Latest Restaurant Industry Statistics & Analysis

Last Updated on 21/12/2021 by TheDigitalHacker

Introduction

The restaurants are recovering from the major setback they had to face due to the covid-19.  Restaurant owners had to come up with new ways of delivering their food through no-contact food delivery services and maintain high standards of hygiene. Online presence and reviews by customers of restaurants are becoming a major source of information that drives the restaurant’s success rate along with good quality food.

General Overview

1. In 2020, the restaurant industry’s projected worth was adjusted to $659 billion in sales from an initial projection of $899 billion.
2. This loss of $240 billion was due to the COVID-19 pandemic. (Restaurant Dive)
3. As a result of the COVID-19 pandemic, in the U.S., there was a 65.91% year-on-year decline in consumers dining in restaurants as of January 2021. (Statista)
4. The restaurant industry has a projected annual sale of $863 billion, which is 4% of the country’s gross domestic product (GDP). (NRA 2019 Restaurant Industry Factbook)
5. As of May 2019, the Restaurant Performance Index (RPI) was 101.6. An RPI above 100 is considered as the period of growth for restaurants.
6. 95% of restaurant owners say that the overall efficiency of their establishments is improved by the use of technology. (Toast)
7. 56% of consumers want to know how their personal information is being used by restaurants. (Technomic)
8. By 2025, digital channel sales are expected to account for 30% of total sales for U.S. restaurants. (Facebook)
9. Compared to dine-in traffic, digital ordering and delivery have grown 300% faster since 2014. (Nation’s Restaurant News)
10. When choosing a restaurant, 72% Of diners place food quality over everything else. (Toast)
11. The biggest food/beverage trend right now is CBD-infused drinks according to 75% of surveyed chefs. (Netwaiter)
12. There were more than 1 million restaurants in the US in 2020.
13. The restaurant industry employs 9.9 million workers.
14. 90% of guests check out a restaurant online before eating there.
15. A one-star increase on Yelp can drive a restaurant’s profit by up to 9%.
16. The average cost of replacing a restaurant employee is $5,864.
17. 27% of people who order food are willing to pay extra for fast delivery.
18. 51% of restaurateurs say hiring, training, and retaining staff is the biggest challenge they face.
19. 95% of restaurant owners say using technology improves the overall efficiency of their eateries.
20. Table service restaurants make approximately $300 billion in sales annually.
21. The restaurant performance index was at 97.5 in November 2020
22. 33% of people read other guests’ reviews before selecting a place to eat.
23. 91% of restaurant operators use Facebook to promote their business, while 78% use Instagram as well.
24. 75% of people would stay away from a restaurant that has negative reviews about its cleanliness. (Business Wire)
25. A one-star increase on Yelp can boost a restaurant’s profits by up to 9%. (Harvard Business School)
26. 33% of Americans would never eat at a restaurant with a rating lower than four stars.
27. 79% of customers trust online reviews as much as they trust personal recommendations. (Bright Local)
28. 50% of consumers only trust online reviews that have been left in the past 14 days. (Bright Local)
29. 69% of millennial diners will take a picture of their food for Instagram before eating it.
30. Almost six in 10 adults have worked in a restaurant at some point in their lives.

A few facts to consider

1. 90% of guests research a restaurant online before dining—more than any other business type.
2. 57% of those guests viewed restaurant websites before selecting where to dine.
3. 52% of all worldwide online traffic was generated through mobile phones, up from 50% in the previous year.
4. Digital channel sales are on pace to reach 30% of total sales for US restaurants by 2025.
5. 60% of U.S. consumers order delivery or takeout once a week.
6. 34% of consumers spend at least $50 per order when ordering food online.
7. 20% of consumers say they spend more on off-premise orders compared to a regular dine-in experience.
8. Digital ordering and delivery have grown 300% faster than dine-in traffic since 2014.
9. 70% of consumers say they’d rather order directly from a restaurant, preferring that their money goes straight to the restaurant and not a third party. This makes the value of a native online ordering solution much stronger for restaurants.
10. 45% of consumers say that offering mobile ordering or loyalty programs would encourage them to use online ordering services more often.
11. 63% of consumers agree that it is more convenient to get delivery than dining out with a family.
12. 60% of restaurant operators say that offering delivery has generated incremental sales.
13. Orders placed via smartphone and mobile apps will become a $38 billion industry in 2020.
14. Delivery sales could rise an annual average of more than 20% to $365 billion worldwide by 2030, from $35 billion.

Restaurant Employment Statistics

1. There are 15.1 million restaurant industry employees in the United States.
2. 1.6 million new restaurant jobs will be created by 2028.
3. The restaurant workforce makes up 10% of the overall U.S. workforce.
4. 3 in 10 restaurateurs cite staffing as a challenge.
5. 9 in 10 restaurant managers started at entry-level.
6. 8 in 10 restaurant owners started their industry careers in entry-level positions.
7. 9 in 10 restaurants have fewer than 50 employees.
8. 76 percent of restaurateurs are looking for labor-management tools in their restaurant point of sale.

Average Pay

1. The average base salary for a restaurant employee in the U.S. is $11.54 per hour.
2. Chefs earn an average of $15.08 per hour in the U.S.
3. Restaurant management makes a median salary of $55,516 per year in the U.S.
4. Restaurant workers in the UK earn an average of £25,161 annually.
5. UK chefs earn an average of £10.16 per hour.
6. In the UK, restaurant managers earn an average base pay of £32,517 per year.
7. Canadian restaurant staff earns $20.46 on average per hour.
8. Chefs in Canada earn an average of $19.72 per hour.
9. Restaurant managers in Canada earn an average of $47,343 annually.

Customer Service Restaurant Statistics

1. On average 90% of people surveyed said they read restaurant reviews prior to going out.
2. 77% of guests search out their restaurant’s menu first.
3. 95% of guests report that good customer service is key to their brand loyalty.
4. Customers are 63% prefer to order through your website than through a third party vendor.
5. 70% of guests have reported they became discouraged from visiting a restaurant’s website.
6. 35% of customers say they are only looking for restaurants with high review ratings.
7. Even a one-star increase on Yelp can increase your profits by 2%.
8. The most common complaint is food quality, with 19% of guests disappointed with their meal.
9. 91% of restaurateurs said they want to invest in kitchen automation in 2021.
10. 56% of consumers have expressed concern with how their data is used.
11. 88% of restaurants are reported as switching exclusively to contactless digital menus.

Loyalty Programs Restaurant Statistics

1. Over 90% of all companies have a customer loyalty program.
2. In the U.S. there are 3.3 billion loyalty programs.
3. Paytronix reports that loyalty programs increase guest visits by 20% and that those guests spend 20% more.
4. A Paytronix survey showed that loyalty memberships along with geo-fencing increased restaurant sales by 50%.
5. 72% of U.S. consumers say they are part of a loyalty program.
6. 62% of Gen-Z are influenced by loyalty programs.

Off-Premise Statistics

1. The U.S. was forecasted to net $26.5 billion in off-premise revenue in 2020.
2. Off-premise delivery revenue is projected at $28b by 2023.
3. The UK was expected to earn £8.5 billion in off-premise revenue in 2019.
4. Off-premise dining accounts for 70.74 billion around the world.
5. Millennials order 59% of off-premise orders.
6. Americans order delivery or takeout at least once per week.
7. Off-premise dining channels are forecast to grow to $470b annually by 2025.
8. Percentage of restaurant guests who believe off-premise dining is important to their lifestyle

1. In the U.S. 110,000 restaurants have closed temporarily or permanently due to the pandemic.
2. Prior to the pandemic, the restaurant industry was projected to earn $889 in 2020.
3. The U.S. restaurant industry netted $659 billion, $240 shy of their projected goal.
4. The pandemic drove 163% of restaurant job losses in the UK.
5. From 2019 to April 25, 2021, the UK industry saw a decline in seated restaurants of 36.14%.
6. The UK restaurant industry lost £80.8bn or around £9m every hour due to pandemic lockdowns.
7. Percentage of restaurant guests who say that off-premise dining is essential during the pandemic more than before.

Dining Post-Covid

1. 55% of U.S. restaurant guests are eating at home, rather than on-premise.
2. 59% of Americans feel comfortable going out to eat.
3. Consumers are 68% more likely now to order off-premise than prior to the pandemic.
4. eMarketer reports that in 2021, smartphone restaurant delivery app users will fall to 44.1 million as people return to restaurants.
5. 33% of guests report that they will continue ordering off-premise dining post-pandemic.
6. 44% of customers are tipping more than before.

Conclusion:

The covid pandemic will shift the course of how people dine and order food. The above mentioned depict that the restaurant industry is making a healthy recovery. Restaurant owners will need to re-think their marketing strategies and focus a lot more on maintaining a good online presence to remain profitable with the unpredictable times.