have less than 20 employees studying. The relatively low wages and lack
and 87.2% and fewer than 50 employees. of a well-defined career path deter many
Furthermore, an estimated 26.9% of all employees from considering the industry
restaurants have less than five as a long-term employment opportunity
employees, emphasizing the small- except in areas that focus on the hospitality
business nature of the industry. and tourism industry.
Key Success Factors Skilled Workers: Access to multi-skilled and Favorable Locations: Proximity to key
3 to 5 Factors. flexible workforce markets
Access to suitably skilled and trained staff on It is important to be in a good, easily
hourly rates is required to meet peak customer accessible location that is close to target
IBISWorld identifies demand periods. Customer service is a given. markets.
250 Key Success
Factors for a business. Superior Information systems: Ability to quickly Overall Low Costs: Ability to control
adopt new technology Owners need to adopt stock on hand Controlling orders, stock
The most important
new employee training as well as kitchen and and food waste, which are all major cost
for this industry are: customer-related technology to increase areas, can reduce unnecessary expenses.
productivity and lower labor costs. And.....Ensuring pricing policy is
Favorable Image: Attractive product appropriate To maintain costs and

presentation profit on meals, owners must ensure
The atmosphere and ambiance of a restaurant that menu pricing/portion control
are important to attract and retain guests. process is undertaken thoroughly.
Cost Structure The cost structure for operators Wages

Benchmarks participating in the Single Location Wages are high due to the labor-intensive
Full-Service Restaurants industry nature of food preparation, cooking,
depends on a variety of factors, such as serving and cleanup. Over the past five
the size of the operator and the location. years, labor costs have increased; these
This is the average cost structure for an costs include wages and benefits, such as
industry operator. health, workers’ compensation and

Cost Structure unemployment insurance. Menu prices operators that can guarantee both
Benchmarks and industry profitability are affected by prompt delivery and quality foodstuffs.
labor intensity because cost increases Fluctuations in the cost of food and
continued
cannot simply be passed directly on to liquor significantly influence industry
consumers in the form of higher prices, revenue and profit. In the short term,
especially given the weak economic many of these cost increases cannot be
conditions and rising unemployment passed on to the consumer or client.
levels. Industry wage costs incurred will Therefore, menus, portion sizes and
account for 36.2% of an average other inputs into food service have to be
operator’s revenue in 2019. This continually monitored. The other major
represents an increase over the past five source of inefficiency is waste due to
years as operators must offer higher fluctuations in demand, an oversupply of
wages to maintain their employees in a meals or excess ingredients that cannot
period of low unemployment. be used and are subsequently spoiled.
IBISWorld estimates that in 2019,
Purchases purchases will account for 32.3% of an
Purchases comprise the largest cost for average operator’s revenue, representing
industry operators, which include items a small decline from 32.9% in 2014.
such as alcohol, food and other
incidentals, such as paper towels, Profit
cleaning equipment and glassware. Food The Single Location Full-Service
and beverages are usually purchased Restaurants industry’s profit is based on
from wholesalers, particularly from earnings before interest and taxes. Profit
Sector vs. Industry Costs
Average Costs of
all Industries in Industry Costs
sector (2019) (2019)
100
10.0 5.2 n Profit
n Wages
n Purchases
80 n Depreciation
25.1 34.8 n Marketing
n Rent & Utilities
n Other
Percentage of revenue
60
29.8
32.3
40
4.9
1.8 2.2
9.3 1.8
20
10.6
19.1 13.1
0

Cost Structure vary between players depending on the promotional activities, while others do
Benchmarks continued size of the business. Inherent to the not spend a cent on marketing. On
industry, operators do not benefit from average advertising costs represent and
economies of scale as they only own and estimate 1.8% of industry revenue in
Remodeling is operate one single location under the 2019, which is a slight decrease from
considered a lease- brand, preventing rapid expansion. 1.9% in 2014.
hold improvement. Furthermore, the highly competitive
Expect to pay about nature of the industry means most Rent
$250 per foot in the operators can only access slim profit. The Rent and utility expenses are high for the
types of products an operator sells restaurants in the industry due to the
DFW area. Plumbing,
influences profit. For example, need for locations in high traffic areas
electrical, structure, restaurants that specialize in serving with high visibility. This can include a
and insulation must high-end produce may access higher location near a main thoroughfare or in a
meet current code. profit due to the high mark they place on high foot traffic location. Due to the
the purchase price of products. However, increased demand for these locations,
these restaurants typically do not attract landlords typically charge high rent
diners in high volumes as compared with prices. Rent can vary among industry
lower price point locations and, operators based on location and size. On
therefore, have to manage their expenses average, however, rent expenses are
carefully. Many restaurants increase their estimated to make up 7.7% of industry
profit margin by selling beverages, revenue in 2019, representing a moderate
particularly alcoholic drinks such as wine increase from 2014.
that can support high mark-ups. The
average industry profit margin has Utilities
increased slightly over the past five years Additionally, restaurants use a large
to an estimated 5.2% in 2019, as demand amount of energy for cooking. This
has improved, and costs have remained includes a large amount of electricity for
steady. However, the competitive nature refrigeration and freezing as well as gas
of the industry limits the ability of for stovetops. Utilities expenses are
operators to access profit much higher expected to equal 2.9% of an average
than their current level. operator’s revenue in 2019, representing
a moderate decline from 2014. Utility
Depreciation expenses can vary significantly among
Depreciation is anticipated to account for industry operators depending om the
2.2% of industry revenue in 2019. The type of cuisine, cooking methods, size of
industry does not rely on heavy establishment and hours of operation.
equipment or machinery, contributing to
a low depreciation cost. Depreciation Other
costs have remained relatively stagnant Other costs include those incurred in the
during the five-year period. normal course of business, such as
insurance, accounting and legal costs,
Marketing licensing fees, stationery and office costs
Marketing is another cost that varies which vary between establishments
depending on the establishment as some as operations are set up to run and
restaurants have a large budget for function differently.

Basis of Competition Internal competition orders, choose the type of sauce on the
Although price-based competition is side and have the food prepared with
prevalent within this industry, cooking oil, margarine, butter or no salt.
Level & Trend restaurants also compete on the basis of
ompetition
C in location, food quality, style and External competition
this industry is presentation, ambiance, hospitality and Competition in this industry arises from
Highand the trend service. Eating away from home is other food service providers, including
considered a luxury for many households, limited-service restaurants and chains
is I ncreasing
making dining at industry establishment and franchised full-service restaurants.
a luxury. For this reason, price is the The latter has a far greater market
primary source of competition among awareness and presence but can be
industry operators. However, operators limited by offering a standardized menu
that offer higher quality food and more across all of its establishments and not
up-scale ambiance can generally charge a catering to its local market. These
slight premium on their menu items as franchised-full services rang in quality
consumers are willing to pay more for the and price points similar to independently
higher-end experience. Therefore, it is opened operations. Many often provide
crucial industry operators are aware of the same or similar products and services
their target audience and place in the as Single Location Full-Service
respective market. Furthermore, Restaurants making them direct
operators compete based on type and competition to industry operators. Some
variety of food served. This factor of customers may prefer to dine at local
competition relies heavily on widespread individual establishments in favor of
consumer preferences as well as current supporting small-business, however in
consumer cravings. For example, many cases that is the only differentiating
consumers on a wide scale are shifting factor between franchised and single-
preferences for health-conscious and location establishments.
environmentally friendly industry Additionally, competition from
establishments but may desire unhealthy limited-service restaurants is also
options based on momentary cravings. prevalent among consumers seeking to
Restaurants are involved in marketing trade down from full-service
the meal experience, so it is important restaurants. Limited service operators
that the owner-operator understands a are increasingly drawing in customers
restaurant’s positioning in the from full-service alternatives by offering
marketplace, the clientele they are higher quality products at lower price
attracting or want to attract and the meal points. These limited-service operators
experience. Most importantly, a typically offer a faster dining experience
restaurant must consistently deliver on as well, catering to those on a tight
the customers’ expectations. time frame.
Research by the National Restaurant Other competitors include households
Association indicates that choice of that prepare their own meals at home or
portion size and the availability of to-go purchase pre-packaged meals at
boxes are important factors. A high supermarkets to consume at home.
proportion of the younger generation Start-ups such as Blue Apron and Hello!
order larger portion sizes and request a Fresh are growing in popularity, posing a
to-go box, to use the excess for another threat to industry operators. These types
meal. Varying portion size also meets the of companies home deliver fresh
value-for-money criteria sought by many ingredients and recipes at a low fixed cost
customers. Currently, there is high weekly enabling more individuals to cook
demand for the ability to customize at home instead of eating out.

Barriers to Entry The Single Location Full-Service

Restaurants industry’s barriers are low Barriers to Entry checklist
Level & Trend since an operator can lease premises, Competition High
equipment, furniture and fittings, Concentration Low
arriers to Entry
B lowering the initial capital costs, outlays Life Cycle Stage Mature
in this industry are and borrowings. In particular, industry Capital Intensity Low
Lowand S teady concentration is low, as the top four Technology Change Low
players account for less than 5.0% of Regulation and Policy Medium
market share in 2019. This percentage Industry Assistance Low
indicates the extreme small business and
fragmented nature of this industry. No SOURCE: WWW.IBISWORLD.COM
major player dominance exists within it,

limiting the amount of competition from Despite low barriers to entry, barriers
large restaurants with economies of scale. to success (i.e. the ability to stay
Given the usual high owner/operator profitable and in operation for more than
revenue in this industry, it may also be a few initial years) are high. This is
possible to enter through the purchase of mainly due to the highly competitive
an existing business or closed restaurant nature of the industry and the low profit
operation. Often this enables entrants to available. Operator turnover is high with
have access to a popular market or locate many new restaurants failing within a
in an area that is desirable due to the few years of opening. Even among those
proximity to key markets. However, some family-owned and operated restaurants
refurbishing costs may be associated with that are successful, owner burnout is high
this method. as the hours are often demanding.
Industry The majority of operators in this nonexistent. The industry is therefore

Globalization industry are small businesses that are subject to a low level of globalization.
US-owned and earn most of their sales IBISWorld does not expect the
Level & Trend from domestic activity. No significant or industry’s level of globalization
major international operators exist in to change significantly over the
lobalization
G in this this industry and international trade is coming years.
industry is L owand
the trend is S teady

Major Companies
There are no Major Players in this industry | Other Companies
Other Companies According to the US Census, an estimated IBISWorld report 72211a). As a result, no
63.2% of operators in the Single Location individual player in this industry holds a
Full-Service Restaurants industry have significantly influential market share. This
fewer than 20 employees. Furthermore, highly fragmented composition ensures
an estimated one-third of all restaurants that barriers to entry remain low, with
have fewer than five employees, operators able to enter the industry with
emphasizing the small-business nature of relative ease. However, some independent
the industry. Most industry players are restaurants are notable for their immense
owner-operators with one establishment popularity and are some of the most
that emphasizes its independence as a highly demanded establishments in the
unique selling point. Most operators with United States. According to Restaurant
more than one location tend to open new Business, three of the top US independent
restaurants under different brands, shying restaurants in 2018 were Tao Las Vegas,
away from a chain image (distinct from Joe’s Stone Crab and Old Ebbitt Grill
the Chain Restaurants industry, (latest data available).
Other Company Clyde’s Restaurant Group (Clyde’s) is a Grant, Grover Cleveland, Warren G.
Performance restaurant conglomerate that operates Harding and Theodore Roosevelt.
several establishments, all functioning Conversely, The Soundry, which opened
under independent names, excluding it in early 2018, is the newest addition to
Clyde’s Restaurant from the chain restaurant industry the Clyde’s portfolio. This restaurant
Group (IBISWorld report 72211b). The will function as a full-time concert
Market Share: 0.0% restaurants in the company’s portfolio hall, hosting music and other live
include Old Ebbitt Grill, 1789, The events while serving up various forms of
Tombs, The Hamilton and The Soundry. street food, such as specialty tacos and
While all of these establishments are falafel sandwiches. Clyde’s is not a
located in the greater Washington, DC publicly traded company and does not
metro area, they each offer drastically disclose its financial information.
different dining experiences. For However, across all three of these
example, Old Ebbitt Grill has been a independent restaurant establishments,
staple among customers in Washington, IBISWorld estimates that Clyde’s
DC, since it was first opened in 1856. It will generate $65.2 million in 2019,
has been a famous favorite among several representing an annualized growth of
US presidents, including Ulysses S. 7.0% during the five-year period.
Other Company Originally opened in 1913, Joe’s Stone providing the Weiss family with over a
Performance Crab has been a popular US favorite. century of success. Joe’s Stone Crab is an
Located in Miami Beach, FL the independent restaurant and is not
restaurant has grown from a small lunch publicly traded, so it does not disclose
Joe’s Stone Crab stand into an independent restaurant. In financial information. Using available
Market Share: 0.0% the beginning, Joe Weiss, along with his information, IBISWorld estimates that
wife and son, ran the restaurant as a Joe’s Stone Crab will generate $36.2
family-owned and -operated business. million in revenue in 2019, representing
The restaurant became a must-see in an annualized increase of 0.5% during
Miami for both tourists and locals, the five-year period.

Major Companies
Other Company Tao Las Vegas (Tao) serves high-end pool filled with live Japanese Koi provide
Performance Chinese, Japanese and Thai food. This patrons with a memorable experience. As
restaurant has historically been a largely with most of the operators in this
popular venue among individuals on industry, Tao does not disclose its
Tao Las Vegas vacation and celebrities in Las Vegas due financial information. Based on available
Market Share: 0.0% to its reputation of excellence in information, IBISWorld forecasts that
combination with its ambiance provided Tao’s revenue will decrease at an
during the dining experience. This annualized rate of 7.7% to $43.2 million
establishment prides itself on providing in 2019. This substantial decrease is
what it calls vibe dining. The company attributed to the company lowering some
has cultivated a space that provides a of the prices on its menu to focus on the
visual and cultural experience in addition nightclubs it owns in New York and Las
to a culinary one. The restaurant’s Vegas instead of on revenue generated by
20.0-foot-tall Buddha statue and infinity the restaurant.

Operating Conditions
Capital Intensity | Technology & Systems | Revenue Volatility
Regulation & Policy | Industry Assistance
Capital Intensity The Single Location Full-Service

Restaurants has a low level of capital Capital Intensity
Capital units per labor unit
intensity. For every $1.00 the average
Level
restaurant spends on wages in 2019, it 0.5
The levelof capital will spend an estimated $0.06 cents
intensity is L ow toward using and replacing buildings and 0.4
equipment. This is derived from the high 0.3

level of labor required for operation by
the industry and has remained flat over 0.2
the past five years as the industry has not 0.1

experienced any significant changes to
their capital investment structure. The 0.0
Economy Accommodation Single Location
industry is and is forecast to remain and Food Full-Service
Services Restaurants
heavily dependent on direct labor input Dotted line shows a high level of capital intensity
across all operations, including ordering, SOURCE: WWW.IBISWORLD.COM
delivery, food preparation, liquor and

other beverage sales, cooking, serving, investment in technology, including
cleaning and management. Some rise in electronic customer ordering systems
labor productivity can occur from that are linked to the kitchen, letting

Capital Intensity chefs and cooks more efficiently process and most of these functions cannot be
continued and prepare orders. These advancements replaced with technology or automated
can help improve profit. Still, significant through different processes. Operators
labor input is required to meet try optimizing labor costs by bringing on
customers’ expectations and provide a an appropriate number of trained casual
quality and hospitable dining experience and part-time staff at peak guest periods.
Technology and In general, the food service sector advance. Furthermore, industry
Systems experiences a moderate level of operators may update kitchen appliances
technological change that varies among or other cooking technologies not only
Level the different service and products improve the quality of the food but
provided to consumers. Most operators ensure fast meal preparation and cook
The level
of within the Single Location Full-Service times, improving the quality of service
technology Restaurants industry are small business provided to customers.
change is L ow owners that do not have a strong
incentive to invest heavily in new Point of sale systems
technology due to the limited economies The small-business nature of the industry
of scale available. Many owner-operators means many operators do not have the
rely heavily on their own labor or that of capacity to invest heavily in advanced
extended family or friends for operation. technology. However, there are various
These employees are usually paid at low-cost options that assist store
relatively low hourly rates. Consequently, efficiency. Most operators now have
it is not as critical to lower wage costs or point-of-sale systems in stores to speed
raise productivity, particularly at the up service, which helps lead to larger
lower end of the industry. Still, purchases on average and cuts down on
restaurants regularly attempt to leverage labor costs. Retailers are increasingly
new technology to reduce labor and food accepting credit card payments through
costs to increase sales. They also use it to devices such as Square, which connect
improve business processes, support directly to the store’s iPad or iPhone and
growth, maintain current operations and facilitates ease of transaction. Customers
improve meal experiences. can sign with their finger on a
touchscreen rather than with a pen and
Quality of service have the receipt emailed to them. These
The majority of technological adoption by point-of-sales systems usually are cost
the industry aims to address new systems efficient for industry operators as well.
and processes that are designed to Typically, Square and other services
promote quality service and reduce include access to diverse credit card
customer wait time. Wireless electronic networks without additional costs,
ordering systems that link front-of-the limiting the subscription fees
house orders to kitchen meal preparation restaurants would have to pay to
are an example of such innovation. The credit card companies.
increasing sophistication of the internet
and mobile technology have also enabled Social media
industry players to reach wholesalers and Technology has also aided restaurant
suppliers online. This has increased owners with marketing. Social media
efficiencies in coordinating supplies and platforms such as Facebook, Twitter and
other food items that are prepared in Instagram enable savvy operators to

Technology and connect directly with customers and receiving restaurant recommendations
Systems tailor their brand’s message to target from these social media platforms.
fragmented consumer segments. This is Operators that are able to position
continued
growing in importance for industry themselves well on these sites tend to
operators as many individuals are draw a large crowd of new customers.
Revenue Volatility The Single Location Full-Service meals away from home. Due to this
Restaurants industry is subject to a low economic development, industry revenue
level of revenue volatility. The industry has grown slowly, but consistently which
Level
depends on consumer tastes and has limited revenue volatility over the
The level of preferences, as well as levels of five years to 2019.
volatility is L ow disposable income and consumer Furthermore, the diversity of foods
confidence. Restaurant spending is highly served by the industry helps keep any
discretionary and easily substituted for volatility under control. The industry
lower cost options such as home-cooked consists of a range of food products, from
meals. As a result, changes in factors Asian restaurants, to traditional US
affecting incomes, such as taxes and restaurants and other ethnic cuisines.
unemployment levels, directly affect This diversity of product offerings among
industry revenue. Over the past five industry operators provides the industry
years, the US economy has had strong protection from changing consumer
economic growth and historically low preferences. Although this may not help a
unemployment rates. Therefore, more single operator with a specified menu
consumers have increased spending on offering, it helps the industry as a whole.

Regulation and Policy The Single Location Full-Service formulates and regulates its own
Restaurants industry is subject to a minimum wage, with some states
medium level of regulation that is implementing rates higher than the
increasing. There are regulations federal rate. Operators must abide by the
covering a range of areas, from food laws governing them at both the national
safety and standards to labor conditions. and state levels; paying the highest of the
Most regulation is enacted and enforced two wages. There has been some
at the state level, but many federal laws speculation and lobbying throughout the
also apply. United States to increase the federal
minimum wage to as high as $15.00 an
Food safety and standards hour. This has yet to be implemented or
There are more than 3,000 state, local find a large foothold among regulators,
and tribal agencies that have a but has slowly gained traction during the
responsibility to regulate the retail food five-year period. If this change is
and food service industries in the United implemented it will drastically increase
States. The main agency responsible for wage expenses among industry operators.
providing guidance and regulation is the The implementation of the Affordable
US Food and Drug Administration’s Care Act over the next five years will have
(FDA). The FDA’s Model Food Code, a minor effect on the industry. Employers
which is a best-practice guide to food with 50 or more employees that work 30
handling and presentation, applies to this hours a week will be required to provide
industry and is updated each year. The healthcare coverage or pay a fine.
FDA Nutritional Value applies as well. However, an estimated 87.2% of
Since 1996, the FDA regulations have set operators in the industry employ less
standards for nutritional values of than 50 staff.
individual foods and meals. If claims
such as “low fat” or “heart healthy” are on Smoking bans
a menu, an owner must be able to Smoking laws are generally enforced at
demonstrate to officials that there is a the state level as the US Congress has not
reasonable basis for the claim. For attempted to enact any nationwide
instance, the meal may be based on a federal smoking ban. Smoking is banned
recipe from a health association or a in restaurants, bars and non-hospitality
recognized dietary group. Complete workplaces in many states and some local
nutritional information, however, is not jurisdictions ban smoking in outdoor
required to be on menus. areas. Each jurisdiction has developed
legislation separately; however, most
Labor relations laws are relatively consistent. There are
The industry employs a high number of some differences pertaining to the
young and low-skilled workers at hourly circumstances in which ventilated
rates and, therefore, is subject to smoking rooms are permitted and the
minimum wage and employee benefits distance smoking is banned outside a
regulations. Workers in the United States building. California was the first state to
are entitled to be paid no less than the enact a statewide ban on smoking, with
statutory minimum wage, which is most other states imposing a ban in the
currently $7.25 per hour. Each state also mid to late 2000s.

Industry Assistance Although the Single Location Full-Service events and networking opportunities.
Restaurants industry receives no formal They also represent the industry as a
assistance in the form of government aid lobbying agency, supporting industry
Level & Trend or monetary compensation, there are operator’s best interests on Capitol Hill.
he level of
T industry associations that help the There are also organizations that provide
Industry Assistance industry as a whole. For example, the the same services on a more local level,
is L owand the National Restaurant Association provides such as state restaurant associations or
industry news, research, sponsoring even city-wide restaurant associations.
trend is S teady

Key Statistics
Industry Data Industry Consumer
Revenue Value Added Establish- Wages Domestic spending
($m) ($m) ments Enterprises Employment Exports Imports ($m) Demand ($b)
2010 131,223.2 55,569.6 171,597 153,991 2,568,590 -- -- 46,908.8 N/A 632.1
2011 136,166.9 56,038.9 171,738 154,351 2,574,213 -- -- 47,324.2 N/A 641.0
2012 141,517.0 58,644.0 168,992 151,431 2,674,488 -- -- 48,879.3 N/A 644.8
2013 146,273.3 63,005.4 172,436 154,815 2,751,584 -- -- 52,766.2 N/A 647.9
2014 152,613.6 65,425.4 174,208 156,558 2,817,538 -- -- 54,742.5 N/A 665.2
2015 159,945.4 70,834.9 173,353 155,675 2,867,887 -- -- 58,039.4 N/A 698.1
2016 162,026.5 72,940.7 173,014 155,329 2,925,566 -- -- 60,302.6 N/A 722.0
2017 169,081.3 71,350.2 179,382 161,059 3,028,382 -- -- 59,176.3 N/A 743.9
2018 174,228.0 73,015.8 182,264 163,494 3,107,870 -- -- 60,779.4 N/A 780.0
2019 178,593.6 75,305.4 185,040 165,872 3,181,046 -- -- 62,228.4 N/A 810.4
2020 182,494.0 76,991.7 188,114 168,571 3,249,269 -- -- 63,567.9 N/A 823.8
2021 185,509.2 78,368.1 190,778 170,927 3,306,311 -- -- 64,670.7 N/A 837.3
2022 188,935.9 79,884.9 193,692 173,494 3,368,352 -- -- 65,880.5 N/A 851.1
2023 192,419.9 81,450.0 196,983 176,419 3,432,736 -- -- 67,130.8 N/A 865.1
2024 195,516.2 82,869.5 200,466 179,550 3,493,887 -- -- 68,303.6 N/A 878.0
Sector Rank 3/12 3/12 2/12 2/12 2/12 N/A N/A 2/12 N/A N/A
Economy Rank 65/694 39/694 41/694 43/694 6/694 N/A N/A 20/694 N/A N/A
Annual Change Industry Establish- Domestic Consumer

Revenue Value Added ments Enterprises Employment Exports Imports Wages Demand spending
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
2011 3.8 0.8 0.1 0.2 0.2 N/A N/A 0.9 N/A 1.4
2012 3.9 4.6 -1.6 -1.9 3.9 N/A N/A 3.3 N/A 0.6
2013 3.4 7.4 2.0 2.2 2.9 N/A N/A 8.0 N/A 0.5
2014 4.3 3.8 1.0 1.1 2.4 N/A N/A 3.7 N/A 2.7
2015 4.8 8.3 -0.5 -0.6 1.8 N/A N/A 6.0 N/A 4.9
2016 1.3 3.0 -0.2 -0.2 2.0 N/A N/A 3.9 N/A 3.4
2017 4.4 -2.2 3.7 3.7 3.5 N/A N/A -1.9 N/A 3.0
2018 3.0 2.3 1.6 1.5 2.6 N/A N/A 2.7 N/A 4.9
2019 2.5 3.1 1.5 1.5 2.4 N/A N/A 2.4 N/A 3.9
2020 2.2 2.2 1.7 1.6 2.1 N/A N/A 2.2 N/A 1.7
2021 1.7 1.8 1.4 1.4 1.8 N/A N/A 1.7 N/A 1.6
2022 1.8 1.9 1.5 1.5 1.9 N/A N/A 1.9 N/A 1.6
2023 1.8 2.0 1.7 1.7 1.9 N/A N/A 1.9 N/A 1.6
2024 1.6 1.7 1.8 1.8 1.8 N/A N/A 1.7 N/A 1.5
Sector Rank 10/12 8/12 9/12 9/12 10/12 N/A N/A 9/12 N/A N/A
Economy Rank 359/694 363/694 283/694 276/694 337/694 N/A N/A 323/694 N/A N/A
Key Ratios Imports/ Exports/ Revenue per Share of the

IVA/Revenue Demand Revenue Employee Wages/Revenue Employees Average Wage Economy
(%) (%) (%) ($’000) (%) per Est. ($) (%)
2010 42.35 N/A N/A 51.09 35.75 14.97 18,262.47 0.36
2011 41.15 N/A N/A 52.90 34.75 14.99 18,383.95 0.35
2012 41.44 N/A N/A 52.91 34.54 15.83 18,276.13 0.36
2013 43.07 N/A N/A 53.16 36.07 15.96 19,176.66 0.38
2014 42.87 N/A N/A 54.17 35.87 16.17 19,429.20 0.39
2015 44.29 N/A N/A 55.77 36.29 16.54 20,237.69 0.41
2016 45.02 N/A N/A 55.38 37.22 16.91 20,612.28 0.41
2017 42.20 N/A N/A 55.83 35.00 16.88 19,540.57 0.39
2018 41.91 N/A N/A 56.06 34.88 17.05 19,556.61 0.39
2019 42.17 N/A N/A 56.14 34.84 17.19 19,562.24 0.39
2020 42.19 N/A N/A 56.16 34.83 17.27 19,563.75 0.40
2021 42.24 N/A N/A 56.11 34.86 17.33 19,559.78 0.40
2022 42.28 N/A N/A 56.09 34.87 17.39 19,558.67 0.40
2023 42.33 N/A N/A 56.05 34.89 17.43 19,556.06 0.40
2024 42.38 N/A N/A 55.96 34.94 17.43 19,549.46 0.40
Sector Rank 6/12 N/A N/A 9/12 2/12 4/12 7/12 3/12
Economy Rank 183/694 N/A N/A 660/694 86/694 273/694 620/694 39/694
Figures are in inflation-adjusted 2019 dollars. Rank refers to 2019 data. SOURCE: WWW.IBISWORLD.COM

Industry Financial Ratios

Apr 2017 - Mar 2018 by company revenue
Apr 2014 - Apr 2015 - Apr 2016 - Apr 2017 - Small Medium Large
Mar 2015 Mar 2016 Mar 2017 Mar 2018 (<$10m) ($10-50m) (>$50m)
Liquidity Ratios
Current Ratio 0.8 0.8 0.8 0.8 0.9 0.8 0.5
Quick Ratio 0.6 0.6 0.6 0.6 0.6 0.6 0.4
Sales / Receivables (Trade Receivables
Turnover) n/c n/c n/c n/c n/c n/c 292.8
Days’ Receivables 0.4 n/a 0.4 0.4 0.4 0.4 1.2
Cost of Sales / Inventory (Inventory Turnover) 43.3 43.2 43.6 42.8 44.4 41.4 40.0
Days’ Inventory 8.4 8.4 8.4 8.5 8.2 8.8 9.1
Cost of Sales / Payables (Payables Turnover) 27.2 28.6 26.6 28.6 44.3 19.2 13.4
Days’ Payables 13.4 12.8 13.7 12.8 8.2 19.0 27.2
Sales / Working Capital -86.0 -98.5 -88.3 -87.7 -181.7 -69.2 -22.5
Coverage Ratios
Earnings Before Interest & Taxes (EBIT) /
Interest 5.0 6.0 6.2 4.4 4.7 5.1 2.8
Net Profit + Dep., Depletion, Amort. / Current
Maturities LT Debt 2.7 2.9 2.7 2.6 3.0 2.4 2.7
Leverage Ratios
Fixed Assets / Net Worth 4.2 4.2 4.8 4.9 3.3 8.8 -3.9
Debt / Net Worth 6.6 6.7 8.0 9.6 6.0 12.1 -6.7
Tangible Net Worth -0.3 1.8 -0.2 -2.1 -2.1 3.6 -13.4
Operating Ratios
Profit before Taxes / Net Worth, % 47.5 57.2 57.9 52.8 61.6 41.4 24.3
Profit before Taxes / Total Assets, % 11.7 14.1 14.0 10.9 13.9 9.0 5.4
Sales / Net Fixed Assets 8.4 8.3 7.9 8.2 10.2 6.9 4.8
Sales / Total Assets (Asset Turnover) 3.4 3.3 3.1 3.2 3.7 2.7 2.0
Cash Flow & Debt Service Ratios (% of sales)

Cash from Trading 66.2 67.2 68.6 68.4 67.5 70.2 69.7
Cash after Operations 7.9 8.5 9.0 8.2 7.8 8.8 8.4
Net Cash after Operations 8.0 8.8 9.2 8.3 8.1 8.9 8.3
Cash after Debt Amortization 2.1 2.5 2.4 1.9 1.7 2.3 2.8
Debt Service P&I Coverage 2.8 3.1 3.0 2.6 2.7 2.7 2.3
Interest Coverage (Operating Cash) 8.9 10.7 10.1 8.7 8.0 11.7 6.3
Assets, %
Cash & Equivalents 18.9 19.2 19.6 19.1 20.9 17.1 10.3
Trade Receivables (net) 1.5 1.6 1.4 1.6 1.5 1.6 2.6
Inventory 5.2 4.8 4.5 4.5 5.1 3.1 3.0
All Other Current Assets 2.2 2.1 2.3 2.8 3.2 2.0 1.9
Total Current Assets 27.8 27.7 27.9 28.0 30.7 23.8 17.8
Fixed Assets (net) 46.7 46.0 45.9 45.1 44.3 46.4 48.3
Intangibles (net) 15.4 16.5 17.0 18.0 15.3 22.7 27.0
All Other Non-Current Assets 10.2 9.9 9.2 8.9 9.7 7.1 6.8
Total Assets 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Total Assets ($m) 55,786.9 63,571.0 58,403.2 62,722.6 4,389.9 12,091.0 46,241.7
Liabilities, %
Notes Payable-Short Term 4.4 4.7 4.3 4.6 5.7 1.9 2.3
Current Maturities L/T/D 4.9 5.1 5.4 5.3 4.7 7.2 5.9
Trade Payables 9.3 8.0 7.6 7.6 8.0 6.7 7.0
Income Taxes Payable 0.1 0.2 0.1 0.2 0.2 0.1 0.1
All Other Current Liabilities 19.9 18.5 19.6 19.0 22.1 11.7 12.2
Total Current Liabilities 38.6 36.5 37.1 36.7 40.7 27.6 27.5
Long Term Debt 34.2 34.2 36.9 37.1 34.2 40.8 49.6
Deferred Taxes 0.2 0.1 0.1 0.1 n/a 0.1 0.8
All Other Non-Current Liabilities 12.0 10.9 9.2 10.2 11.8 5.2 8.5
Net Worth 15.1 18.3 16.8 15.9 13.2 26.3 13.6
Total Liabilities & Net Worth ($m) 55,786.9 63,571.0 58,403.2 62,722.6 4,389.9 12,091.0 46,241.7
Maximum Number of Statements Used 5,949 6,247 5,566 5,616 3,905 1,151 560
Source: RMA Annual Statement Studies, rmahq.org. RMA data for all industries is derived directly from more
than 260,000 statements of member financial institutions’ borrowers and prospects.
Note: For a full description of the ratios refer to the Key Statistics chapter online.

Jargon & Glossary
Industry Jargon BACK-OF-OFFICEAdministrative operations that LIMITED-SERVICE RESTAURANTA restaurant that

support the primary business of the company. provides guests with meals that are typically ordered at
CHAIN RESTAURANTSRestaurants that share a brand, a counter, served with little or no service, and are paid
central management and usually have standardized for before eating.
business methods and practices. SINGLE-LOCATION RESTAURANTUsually an
FOOD SERVICEIndustry includes restaurants, catering owner-operated restaurant with significant and direct
and fast-food establishments, bars and taverns and input by the owners into the business.
other establishments that provide food for guests.
FULL-SERVICE RESTAURANTA restaurant that
provides guests with sit-down meals that include table
service by wait staff.
IBISWorld Glossary BARRIERS TO ENTRYHigh barriers to entry mean that IMPORTSTotal value of industry goods and services
new companies struggle to enter an industry, while low brought in from foreign countries to be sold in the
barriers mean it is easy for new companies to enter an United States.
industry. INDUSTRY CONCENTRATIONAn indicator of the
CAPITAL INTENSITYCompares the amount of money dominance of the top four players in an industry.
spent on capital (plant, machinery and equipment) with Concentration is considered high if the top players
that spent on labor. IBISWorld uses the ratio of account for more than 70% of industry revenue.
depreciation to wages as a proxy for capital intensity. Medium is 40% to 70% of industry revenue. Low is less
High capital intensity is more than $0.333 of capital to than 40%.
$1 of labor; medium is $0.125 to $0.333 of capital to $1 INDUSTRY REVENUEThe total sales of industry goods
of labor; low is less than $0.125 of capital for every $1 of and services (exclusive of excise and sales tax); subsidies
labor. on production; all other operating income from outside
CONSTANT PRICESThe dollar figures in the Key the firm (such as commission income, repair and service
Statistics table, including forecasts, are adjusted for income, and rent, leasing and hiring income); and
inflation using the current year (i.e. year published) as capital work done by rental or lease. Receipts from
the base year. This removes the impact of changes in interest royalties, dividends and the sale of fixed
the purchasing power of the dollar, leaving only the tangible assets are excluded.
“real” growth or decline in industry metrics. The inflation INDUSTRY VALUE ADDED (IVA)The market value of
adjustments in IBISWorld’s reports are made using the goods and services produced by the industry minus the
US Bureau of Economic Analysis’ implicit GDP price cost of goods and services used in production. IVA is
deflator. also described as the industry’s contribution to GDP, or
DOMESTIC DEMANDSpending on industry goods and profit plus wages and depreciation.
services within the United States, regardless of their INTERNATIONAL TRADEThe level of international
country of origin. It is derived by adding imports to trade is determined by ratios of exports to revenue and
industry revenue, and then subtracting exports. imports to domestic demand. For exports/revenue: low is
EMPLOYMENTThe number of permanent, part-time, less than 5%, medium is 5% to 20%, and high is more
temporary and seasonal employees, working proprietors, than 20%. Imports/domestic demand: low is less than
partners, managers and executives within the industry. 5%, medium is 5% to 35%, and high is more than
ENTERPRISEA division that is separately managed and 35%.
keeps management accounts. Each enterprise consists LIFE CYCLEAll industries go through periods of growth,
of one or more establishments that are under common maturity and decline. IBISWorld determines an
ownership or control. industry’s life cycle by considering its growth rate
ESTABLISHMENTThe smallest type of accounting unit (measured by IVA) compared with GDP; the growth rate
within an enterprise, an establishment is a single of the number of establishments; the amount of change
physical location where business is conducted or where the industry’s products are undergoing; the rate of
services or industrial operations are performed. Multiple technological change; and the level of customer
establishments under common control make up an acceptance of industry products and services.
enterprise.
EXPORTSTotal value of industry goods and services sold
by US companies to customers abroad.

Jargon & Glossary
IBISWorld Glossary NONEMPLOYING ESTABLISHMENTBusinesses with WAGESThe gross total wages and salaries of all
no paid employment or payroll, also known as employees in the industry. The cost of benefits is also
continued nonemployers. These are mostly set up by self-employed included in this figure.
individuals.
PROFITIBISWorld uses earnings before interest and tax
(EBIT) as an indicator of a company’s profitability. It is
calculated as revenue minus expenses, excluding
interest and tax.
VOLATILITYThe level of volatility is determined by
averaging the absolute change in revenue in each of the
past five years. Volatility levels: very high is more than
±20%; high volatility is ±10% to ±20%; moderate
volatility is ±3% to ±10%; and low volatility is less than
±3%.

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WWW.IBISWORLD.

COM Single Location Full-Service Restaurants in the USOctober 2019 1

This report was provided to

NAICS 722511b, SIC 5812.

IBISWorld Industry Report

2 About this Industry 19 International Trade 32 Regulation and Policy

www.ibisworld.com | 1-800-330-3772 | info @ibisworld.com

About this Industry

Main Activities The primary activities of this industry are

The major products and services in this industry are

Similar Industries 44529 Specialty Food Stores in the US

72211a Chain Restaurants in the US

72232 Caterers in the US

72241 Bars & Nightclubs in the US

72221b Coffee & Snack Shops in the US

72221a Fast Food Restaurants in the US

Provided to: University of North Texas (2133793585) | 17 December 2019

About this Industry

Additional Resources For additional information on this industry

IBISWorld writes over 1000 US

Provided to: University of North Texas (2133793585) | 17 December 2019

Key Statistics Revenue Annual Growth 14–19 Annual Growth 19–24

$9.3bn $62.2bn 165,872

Key External Drivers

Industry Structure Life Cycle Stage Mature Regulation Level Medium

Provided to: University of North Texas (2133793585) | 17 December 2019

Key External Consumer Consumer spending Consumer spending is expected to

Provided to: University of North Texas (2133793585) | 17 December 2019

Consumer spending Households earning more than $100,000

Provided to: University of North Texas (2133793585) | 17 December 2019

Current The Single Location Full-Service

or quick-service meal options have

Provided to: University of North Texas (2133793585) | 17 December 2019

Changing consumer Full-service restaurants have had to

Provided to: University of North Texas (2133793585) | 17 December 2019

Turnover and burnout There is a high level of turnover

Provided to: University of North Texas (2133793585) | 17 December 2019

Industry The Single Location Full-Service

Industry Conditions: Intense competition, particularly

Provided to: University of North Texas (2133793585) | 17 December 2019

More Drivers - Full-service restaurant operators are

Provided to: University of North Texas (2133793585) | 17 December 2019

Provided to: University of North Texas (2133793585) | 17 December 2019

Provided to: University of North Texas (2133793585) | 17 December 2019

Products & Markets

Supply Chain KEY BUYING INDUSTRIES

KEY SELLING INDUSTRIES

Products and Services Products and services segmentation (2019)

The Single Location Full-Service have a large component of seafood on

Provided to: University of North Texas (2133793585) | 17 December 2019

Products & Markets

Provided to: University of North Texas (2133793585) | 17 December 2019

Products & Markets

Provided to: University of North Texas (2133793585) | 17 December 2019

Products & Markets

Demand based on changes in their economic and the industry as demographics of a

Provided to: University of North Texas (2133793585) | 17 December 2019

Products & Markets

Major Markets Major market segmentation (2019)

COM Single Location Full-Service Restaurants in the USOctober 2019 1