The Q4 2023 Restaurant Trends report looks into
catering activity around the holidays, large events, cold-weather
food and alcohol preferences, and weekly tipping trends.
Toast (NYSE: TOST), the all-in-one digital platform built for
restaurants, today announced its Q4 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 106,000 restaurant
locations as of December 31, 2023. Read more details about our
methodology below.
This report looks into catering and large event transactions on
the Toast platform, trends in 27 food types and nine alcohol
categories, weekly tipping trends, and tips in all 50 U.S. States,
from Q4 2023. View the full report on the Toast Newsroom.
Food & Alcohol Trends
To better understand food and alcohol trends in Q4 2023, Toast
analyzed order counts for 27 restaurant dishes and nine alcohol
types. Toast then compared the Q4 2023 average of these categories
to the average for the remaining quarters in 2023 to determine
which foods and drinks guests ordered more frequently as the year
ended.1
Spoiler: It isn’t salads or hard seltzers.
Cold weather associated with Q4 seemed to drive many consumer
food trends — guests ordered warm comfort foods more than the
average of Q1 through Q3. Soups/stews saw the largest increase,
with +25% more orders than the average for the first three
quarters of the year, followed by ramen/noodles (+13%), curry
(+12%), dumplings (+8%), steak (+5%), and rice (+5%).1
On the other end of the spectrum, salads saw the most
significant decrease in orders, compared to the average for the
first three quarters of the year, followed by bowls, nachos, hot
dogs (-7%), and tacos (-6%). Interestingly, data suggest that some
food categories, like desserts and enchiladas, had no significant
change in orders in Q4 compared to the average for Q1 through
Q3.
So what did restaurant guests drink with their meals and order
at bars in 2023? Whiskey orders were up +21% in Q4 compared
to the average of Q1 through Q3, followed by wine (+13%), vodka
(+12%), rum (+11%), gin (+10%), tequila (+9%), and beer (+5%).2
Overall, restaurant and bar guests drank approximately +11%
more alcohol in Q4 2023 compared to the average of Q1 through
Q3.
’Tis the Season for Catering
With so many holidays and end-of-year parties jammed into Q4,
it’s no surprise that it’s a busy time for catering and large
parties.
Same-store catering transactions increased by +71% in Q4
2023 compared to Q4 2022, and approximately 30% of that
increase came through Catering Online Ordering, which launched
in Q3 2023. Restaurants serving bakery items, coffees, teas, and
desserts had the most catering transactions in Q4 2023, which
accounted for approximately 32% of all transactions.3
On average, catering order ticket sizes in Q4 2023 were
$160. Tips on catering orders were much lower than other
service channels. However, those who did choose to tip on a card or
digital payment typically tipped 13% — up +1.3% from Q4
2022. Guests really showed their holiday spirit on New Year’s Eve,
where tips on catering orders averaged 23.2%.
The State of Tipping in America
Overall, tips remained generally flat in Q4 2023 compared to Q3
2023, which is good news for restaurant employees. Total tips
averaged 18.9% in Q4 2023, the same as Q3 2023. Full-service
restaurant tips also remained flat at 19.4%. Quick-service
restaurant tips dipped just .1% from Q3 2023 to 16%. 4
View the full report on the Toast Newsroom.
Methodology:
1Methodology: Toast analyzed transactions on the Toast platform
from January 1, 2023, to December 31, 2023, to determine the
popularity of dishes labeled “salads, bowls, nachos, tacos,
burgers, chicken tenders, roast chicken, fries, quesadillas,
sandwiches, sushi, BBQ, burritos, desserts, enchiladas, pizza,
cheese, omelette, pasta, wings, rice, steaks, dumplings, curry,
ramen/noodles, and soups/stews.” Toast then compared the Q4 2023
average volume with the average volume for the other quarters in
2023.
2Methodology: Toast analyzed transactions on the Toast platform
from January 1, 2023, to December 31, 2023, to determine the
popularity of beverages containing “hard seltzer, hard cider, beer,
tequila, gin, rum, vodka, wine, and whiskey.” Toast then compared
the Q4 2023 average volume with the average volume for the other
quarters in 2023.
3Methodology: Toast analyzed catering transactions from a cohort
of restaurants on the Toast Catering & Events platform in Q4
2022 and Q4 2023. Toast used a cohort of same-store customers on
the platform since Q3 2022.
4Methodology: Data from applicable restaurants on the Toast
platform where a tip was added to the order via a card or digital
payment from October 1, 2023, to December 31, 2023. 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 106,000 locations as of December 31, 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.
About Toast
Toast [NYSE: TOST] is a cloud-based, all-in-one digital
technology platform purpose-built for the entire restaurant
community. Toast provides a comprehensive platform of software as a
service (SaaS) products and financial technology solutions that
give restaurants everything they need to run their business across
point of sale, payments, operations, digital ordering and delivery,
marketing and loyalty, and team management. We serve as the
restaurant operating system, connecting front of house and back of
house operations across service models including dine-in, takeout,
delivery, catering, and retail. Toast helps restaurants streamline
operations, increase revenue, and deliver amazing guest
experiences. For more information, visit www.toasttab.com.
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