Restaurants Drive The Economy

The National Restaurant Association (NRA) estimates that on a typical day in America, 133 million individuals will patronize a restaurant of some description, generating approximately $1.5 billion in sales. As a result, food and drink sales have increased from $42.8 billion in 1970 to $379 billion in 2000 and are projected to reach $558.3 billion in 2008 – that’s 4% of the US Gross Domestic Product. Overall, the economic impact of the restaurant industry is expected to exceed $1.5 trillion in 2008.

Opening a typical 6,000-square-foot casual dining restaurant like a Chili's or Olive Garden can cost as much as $2.5 million. That price tag includes $1.5 million or more to build and finish out the building, a process that can employ 30 to 40 carpenters, electricians, plumbers and finishers. Fixtures, furniture and equipment for a 150-seat restaurant – stoves, refrigerators, dishwashers, etc. – can cost $250-300,000, including $15-20,000 for place settings and cookware.

Then there's the payroll. A typical casual dining restaurant with $3 million in yearly sales may employ 100 people or more and have an annual payroll of close to $1 million. About 30% of sales goes toward buying food – much of it from local producers and distributors. Then there's the other outside services such as laundry, janitorial, repair and utilities. The list goes on.

To put the industry in a more personal light, the NRA estimates that over 70% of the country’s eating and drinking establishments are single-unit, independent, largely “Mom ‘n Pop” operations. These small businesses have a large impact.

• Every dollar spent by consumers in restaurants generates an additional $2.34 spent in our nation’s economy.
• Each additional dollar spent in restaurants generates an additional $0.99 in household earnings throughout the economy.
• Every additional $1 million in restaurant sales generates an additional 37 jobs for the economy.

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