Total U.S. Restaurant Count Drops 2%

The decline from last year is due to a dip in independent restaurant units.

February 15, 2018

CHICAGO – The U.S. restaurant count reached 647,288 in fall of 2017, a 2% decrease in units from a year ago, based on a recent restaurant census conducted by The NPD Group. 

The primary source of the decline in U.S. restaurant units was a 3% drop in independent restaurant units compared to a stable restaurant chain count.

Restaurant chain counts grew to 301,183 units, a 982-unit increase, which kept the total chain count flat compared to fall 2016. The total number of independent restaurants declined to 346,105 units, a decrease of 10,952 units from last year. 

Quick service restaurants (QSR) declined by 1% to 353,121 units. Fast casual chains, a restaurant category under QSR, increased units by 4% to a total of 25,118. Full service restaurant units, which include casual dining, family dining and fine dining restaurants, stood at 294,167 units in fall 2017, a 2% decline, according to NPD’s fall 2017 census of all restaurants open as of September 30, 2017.   

Per NPD’s CREST, which daily tracks consumer use of commercial and non-commercial restaurants and foodservice outlets, total U.S. restaurant traffic ended 2017 flat and had it not been for a 1% increase in QSR visits, an increase primarily driven by chains, traffic would have declined.

“The U.S. restaurant count is reflective of what’s happening in the foodservice industry today overall,” says Bonnie Riggs, NPD’s restaurant industry analyst. “To expand or not expand units is a calculated decision on the part of restaurant operators. Chains simply have more monetary resources to grow units whereas independents do not.”   

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