By Mike McCrawPublished On: August 2, 2025

Sector Spotlight: Restaurant

In 2025, the restaurant industry is projected to reach $1.5 trillion in total sales, marking a 4% year over year increase on 2024. With over 700,000 restaurants and food service locations nationwide and a workforce of 15.9 million (up 200,000 from 2024), the sector remains a major driver of employment and economic activity.

Key Trends

AI and automation are transforming operations.

Restaurants are evolving into lifestyle brands, with 87% of diners open to buying merchandise, cookbooks, or meal kits. Digital marketing plays a key role in discovery, with 1 in 3 diners using Google to find restaurants.

Multi-Unit & Chain Segment

Quick-service restaurants (QSR) chains dominate the industry, with approximately 208,000 locations, while full-service chains have approximately 137,500.

Fast-casual restaurants continue rapid expansion, with a projected 13.7% CAGR through 2029. QSR revenues are forecast to exceed $330 billion in 2025.

Projected Fast-Casual Market Size Over Time

Chain Segment - Restaurant Sector Spotlight

M&A and Market Restructuring

M&A activity remains strong in Food & Beverage, with approximately 100 deals per quarter. Strategic buyers and private equity are targeting tech-enabled, scalable, and health-forward brands.

2025 Deals

However, financial strain is visible: Red Lobster, TGI Fridays, Rubio’s Coastal Grill, and others have filed for bankruptcy or closed stores. Hooters of America filed Chapter 11 and sold over 100 units to franchisees.

Consumer Behavior

Off-premises dining continues to dominate, with 75% preferring drive-thru, takeaway or delivery, highlighting convenience as a top priority. Experience matters, with 51% of using apps for deals and loyalty rewards.

Stay tuned for our article, a deeper dive into the External Factors Impacting the Sector.

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Mike McCraw, Managing Director and Food & Beverage Team Leader at FOCUS, is an experienced entrepreneur and investment banker and has over 30 years’ experience serving clients with mergers & acquisitions, advisory services, and business consulting. Prior to joining FOCUS, Mr. McCraw led the Consumer Team at Founders Investment Banking. While there, he helped launch a well-attended annual educational and networking event called the Multi-Unit Summit, bringing together top brand and industry leaders in a relaxed, high-quality environment. Mr. McCraw has also served as CFO for several multi-unit companies. In addition, Mr. McCraw started and led the Outsourced Services Practice Group at Warren Averett, one of the largest CPA firms in the Southeast. Before Warren Averett, Mr. McCraw co-founded and served as managing principal of the Birmingham office of a regional CPA and consulting firm. He also started and helped lead a lower middle market private capital group focused on adding value alongside successful entrepreneurs. Mr. McCraw has served as CFO/COO of a regional construction sub-contractor, CFO of a manufacturing company and Controller at two leading hospitals. Mr. McCraw is a Certified Public Accountant (CPA) and has a Master’s of Business Administration (MBA) from the University of Alabama at Birmingham. Mr. McCraw received his undergraduate degree in Accounting from Troy University, where he was quarterback on a National Championship team.