Limited-Service Restaurants Revenue Benchmarks
The average limited-service restaurants business in the United States generates $1.6M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 159,039 limited-service restaurants businesses in the U.S., employing 4,490,315 workers with an average profit margin of 5.0%. The average employee in this industry earns $23K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Limited-Service Restaurants Business Actually Do?
Fast food and fast casual restaurants where customers order at a counter (or drive-thru) and there's minimal or no table service. Includes chains (McDonald's, Chipotle) and independents.
Who buys: Consumers looking for quick, convenient, affordable meals.
Average Revenue
$1.6M
per year
Profit Margin
5.0%
industry average
Revenue / Employee
$57K
per year
Total Businesses
159,039
in the US
Est. Owner Income
$80K
small business avg
Labor Cost
33.0%
of revenue
Avg Employee Wage
$23K
per year (BLS)
Market Saturation
48.0
firms per 100K people
How Much Do Limited-Service Restaurants Charge?
Fast food and fast-casual price per menu item with high check-average discipline; food cost target 28–32%.
| Service | Typical range |
|---|---|
Fast food check average | $8–14 per person |
Fast casual check average | $12–22 per person |
Food cost as % of revenue | 28–32% |
Labor as % of revenue | 25–32% |
Franchise royalty (if applicable) | 4–8% of gross |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete limited-service restaurants business plan
A 12-section data-backed business plan for a limited-service restaurants business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the limited-service restaurants industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Food & beverage costs | $34 | $548K | Ingredients, food, beverages, disposables — the raw cost of what's served. |
Wages & benefits | $33 | $530K | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $12 | $199K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $3 | $50K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $12 | $199K | Utilities, cleaning, licenses, credit-card processing, kitchen equipment depreciation, insurance. |
Net profit | $5 | $80K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
11.02%
openings/year
Closure Rate
8.81%
closings/year
Net Job Growth
+4.8%
annual
Businesses Closed
40,490
in 2023
Firm Count Trend
Should You Start a Limited-Service Restaurants Business?
Startup Cost
$100K – $500K
Break-Even
45 months
5-Year Survival Rate
42.0%
Related Industries
Frequently Asked Questions
- What does a limited-service restaurants business do?
- Fast food and fast casual restaurants where customers order at a counter (or drive-thru) and there's minimal or no table service. Includes chains (McDonald's, Chipotle) and independents. Consumers looking for quick, convenient, affordable meals.
- How much do limited-service restaurants charge?
- Fast food and fast-casual price per menu item with high check-average discipline; food cost target 28–32%. See the pricing table above for typical rates by service type.
- How much does the average limited-service restaurants make per year?
- The average limited-service restaurants business generates $1.6M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $80K per year at a 5.0% profit margin.
- How many limited-service restaurants businesses are there in the US?
- There are 159,039 limited-service restaurants businesses operating in the United States, employing a total of 4,490,315 workers.
- How much does it cost to start a limited-service restaurants business?
- Startup costs for a limited-service restaurants business typically range from $100K to $500K, with a 5-year survival rate of 42.0%.
- What is the average salary in the limited-service restaurants industry?
- The average employee in the limited-service restaurants industry earns $23K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The limited-service restaurants industry is actively growing — adding jobs at a net rate of 4.8% per year. New establishments are opening faster than existing ones close (11.0% entry vs 8.8% exit), indicating healthy demand.
Approximately 63% of limited-service restaurants businesses survive their first 5 years. This is above the national average (~50%), making it a relatively safe industry to enter. In 2023, 40,490 firms in this industry closed permanently.
Employment & Wages
The average employee in the limited-service restaurants industry earns $22,553/year. This is below the national average of ~$65K — typical for this sector. With 263,503 establishments employing 4,606,116 people, the typical business has about 17 employees.
Industry Trend (2000–2023)
The limited-service restaurants industry has grown 55% since 2000 (from 262,668 to 407,800 firms).
See full historical statistics →Compare Limited-Service Restaurants revenue with other industries: