National Restaurant Association 1 Restaurant Business Conditions Survey
Key Findings
The National Restaurant Association Research Group conducted a survey of 4,200 restaurant operators
between July 14 and August 5, 2022. This report contains the key findings of the survey.
Soaring costs across all parts of the business are creating challenges for restaurant operators
• A strong majority of operators say their costs are higher now than they were before the pandemic:
➢ 88% of operators say their total food and beverages costs are higher than 2019
➢ 86% of operators say their total labor costs are higher than 2019
➢ 65% of operators say their total occupancy costs are higher than 2019
➢ 80% of operators say their total utility costs are higher than 2019
➢ 94% of operators say their other operating costs (supplies, G&A, etc.) are higher than 2019
• Restaurants took a number of actions in recent months as a result of higher costs:
➢ 91% of restaurants increased menu prices, while 65% changed the food and beverage items
that it offered on the menu
➢ 60% of restaurants reduced hours of operation on days that it is open, while 38% closed on
days that it would normally be open
➢ 44% of operators say they postponed plans for expansion
➢ 40% of operators say they stopped operating at full capacity
➢ 40% of restaurants cut staffing levels, while 29% postponed plans for new hiring
➢ 24% of operators say they incorporated more technology into their restaurant
➢ 16% of operators say they eliminated third-party delivery
Actions taken by restaurants in recent months as a result of higher costs
Action taken
All
restaurants
Fullservice
segment
Limited-service
segment
Increase menu prices
91%
92%
91%
Change menu items
65%
73%
57%
Reduce hours of operation on days that it is open
60%
63%
58%
Postpone plans for expansion
44%
39%
48%
Reduce the number of employees
40%
40%
41%
Not operate at full capacity
40%
42%
38%
Close on days that it would normally be open
38%
45%
32%
Postpone plans for new hiring
29%
26%
33%
Incorporate more technology
24%
23%
24%
Eliminate third-party delivery
16%
17%
15%
Notes: Limited-service includes quickservice, fast casual and coffee/snack concepts. Multiple responses were allowed.
Restaurant Business Conditions Survey
Key Findings – August 2022
National Restaurant Association 2 Restaurant Business Conditions Survey
1 in 6 restaurants are adding fees or surcharges to checks as a result of higher costs
• 16% of operators say their restaurant is currently adding fees or surcharges to customer checks as
a result of higher costs.
➢ This action is similarly common across segments: 17% of fullservice operators and 16% of
limited-service operators say they are currently adding fees or surcharges to customer
checks.
• Among restaurant operators that are currently adding fees or surcharges to customer checks, 75%
say they think it will likely be necessary to continue doing so for more than 1 year. 16% expect to
continue adding fees or surcharges for another 7 to 12 months, while only 9% expect this practice
to continue for less than 6 months.
Duration that restaurant operators expect the fees or surcharges will be necessary
Duration of fees or surcharges
All
restaurants
Limited-service
segment
Less than 3 months
1%
1%
4 to 6 months
8%
11%
7 to 12 months
16%
18%
More than 1 year
75%
70%
Base: Restaurant operators that are currently adding fees to surcharges to customer checks.
Note: Limited-service includes quickservice, fast casual and coffee/snack concepts.
Profitability is down from pre-pandemic levels
• Despite the wide variety of mitigating actions taken to address higher costs, the vast majority of
restaurants are less profitable now than they were before the pandemic.
➢ 85% of operators say their restaurant is less profitable now than it was in 2019 before the
pandemic. Only 6% of operators say their restaurant is more profitable, while 9% say their
profitability has remained about the same.
Restaurant operators expect business conditions to remain challenging
• Business conditions deteriorated in recent months, according to many restaurant operators. 46%
of operators say business conditions for their restaurant are worse now than they were 3 months
ago. Only 16% say business conditions improved during the last 3 months.
• Looking further down the road, most restaurant operators do not expect a return to normal
business conditions any time soon. 12% of operators think it will be 7-12 months before business
conditions return to normal for their restaurant, while 41% think it will be more than a year. An
additional 29% of operators say business conditions will never return to normal for their
restaurant.
National Restaurant Association 3 Restaurant Business Conditions Survey
2 in 3 restaurants are understaffed
• Although the industry added back many of the jobs lost during the pandemic, a majority of
restaurants remain understaffed. 65% of operators say their restaurant currently does not have
enough employees to support its existing customer demand.
➢ A majority of both fullservice operators (68%) and limited-service operators (63%) say their
restaurant does not have enough employees to meet customer demand.
• For most restaurants, staffing is significantly below necessary levels. Among restaurants that are
currently understaffed, 62% of operators say their restaurant is more than 10% below necessary
staffing levels. 20% of operators are currently more than 20% below necessary staffing levels.
➢ 19% of fullservice operators say their restaurant is currently more than 20% below
necessary staffing levels.
➢ 21% of limited-service operators say their restaurant is more than 20% below required
staffing levels.
Operators’ reporting of how understaffed their restaurant is
Restaurant segment
1% to 5%
below necessary
levels
6% to 10%
below necessary
levels
11% to 15%
below necessary
levels
16% to 20%
below necessary
levels
More than 20%
below necessary
levels
All Restaurants
11%
27%
22%
20%
20%
Fullservice segment
10%
28%
24%
20%
19%
Limited-service segment
12%
27%
21%
19%
21%
Base: Restaurants that currently do not have enough employees to support their existing customer demand.
Notes: Limited-service includes quickservice, fast casual and coffee/snack concepts. Rows may not sum precisely to 100% due to rounding.
Strong majority of restaurants are actively seeking to fill positions
• 81% of operators say their restaurant currently has job openings that are difficult to fill.
➢ A majority of both fullservice operators (86%) and limited-service operators (76%) say their
restaurant has job openings that are difficult to fill.
• 84% of restaurant operators say they will likely hire additional employees during the next 6 months
if there are qualified applicants available. 62% of operators say they are ‘very likely’ to add
employees during the next 6 months, while 22% are ‘somewhat likely.’
➢ A solid majority of both fullservice operators (86%) and limited-service operators (81%) say
they will likely hire additional employees during the next 6 months if there are qualified
applicants available.
National Restaurant Association 1 Restaurant Usage of Economic Injury Disaster Loans
Restaurant Usage of Economic Injury Disaster Loans
August 2022
Two-thirds of restaurants took on new loan debt during the pandemic
• 65% of restaurants took on new loan debt since the beginning of the pandemic in March 2020,
according to a National Restaurant Association survey of 4,200 restaurant operators fielded between
July 14 and August 5, 2022.
• Paycheck Protection Program (PPP) loans were the most common – taken on by 59% of operators. 48%
of operators took on an Economic Injury Disaster Loan (EIDL) issued by the U.S. Small Business
Administration or lending partner; 31% took on a private sector loan from a bank, credit card or other
entity.
• Independents (65%) were slightly more likely than franchisees (60%) to take on new loan debt since
the beginning of the pandemic. Independents (49%) were also more likely than franchisees (42%) to
take on an Economic Injury Disaster Loan.
Restaurant operators’ reporting of loan debt taken on since the beginning of the pandemic in March 2020
Restaurant segment
Took on any new loan
debt since March 2020
Paycheck Protection
Program (PPP) loan
Private Sector
loan
Economic Injury
Disaster Loan (EIDL)
All Restaurants
65%
59%
31%
48%
Fullservice segment
64%
59%
31%
47%
Limited-service segment
67%
58%
31%
48%
Independents
65%
59%
32%
49%
Franchisees
60%
54%
28%
42%
Note: Limited-service includes quickservice, fast casual and coffee/snack concepts.
Source: National Restaurant Association, national survey of 4,200 restaurant operators fielded between July 14 and August 5, 2022
Nearly 4 in 10 restaurants with EIDL debt owe more than $200,000
• Only 9% of restaurant operators with EIDL debt say they have completely paid off their loan.
• 10% of operators with EIDL debt owe between $1 and $49,999, while 44% owe between $50,000 and
$199,999.
• 31% of operators with EIDL debt owe between $200,000 and $999,999, while 6% owe at least $1
million.
• Franchisees (51%) are more likely than independents (37%) to owe more than $200,000 in EIDL debt.
Restaurant operators’ reporting of the current amount owed on their EIDL loan
Restaurant segment
$0
$1 to
$49,999
$50,000 to
$199,999
$200,000 to
$999,999
$1 million
or more
All Restaurants
9%
10%
44%
31%
6%
Fullservice segment
7%
7%
44%
33%
8%
Limited-service segment
11%
12%
44%
28%
5%
Independents
9%
9%
45%
31%
6%
Franchisees
6%
4%
40%
39%
12%
Notes: Limited-service includes quickservice, fast casual and coffee/snack concepts. Rows may not sum precisely to 100% due to rounding.
Source: National Restaurant Association, national survey of 4,200 restaurant operators fielded between July 14 and August 5, 2022
National Restaurant Association 2 Restaurant Usage of Economic Injury Disaster Loans
1 in 3 restaurants with EIDL debt have made an initial payment on their note
• 33% of restaurant operators with EIDL debt say they have made an initial payment on their loan.
• Independents (34%) are more likely than franchisees (23%) to say they have made an initial payment
on their loan.
Less than 1 in 4 restaurant operators with EIDL debt say they will be able to make scheduled principal and
interest payments
• Among restaurant operators who have not made an initial payment on their loan, only 23% say they
will be able to make scheduled principal and interest payments once the payback deferment period is
finished.
• 46% say they will be able to make principal payments, but not the 30 months of accrued interest.
• 31% say they will not be able make principal or interest payments.
Restaurant operators’ reporting of their current ability to make repayments on their EIDL debt once the
payback deferment period is finished
Restaurant segment
They will be able to make
principal and interest
payments as scheduled
They will be able to make
principal payments, but not the 30
months of accrued interest
They will not be able make
principal or interest
payments
All Restaurants
23%
46%
31%
Fullservice segment
24%
43%
33%
Limited-service segment
23%
49%
28%
Independents
23%
45%
32%
Franchisees
26%
45%
29%
Base: Restaurant operators who have not made an initial payment on their loan.
Notes: Limited-service includes quickservice, fast casual and coffee/snack concepts.
Source: National Restaurant Association, national survey of 4,200 restaurant operators fielded between July 14 and August 5, 2022