US Restaurant Productivity Soared During COVID: The Fast Food Revolution?

A new study reveals that real labor productivity at US restaurants surged over 15% during the COVID-19 pandemic—an unprecedented jump after nearly 30 years of stagnation. Using mobile phone data tracking over 100,000 limited-service restaurants, researchers found this wasn't due to economies of scale, increased market power, or pandemic-related demand fluctuations. Instead, it strongly correlates with reduced customer dwell time, especially a rise in customers spending 10 minutes or less. The frequency of such takeout orders increased dramatically during COVID, even at fast-food restaurants, and remained elevated. The relationship between productivity and reduced dwell time almost entirely accounts for the overall productivity increase. This suggests the pandemic accelerated the adoption of fast food and takeout, significantly boosting restaurant efficiency.