Chain Restaurants in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: March 2024
NAICS 72211aRevenue
$227.6bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
2m
Businesses
139k
Wages
$XX.Xbn
Chain Restaurants in the US industry analysis
Restaurants have swallowed economic catastrophe, surging recovery and record inflation in the past few years as they continue to serve the public's appetite. Before the pandemic, per capita disposable income increased and unemployment reached record lows, giving rise to more lavish spending on sit-down meals. However, the pandemic's severe detriment to the food service sector, including 2021's aggressive recovery, mitigated long-run growth. From 2019 to 2024, chain restaurant revenue expanded at a 3.9% CAGR to $227.6 billion, including a 0.4% decline in 2024, where profit reached 6.3%.
Massive part-time employment, a high establishment-to-operator ratio and heavy external competition differentiate the chain restaurant. However, the back-of-house technology many restaurant franchisees employ allows them to benefit from a parent chain's digital ordering system, unified marketing and negotiation leverage. Despite improving efficiency across franchises helping to keep menu prices low, cost-conscious consumers are considering other options, from meal kit delivery to fast-casual chains.
Even while experiencing 2022's historic inflation, restaurants devised solutions to widen an 8.7% revenue expansion. Market leaders are pursuing international growth to balance national chain saturation, while niche chains pop up to provide customized food options and thematic, personalized service. In addition, restaurant chains of all sizes implement technology to speed up kitchen tasks, take mobile orders and track social influence. By 2029, revenue will rise at a CAGR of 1.7% to $248.0 billion.
Trends and Insights
- Restaurants have successfully surpassed pre-pandemic revenue figures but are struggling to keep diners coming during high inflation. Numerous chains have raised prices or reduced portion sizes to be financially stable.
- American food dominates the chain market. The solid acceptance of burgers, barbecue, wings and pie makes US cuisine the default option for many customers nationwide.
- Chain restaurants are frequently located in regions where the local concentrates. Cultures near the United States border typically have a high concentration of chains serving international food.
- Chain restaurants have more than five locations. Acquisitions in the chain restaurant frequently involve primarily managerial changes and not restaurant re-theming.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 3.9 % over the past five years, to reach an estimated $227.6bn in 2024.
Trends and Insights
Chains survive COVID-19 with relatively minimal losses
- In early 2020, chain restaurant operations halted nearly overnight due to the pandemic; in the initial panic, many estimates predicted 20.0% to 50.0% of all restaurants would close, with chains faring better than their independent competitors.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Chains suffered from both COVID-19 and inflation
- While the restaurant industry has fully recovered from the pandemic, this hides the pain many chain operators are experiencing with inflation and recession concerns.
Biggest companies in the Chain Restaurants in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Darden Restaurants Inc. | 8,968.1 | 889.9 | 9.9 |
To view the market share and analysis for all 1 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 American, Italian/pizza and Seafood. American is the largest segment of the Chain Restaurants in the US.
Trends and Insights
American chains appeal to the broadest market
- Chains that offer options representing traditional American cuisines, including burgers, steaks, salads, fries and sugar-centered desserts, perform extraordinarily well. This type of food is heavily ingrained in United States culture and has therefore, been the main driver of the chain restaurant's growth over the past half-century.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Single Location Full-Service Restaurants in the US
- Caterers in the US
- Bars & Nightclubs in the US
- Coffee & Snack Shops in the US
- Fast Food Restaurants in the US
Complementors
- There are no industries to display.
International industries
- Full-Service Restaurants in Canada
- Restaurants in Australia
- Cafes and Restaurants in New Zealand
- Full-Service Restaurants in the UK
- Restaurants and Takeaways in Ireland
Table of Contents
About this industry
Industry definition
The industry consists of chain and franchised restaurants of five or more establishments that provide food services to patrons that order, are served while seated (i.e. wait service) and pay after eating. These establishments may provide this type of food service to patrons in combination with alcoholic and other beverages.
What's included in this industry?
Full-service restaurant operation (wait service at tables)Chain full-service restaurant operation (directly owned and operated by management)Franchised full-service restaurant operation (under franchise agreements with franchisers)Companies
Darden Restaurants Inc.Purchase this report to view all 1 major companies in this industry.
Related Terms
CHAIN RESTAURANTSFRANCHISED RESTAURANTSFAST-CASUAL RESTAURANTSAVERAGE CHECKCOMPARABLE STORE SALESIndustry Code
NAICS 722511 - Chain Restaurants 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
Restaurants have successfully surpassed pre-pandemic revenue figures but are struggling to keep diners coming during high inflation. Numerous chains have raised prices or red...
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 (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- 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
American food dominates the chain market. The solid acceptance of burgers, barbecue, wings and pie makes US cuisine the default option for many customers nationwide.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
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
Chain restaurants are frequently located in regions where the local concentrates. Cultures near the United States border typically have a high concentration of chains serving...
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 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
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
Chain restaurants have more than five locations. Acquisitions in the chain restaurant frequently involve primarily managerial changes and not restaurant re-theming.
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 2019-2024
- 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
The industry’s largest management companies each hold a portfolio of chains. A change in the availability or price of one input is unlikely to sink the portfolio either.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Darden Restaurants Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Darden Restaurants Inc., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Successful chains manage hiring restrictions, compensation and wage laws before they become an issue for franchises. OSHA and the National Restaurant Association provide reso...
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 (2014-2029)
- Assistance historical data and forecast (2014-2029)
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
Rising expectations surrounding worker pay and compensation drive up wage costs for restaurant chains. Pending legislation will likely force employers to compensate workers f...
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 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
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 (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
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 Chain Restaurants in the US industry in United States in 2024?
The market size of the Chain Restaurants in the US industry in United States is $227.6bn in 2024.
How many businesses are there in the Chain Restaurants in the US industry in 2024?
There are 139k businesses in the Chain Restaurants in the US industry in United States, which has grown at a CAGR of 1.8 % between 2019 and 2024.
Has the Chain Restaurants in the US industry in United States grown or declined over the past 5 years?
The market size of the Chain Restaurants in the US industry in United States has been growing at a CAGR of 3.9 % between 2019 and 2024.
What is the forecast growth of the Chain Restaurants in the US industry in United States over the next 5 years?
Over the next five years, the Chain Restaurants in the US industry in United States is expected to grow.
What are the biggest companies in the Chain Restaurants in the US market in United States?
The biggest company operating in the Chain Restaurants market in United States is Darden Restaurants Inc.
What does the Chain Restaurants in the US in United States include?
Full-service restaurant operation (wait service at tables) and Chain full-service restaurant operation (directly owned and operated by management) are part of the Chain Restaurants in the US industry.
Which companies have the highest market share in the Chain Restaurants in the US in United States?
The company holding the most market share in United States is Darden Restaurants Inc..
How competitive is the Chain Restaurants in the US industry in United States?
The level of competition is high and increasing in the Chain Restaurants in the US industry in United States.
