Why is there So Much Growth in Restaurant Sales?

by admin

Restaurant Broker

A record 100,000 more locations will be established in 2016 than there were a decade ago while sales continue to climb. 

There will be more than 1 million restaurants and food service locations in the United States in 2016. 20%  or 1 in 5 of all restaurants in the United States are on the market.

The restaurant industry is a $782.7 Billion Dollar industry and equates to 4% of the U.S. Gross Domestic Product. That’s a larger output than 90% of the world’s economies.  In 2016 alone, sales are projected to grow by $37 billion dollars. To put that number in perspective, it is more than double Hollywood’s annual domestic box office sales.

There is no doubt.  Americans are in love with restaurants.  Employment in the industry will reach 15.1 million in the next decade creating 1.7 million new jobs by 2025.  An amazing half of all adults have worked in the restaurant industry at some point during their lives.

What are the societal factors factoring into restaurant brokerage growth?  Let’s take a look.


Baby Boomers are the largest generational group in history. They are also the most physically fit generation with many years of life ahead of them to finance.  That leads to lots of “Boomers” with lots of restaurants to sell.  They want the most money and they believe in hiring the best to manage their affairs.  They are not going to settle for a “general” business broker.  They want a specialist and that means they need Restaurant Brokers to sell their business; another societal reason Restaurant Brokerage is booming.


The restaurant industry continues to grow organically without consolidation.  That’s a very important point borne out by the recent National Industry Association statistics that tell us that 90% of all restaurants have fewer than 50 employees and more than seven in ten restaurants are single-unit operators, not multi-unit groups.

That means the restaurant industry remains a “Main Street” business. Restaurant owners want smart, local, and knowledgeable representation when they get ready to sell.  These stores aren’t being gobbled up by groups.  These stores sell the same way they are owned, one at a time and are sold one broker at a time.  That means continued growth for the restaurant brokerage industry.


The franchise system is a highly connected one and franchise brands simply prefer doing business with other franchise brands.  They believe that other franchises “get them” and understand the regulatory requirements of their FDD and the transfer process.  Those who are members of the International Franchise Association (IFA) can attest to the community of franchising that exists within the system.

Restaurants (Food and Hospitality) represents the largest segment of franchise brands in America.  The life cycle of each individual brand and its franchise count is always changing but above all, franchisors want growth, not closures.

For these important reasons and others that we will explore more fully in later postings, restaurant brokerage is booming in America today.

For more information on the growth of restaurant brokerage, download our free report at this link.


We Sell Restaurants is the industry leader in restaurants for sale and franchise resales.  We are franchising our brand nationwide and more information can be found online at wsrfranchise.com