The Q3 2023 Restaurant Trends report dives into full-service restaurants, guest reservation booking and dining behavior from Toast Tables, protein trends by state, and some good news regarding tipping.
Toast (NYSE: TOST), the all-in-one digital platform built for restaurants, today announced its Q3 2023 Restaurant Trends Report, providing insight into the overall state of the U.S. restaurant industry through an analysis of aggregated data from selected cohorts of restaurants and in select U.S. metropolitan areas on the Toast platform, which serves approximately 99,000 restaurant locations as of September 30, 2023.
This report looks into dinner service transaction data from full-service restaurants on the Toast platform in 17 metropolitan statistical areas (MSAs) in the U.S. in Q3 2023, reservation data and guest booking behavior from Toast Tables, protein trends in all 50 U.S. states, and some good news regarding tipping at restaurants. View the full report on the Toast Newsroom.
- Transactions: Out of the 17 MSAs Toast explored, 7 p.m. was the busiest for transactions in every area except for Miami, with most transactions (17%) split between 7 p.m. and 8 p.m.1
- Reservations: The most popular day of the week for reservations on the Toast Tables platform in Q3 2023 was Saturday, which had approximately 85% more reservations than the weekly average, followed by Friday, which had approximately 54% more reservations than the weekly average.2
- Reservations: The most popular hour for dinner reservations between 4 p.m. and 12 a.m. local time on the Toast Tables platform in Q3 2023 was 6:00 p.m. (37%), followed by 7:00 p.m. (26%), and 5:00 p.m. (22%). 3
- Booking Behavior: Looking at a 60-day timeline, over half (52%) of reservations Toast observed in Q3 2023 on the Toast Tables platform were booked less than a day ahead of the reserved time slot. Approximately 23% of those reservations made on the Toast Tables platform in Q3 2023 were made less than two hours in advance.4
- Tipping: Total tips for restaurants we observed on the Toast platform averaged 18.9% of total check amounts in Q3 2023, the same as Q2 2023. FSR tips, where tipped employees may make a lower hourly wage in the U.S. than other establishments, also remained steady at an average of 19.4% in Q3 2023, as well as quick-service restaurant (QSR) tips, which averaged 16.1%.5
For more additional insights and the full report, visit the Toast Newsroom.
1 Toast analyzed the number of transactions at full-service restaurants in 17 select MSAs on the Toast platform between 4 p.m. and 12 a.m. local time platform to determine the busiest hours transactions occurred in Q3 2023. Percentages may not equal 100% due to rounding.
2Toast analyzed the number of reservations each day of the week at full-service restaurants on the Toast Tables platform in Q3 2023 to determine which days had the highest number of reservations.
3 Toast analyzed the number of reservations between 4: 00 p.m. and 12:00 p.m. local time at full-service restaurants on the Toast Tables platform in Q3 2023 to determine which days had the highest number of reservations. Times are indicative of the restaurant location’s local time.
4Toast analyzed the time and number of reservation bookings at full-service restaurants relative to the booking slot on the Toast Tables platform to determine how far in advance guests were booking reservations in Q3 2023.
5 Data from restaurants on the Toast platform with tipping enabled and where a tip was added to the order via a card or digital payment. Cash tips are not included in the analysis.
About the Restaurant Trends Report:
The Restaurant Trends Report, powered by Toast, uncovers key trends across the restaurant industry through aggregated sales data from a selection of cohorts of restaurants on the Toast platform, which has approximately 99,000 locations as of September 30, 2023.
This information is provided for general informational purposes only, and publication does not constitute an endorsement. Toast does not warrant the accuracy or completeness of any information, text, graphics, links, or other items contained within this content. Individual results may vary. Toast does not guarantee you will achieve any specific results if you follow any advice herein. It may be advisable for you to consult with a professional such as a lawyer, accountant, or business advisor for advice specific to your situation. The Restaurant Trends Report is not indicative of the operational performance of Toast or its reported financial metrics.