The Economic Research Service (ERS) conducts research on foodservice outlets—facilities that serve meals and snacks for immediate consumption onsite (also referred to as food away from home (FAFH)). ERS examines the size of this growing market and its major market segments, including limited-service and full-service outlets.
A Large and Growing Market
Spending at foodservice outlets (FAFH) and food retailing outlets (also referred to as food at home (FAH)) has increased over time. Because nominal sales reflect both changes in prices and the amount of food purchased, the following chart presents inflation-adjusted estimates expressed in constant dollars, with 2025 as the base year. These estimates provide a cleaner picture of changes in food sales after accounting for food price inflation.
- In inflation-adjusted terms, total food sales at foodservice and food retailing outlets increased to $2.51 trillion in 2025 from $1.56 trillion in 1997, a 61.4 percent increase.
- Food sales at foodservice outlets grew more than food retailing outlets, increasing to $1.41 trillion in 2025 from $818 billion in 1997, a 73.0 percent increase.
- Among foodservice outlets, food sales at full-service establishments increased 66.0 percent, from an inflation-adjusted $294.2 billion in 1997 to $488.4 billion in 2025. Food sales at limited-service establishments increased 88.5 percent, from $273.8 billion in 1997 to $516.1 billion in 2025.
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The composition of food spending has also changed over time. Although expenditures on both FAH and FAFH increased, spending at foodservice outlets grew faster, resulting in a larger share of total food expenditures being spent away from home. The following chart shows the share of total food expenditures allocated to FAH and FAFH. Shares are calculated using nominal expenditures and are not adjusted for inflation.
- In 2025, 43.7 percent of total food expenditures were spent on FAH and 56.3 percent on FAFH.
- FAFH expenditures surpassed FAH expenditures in 2004 and have represented the larger share of total food expenditures every year since then.
- The FAFH share declined temporarily in 2020 because of the Coronavirus (COVID-19) pandemic but subsequently recovered as foodservice spending rebounded.
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Food-Away-From-Home Industry by Outlet Type
Commercial foodservice establishments account for the bulk of food-away-from-home (FAFH) spending. This category includes full-service restaurants, limited-service outlets, caterers, cafeterias, and other places that prepare, serve, and sell food to the general public for a profit. Some establishments are located within facilities that are not primarily engaged in dispensing meals and snacks, such as lodging places, recreational facilities, and retail stores. Schools and nursing homes are types of non-commercial foodservice establishments, often referred to as "institutional" foodservice facilities.
Full-service and limited-service restaurants, the two largest segments of the commercial foodservice market, accounted for 71.0 percent of all FAFH spending in 2025. At full-service establishments, customers typically order, are served while seated, and pay after eating. In contrast, limited-service outlets use convenience as a selling point; customers generally order and pay before eating and meals may be consumed on premises, taken out, or delivered to a specific location. Other FAFH establishments include hotels, drinking places, and non-commercial establishments.
In 2020, FAFH spending declined across full-service restaurants, limited-service restaurants, and other FAFH outlets. However, the FAFH market shares of full-service and limited-service restaurants diverged as spending at full-service restaurants fell more sharply. Full-service restaurants’ share declined from 34.1 percent in 2019 to 29.7 percent in 2020, while limited-service restaurants’ share increased from 34.1 percent in 2019 to 38.0 percent. The shift illustrates how changes in consumer purchasing patterns can alter the composition of the foodservice industry. Although total FAFH spending later recovered, limited-service restaurants retained a larger share of the market.
Since 2020, the gap between the market shares of full-service and limited-service restaurants has narrowed, although limited-service restaurants continued to account for a larger share of FAFH spending in 2025. In 2025, limited-service restaurants accounted for 36.5 percent of the FAFH spending, full-service restaurants accounted for 34.5 percent, and other FAFH establishments accounted for 29.0 percent.
As part of their growth strategy, limited-service restaurant companies have built more outlets closer to consumers' homes and workplaces, enhancing convenience for purchasing meals and snacks. Many of these companies have opened outlets in nontraditional locations, such as department stores. Besides convenience, a household's demand for FAFH is affected by its income and demographic characteristics, as seen in the ERS report:
The Demand for Food Away from Home: Full-Service or Fast Food?
Any shift in the market share between limited-service and full-service restaurants could influence the mix of foods and services offered by both types of establishments. For example, if trends favor full-service restaurants, the market could shift to more full-service restaurants offering a wider range of menu selections and dining amenities. In response, limited-service outlets might introduce comparable foods and services.
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Food-Away-From-Home Demand is Seasonal
Average daily inflation-adjusted food-away-from-home (FAFH) sales show recurring seasonal patterns across outlet types. From 2021 to 2025, sales at full-service and limited-service restaurants generally increased during the spring and summer months. Full-service restaurants also showed year-end increases in some years, consistent with holiday dining, although December was not always the annual peak. However, when the calendar flips to January, FAFH sales typically fall noticeably across outlet types. Sales at other FAFH outlets varied less over the year than sales at full-service and limited-service restaurants.
- In 2025, average daily inflation-adjusted sales at full-service restaurants were the lowest in January ($1,193 million) and peaked in May ($1,427 million).
- Average daily inflation-adjusted sales at limited-service restaurants were also lowest in January ($1,277 million) and peaked in May ($1,493 million) in 2025.
- In 2025, average daily inflation-adjusted sales at all other FAFH outlets were also the lowest in January ($672 million) and the highest month was in February ($723 million).
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Food Away From Home at the U.S. State Level
In nominal dollars, 2025 per capita food-away-from-home (FAFH) purchases reached a record high of $3,936. In inflation-adjusted dollars, however, per capita purchases remained below their 2019 peak. However, per capita FAFH sales were uneven across States. The map shows differences in per capita FAFH sales across States, relative to the U.S. average. FAFH sales were above the national average in a limited number of States, while many States across the interior West, Midwest, and parts of the South were below the U.S. average.
- In 2025, New Mexico had per capita FAFH sales at $3,588, which was the median value across all States.
- In 2025, Washington, DC ($9,287), Nevada ($6,008), and Hawaii ($5,572) had the highest per capita FAFH sales in the United States, each more than 15 percent higher than the fourth highest State (California) at $4,826. Possible factors for these outliers include tourism for all three areas, as well as interstate-commuting employees in Washington, DC. Tourists and commuters tend to spend more on FAFH, a relatively more costly form of food purchases, than on food at home (FAH) in the States they are visiting.
- In 2025, West Virginia had the lowest per capita FAFH purchases at $2,732, followed by Idaho ($2,885), Iowa ($2,948), Wisconsin ($3,053), and Arkansas ($3,167).
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Information used in this topic page is drawn from the Economic Research Service’s Food Expenditure Series data product. Interactive Chart: Food Expenditures provides interactive data visualizations for users.