The Tale the Numbers Tell: Limited Service Leads Job Growth | Modern Restaurant Management

As restaurants picked up momentum for the holiday season and new year, they reported the strongest monthly employment increase in six months, according to preliminary data from the Bureau of Labor Statistics (BLS) for September. Employment was nearly 144,000 jobs or about 1.2 percent above the February 2020 level, pushing overall workforce beyond pre-pandemic benchmarks.

Much of the recent and post-pandemic job growth has been concentrated in limited-service segments. As of August 2025, employment at snack and nonalcoholic beverage bars, a segment that includes coffee and donut shops, was 184,000 jobs (23 percent) above February 2020 levels. Similarly, QSRs and fast casuals were up by 107,000 jobs (2.4 percent). In contrast, the full-service segment continues to lag, remaining 212,000 jobs (3.7 percent) below its pre-pandemic employment numbers.

Pace Setting Rebound

Dr. Chad Moutray, Chief Economist at the National Restaurant Association, noted that despite progress, full-service employment has not fully recouped its initial losses at the beginning of the pandemic.

“We are fortunate to continue experiencing restaurant employment that exceeds pre-pandemic levels. At the same time, there are wide variances between the various segments, as consumers have shifted their preferences for how and where they eat out. Consumers are still prioritizing dining out, even as they scale back spending in other areas. This trend should support employment growth during the holiday season, with opportunities for seasonal positions alongside steady demand.”

In total, restaurants added approximately 68,000 jobs in the third quarter, an improvement from results during the first (-28,000) and second (+23,800) quarters of the year. The industry remains on pace to add more than 100,000 jobs during 2025, which would be the fifth straight year clearing that benchmark.

Signs of Resillence for 2026

“There remains a mix of uncertainty and headwinds in the economy as we approach year’s end, affecting both consumers and restaurant operators,” added Moutray. “Yet, the data continues to show signs of resilience.”

Restaurant staffing remains below pre-pandemic readings in 17 states and the District of Columbia. Massachusetts and West Virginia lead this group with about five percent fewer jobs. Other states well below include Maryland, Illinois, California, Vermont, and Michigan. In contrast, several mountain states have climbed beyond previous employment figures such as Idaho, Utah, South Dakota, and Nevada.

Moutray anticipates restaurant industry job growth to continue into 2026, particularly as the year progresses, despite challenges.

“While cost pressures remain elevated—though hopefully easing somewhat—and many consumers remain financially strained, restaurant operators will likely keep seeking efficiencies. Even so, we anticipate that demand for dining out will be strong enough to support overall employment growth in the sector throughout next year.”