Industries in the Food Services and Drinking Places subsector prepare meals, snacks, and beverages to customer order for immediate on-premises and off-premises consumption. There is a wide range of establishments in these industries. Some provide food and drink only; while others provide various combinations of seating space, waiter/waitress services and incidental amenities, such as limited entertainment. The industries in the subsector are grouped based on the type and level of services provided. The industry groups are full-service restaurants; limited-service eating places; special food services, such as food service contractors, caterers, and mobile food services; and drinking places.
Food services and drink activities at hotels and motels; amusement parks, theaters, casinos, country clubs, and similar recreational facilities; and civic and social organizations are included in this subsector only if these services are provided by a separate establishment primarily engaged in providing food and beverage services.
Excluded from this subsector are establishments operating dinner cruises. These establishments are classified in Subsector 487, Scenic and Sightseeing Transportation because those establishments utilize transportation equipment to provide scenic recreational entertainment.
The Food Services and Drinking Places industry, categorized under NAICS 722, is experiencing several notable trends that are shaping its landscape. One significant trend is the increasing consumer demand for sustainable and locally sourced ingredients. As more people become environmentally conscious and health-oriented, restaurants and bars are focusing on reducing their carbon footprints and supporting local agriculture. This shift not only helps the environment but also attracts a customer base that values ethical consumption.
Another trend is the integration of technology to enhance customer experience and operational efficiency. Digital ordering platforms, contactless payments, and AI-driven solutions for inventory management are becoming standard. This technological advancement allows businesses to streamline operations and offer personalized experiences, which is increasingly critical in staying competitive.
Additionally, there's a growing focus on health and wellness, with establishments expanding their menus to include plant-based options, vegan dishes, and other health-centric offerings. This caters to an increasing segment of consumers interested in maintaining a healthy lifestyle without compromising on taste.
The industry is also seeing an adaptation in service models, with a rise in ghost kitchens and delivery-only establishments. This trend is influenced by the continued popularity of home dining experiences even post-pandemic, as many consumers have grown accustomed to the convenience of food delivery services.
Looking ahead, the industry is expected to further innovate in sustainability and technology integration. Consumer preferences for unique, curated experiences will likely drive businesses to experiment with creative menu offerings and immersive dining environments. As economic conditions fluctuate, adaptability and a focus on delivering value will be crucial for maintaining growth and resilience in the food services sector.
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