c-rest-RTR4Y1X3-Lucas Jackson

Despite high closing rates, the US restaurant business is booming

618,000

Restaurants close all the time, but the number of eating and drinking establishments in the US has surged by 30% over the last 15 years, to 618,000 in 2016.

Published   |  Photo by Reuters/Lucas Jackson
c-rest-RTR4Y1X3-Lucas Jackson
618,000

Number of eating and drinking establishments in the US

c-rest-RTR4Y1X3-Lucas Jackson
618,000

The rise of celebrity chefs and food as popular culture are some of the factors driving the trend. Americans are cooking less, and now spend more money at restaurants than on groceries.

c-rest-RTR4Y1X3-Lucas Jackson
618,000

Retail spending in the US between 1992 and 2016

c-rest-RTR4Y1X3-Lucas Jackson
618,000

That doesn’t mean it’s easy to make it in the restaurant business, where food, real estate, and labor prices are all surging.

c-rest-RTR4Y1X3-Lucas Jackson
618,000

Competition is tougher than ever, and some analysts say that supply is outstripping demand. Various studies show that 20% to 60% of restaurants don’t even survive a year.

Published

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