Accommodation and Food Services in the US - Market Research Report (2013-2028)
New York, United States
Last Updated: November 2023
NAICS 72Revenue
$1.3tr
Past 5-Year Growth
Profit
$XX.Xbn
Employees
14m
Businesses
1m
Wages
$XXX.Xbn
Accommodation and Food Services in the US industry analysis
The U.S. Accommodation and Food Service industry has undergone a unique transformation in response to technological advancements and changing consumer preferences. The progression from primarily traditional dining and lodging paradigms towards digital marketplace models and experience-based venues is a key trend shaping this sector's recent past and future trajectory.
Historically, this industry has demonstrated resilience in the face of economic downturns, demonstrating consistent growth due to increased disposable incomes of consumers and higher tourism rates. However, throughout 2020, the sector faced unprecedented challenges because of the pandemic. Shelter-in-place policies and social distancing guidelines led to dramatic declines in demand, forcing businesses to modify operational strategies for survival.
But even amid the COVID crisis, the sector revealed its adaptability as sector revenue expanded at a CAGR of 2.1% to $1.3 trillion through 2023. Rapid culling occurred, with the industry shifting towards a digital presence, contactless services, and home-oriented food services. Adapting to online platforms was critical for survival, yet accelerated expansion into new markets. Takeout, app-based services, and ghost kitchens emerged as growth drivers, blurring traditional boundaries. In 2023, accommodation and food services will leverage these trends to continue recovery, with revenue growth of 5.9% in 2023 alone.
Unquestionably, technology and innovation will continue to shape the Accommodation and Food Service sector. Despite the temporary decrease in demand for large-scale accommodation providers due to public health concerns, there's been an advantaged rise in the popularity of rental property platforms and boutique experiences despite their controversiality.
Additionally, progressive legislation that protects gig-economy workers in the food delivery sector may alter the competitive dynamics among tech-powered food and lodging service providers. To stay competitive, providers must navigate changing regulations while advancing other novel segments, such as health-first meal-prep or fast-casual dining concepts. Overall, successful adaptation will help the sector expand at an annualized rate of 3.2% to $1.6 trillion over the next five years.
Although the U.S. Accommodation and Food Service industry faced drastic COVID-induced disruptions, it utilized these interruptions to accelerate its digital transformation immensely and innovate alternative service streams. Hence, the tourism support sector's revitalization exemplifies the way disruption can act as a catalyst for innovation and future market opportunities.
Trends and Insights
- The COVID-19 pandemic was disruptive to the Accommodation and Food Services sector. The pandemic affected not only indoor operations, but also reduced customers' purchasing power for sector services.
- Accommodation service providers contended with a low number of international guests amid the COVID-19 pandemic. For instance, casino hotels welcome many foreign visitors annually and this abrupt decline caused significant losses to these hotels.
- Sector establishments concentrate in areas with large cities, amusement parks and other tourist attractions. Locations close to crucial destination cities and travel locations for domestic and international visitors benefit from increased volumes of individuals in the region.
- Barriers to entry for most industries in the sector are low, resulting in a highly fragmented landscape. As a result, competition is fierce between establishments in those industries.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 2.1 % over the past five years, to reach an estimated $1.3tr in 2023.
Trends and Insights
The COVID-19 pandemic led to regulations restricting travel and public gatherings
- These restrictions resulted in an estimated 70.0% of direct hotel employees being laid off or furloughed during the first quarter of 2020, according to the American Hotel and Lodging Association (AHLA).
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The US' economic growth will have a continued positive influence on the sector
- The sharp incline in the unemployment rate will reverse, approaching pre-pandemic levels.
Biggest companies in the Accommodation and Food Services in the US
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Starbucks Corporation | 26,004.2 | 4,086.9 | 15.7 | |
Darden Restaurants Inc. | 10,480.0 | 1,199.0 | 11.4 | |
Mcdonald’s Corporation | 9,937.4 | 4,490.1 | 45.2 |
To view the market share and analysis for all 6 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Traveler accommodation, Other accommodations and Special food services. Traveler accommodation is the largest segment of the Accommodation and Food Services in the US.
Trends and Insights
Restaurants and other eating places provide food service at a brick-and-mortar location
- This industry group includes restaurants that serve their customers while seated and have them pay after eating or serve customers in a line and pay before eating.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Arts, Entertainment and Recreation in the US
- Non-Hotel Casinos in the US
Complementors
- Retail Trade in the US
- Arcade, Food & Entertainment Complexes in the US
International industries
- Global Hotels & Resorts
- Global Fast Food Restaurants
- Global Tourism
- Hotels & Motels in Canada
- Hotels in the UK
Table of Contents
About this industry
Industry definition
This sector is primarily occupied with providing lodging and food services to consumers for immediate consumption. This includes hotels, motels and other accommodation formats along with full-service restaurants, limited-service restaurants, food contractors and drinking places. This sector excludes civic and social organizations and entertainment facilities, such as theaters and amusement parks, that provide food services as a secondary product.
What's included in this industry?
Hotels and motel services, including casino hotelsCampground and RV park servicesOther accommodation servicesFull-service restaurantsFast food restaurantsCoffee and snack shopsCatering servicesStreet vending locationsBars and nightclubsOther food servicesCompanies
Starbucks CorporationDarden Restaurants Inc.Mcdonald’s CorporationPurchase this report to view all 6 major companies in this industry.
Related Terms
REVENUE PER AVAILABLE ROOM (REVPAR)LIMITED-SERVICE RESTAURANTCHAIN RESTAURANTSFULL-SERVICE RESTAURANTFOOD SERVICEIndustry Code
NAICS 72 - Accommodation and Food Services in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The COVID-19 pandemic was disruptive to the Accommodation and Food Services sector. The pandemic affected not only indoor operations, but also reduced customers' purchasing p...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Accommodation service providers contended with a low number of international guests amid the COVID-19 pandemic. For instance, casino hotels welcome many foreign visitors annu...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Sector establishments concentrate in areas with large cities, amusement parks and other tourist attractions. Locations close to crucial destination cities and travel location...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each state in 2023
- Number and share of revenue each state accounts for in 2023
- Number and share of wages each state accounts for in 2023
- Number and share of employees in each state in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Barriers to entry for most industries in the sector are low, resulting in a highly fragmented landscape. As a result, competition is fierce between establishments in those in...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
No single company accounts for more than 5.0% of the market share.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Starbucks Corporation's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Darden Restaurants Inc.'s performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Mcdonald’s Corporation's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 3 additional companies
Detailed analysis
- Description and key data for Starbucks Corporation, and factors influencing its performance in the industry
- Description and key data for Darden Restaurants Inc., and factors influencing its performance in the industry
- Description and key data for Mcdonald’s Corporation, and factors influencing its performance in the industry
- Description, key data and performance trends for 3 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Increasing inflation rates might deter customers from visiting sector establishments because per capita disposable has declined. Income-restricted individuals will opt for ho...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Enterprises in the food services subsector endure much lower profit levels than those in the accommodation subsector because accommodation service providers can place higher p...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Industry Multiples (2016-2021)
- Industry Tax Structure (2016-2021)
- Income Statement (2016-2021)
- Balance Sheet (2016-2021)
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Accommodation and Food Services in the US industry in United States in 2024?
The market size of the Accommodation and Food Services in the US industry in United States is $1.3tr in 2024.
How many businesses are there in the Accommodation and Food Services in the US industry in 2023?
There are 1m businesses in the Accommodation and Food Services in the US industry in United States, which has grown at a CAGR of 2.3 % between 2018 and 2023.
Has the Accommodation and Food Services in the US industry in United States grown or declined over the past 5 years?
The market size of the Accommodation and Food Services in the US industry in United States has been growing at a CAGR of 2.1 % between 2018 and 2023.
What is the forecast growth of the Accommodation and Food Services in the US industry in United States over the next 5 years?
Over the next five years, the Accommodation and Food Services in the US industry in United States is expected to grow.
What are the biggest companies in the Accommodation and Food Services in the US market in United States?
The biggest companies operating in the Accommodation and Food Services market in United States are Starbucks Corporation, Darden Restaurants Inc. and Mcdonald’s Corporation
What does the Accommodation and Food Services in the US in United States include?
Hotels and motel services, including casino hotels and Campground and RV park services are part of the Accommodation and Food Services in the US industry.
Which companies have the highest market share in the Accommodation and Food Services in the US in United States?
The company holding the most market share in United States is Starbucks Corporation.
How competitive is the Accommodation and Food Services in the US industry in United States?
The level of competition is moderate and steady in the Accommodation and Food Services in the US industry in United States.
