This from the National Restaurant Association's 2016 report:
- 1 million+: Restaurant locations in the United States.
- 14.7 million: Restaurant industry employees.
- 1.6 million: New restaurant jobs created by the year 2027.
- 10%: Restaurant workforce as part of the overall U.S. workforce.
- 9 in 10: Restaurant managers who started at entry level.
- 8 in 10: Restaurant owners who started their industry careers in entry-level positions.
- 9 in 10: Restaurants with fewer than 50 employees.
- 1 in 3 Americans got their first job experience in a restaurant.
- Half of all adults have worked in the restaurant industry at some point during their lives.
This from the National Center for Policy Analysis (2013):
2.6%: the median profit margin at an independently owned fast-food restaurant, about a percentage point more at a corporately-owned location.
And this from a 2017 Harvard Business School study:
The evidence suggests that higher minimum wages increase overall exit rates for restaurants. However, lower quality restaurants, which are already closer to the margin of exit, are disproportionately impacted by increases to the minimum wage. Our point estimates suggest that a one dollar increase in the minimum wage leads to a 14 percent increase in the likelihood of exit for a 3.5-star restaurant (which is the median rating), but has no discernible impact for a 5-star restaurant (on a 1 to 5 star scale).
Bottom line: it’s tough in the restaurant industry. The elite establishments manage but your affordable local franchises really struggle. The reality on the ground is more complicated than the narrative of evil corporations suggest.
Reference:
Luca, Dara Lee, and Michael Luca. "Survival of the Fittest: The Impact of the Minimum Wage on Firm Exit." Harvard Business School Working Paper, No. 17-088, April 2017.