How fast-food restaurants became more even more productive

Economists have found that fast-food restaurants are enjoying a newfound surge in productivity after ~30 years of stagnation, per NPR.

Between 1992 and 2019, productivity remained the same for restaurants while other sectors grew. Yet since the pandemic, fast-food restaurants have enjoyed ~15% more sales per employee — a figure that hasn’t dropped even as things have normalized.

Why? 

Customer dwell time. 

A new study used mobile phone data to track visits to 100k limited-service (fast-food) restaurants across the US between January 2019 and December 2022. It found a significant increase in customers who spent 10 minutes or less at the restaurant. 

• Placer.ai research also found that Taco Bell customers who visited for 10 minutes or less rose from 58.4% in 2019 to 62.9% in 2023, with similar increases at Wendy’s and Chick-fil-A. 

These customers are typically getting takeout or picking up delivery orders — something consumers adopted during the pandemic and never gave up. 

• These customers get in, get out, use fewer amenities, and make fewer messes, allowing restaurants to serve a larger volume of customers and spend less time cleaning. 
• Restaurants have also made changes to accommodate takeout customers, including mobile apps, takeout shelves, and prioritizing drive-thrus. 

What’s next? 

Robots, probably. As chains pivot to prioritize faster service, they’ve also invested in technology. Examples include kiosks for in-store orders, AI for drive-thrus, and automated machines that make salsa, guacamole, and fries. 

• Another example: Potbelly is perfecting a digital kitchen that will send orders to the backline based on how long they take to make, per Restaurant Business. 

Thus far, these efforts haven’t replaced human workers and may actually benefit them in the long run. Chad Syverson, one of the study’s authors, told NPR that without wage data he can’t be sure, but in many markets, “Wage and productivity tend to move together.” 

That said, other experts suggest workers may need to take action to ensure that happens. Unlike making guac, that hasn’t been automated.