More hit full service or limited service restaurants?

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For decades, Americans spent a larger share of their dining-out budgets at full-service establishments, from casual chains to fine dining, than at limited-service restaurants like fast-food or quick-service chains. That dominance flipped during the pandemic, when dining rooms closed and drive-thrus became the primary places to eat out. In 2020, limited-service restaurants captured about 38% of all food-away-from-home sales — the highest share ever seen, according to USDA data.

But as sit-down dining returned and fast-food prices surged, full-service restaurants regained their edge. In 2024, they accounted for 36.3% of total dining-out spending, slightly ahead of the 36.2% share for limited-service restaurants.

That trend seems to have continued. For much of last year, fast-food chains drew less foot traffic than full-service restaurants, per data from Placer.ai. Part of the shift reflects how sit-down restaurants have been actively targeting fast food’s core customers, with brands like Chili’s and Applebee’s doubling down on combo meals and bundled deals.