Business Data & Benchmarks · United States

Food Service Contractor Revenue and Continuation Benchmark

Contracted food service run inside schools, hospitals, offices, stadiums and other client sites.

NAICS 722310, 2022 editionUnited States data by defaultSources and dates shown

Average Food Service Contractor Revenue per Year 2022 Economic Census

The 2022 Economic Census counts every food service contractor with paid employees and publishes their combined annual receipts. Dividing one by the other gives the average annual revenue per employer establishment below.

≈$1,690,000 /year

Average annual gross revenue per employer establishment

30,086

Employer establishments in the United States, 2022

as published $50.9 billion

Combined annual gross revenue of employer establishments, 2022

How this is calculated: about $50.9 billion in combined annual revenue divided by 30,086 employer establishments works out to $1,690,000. This is an average per establishment, and averages get pulled up by large, busy operations, so a typical business may sit below it.

Scope: Food Service Contractors (NAICS 722310). Contract food service for institutions and venues; restaurants open to the public are separate categories. Employer establishments only: owner-operated businesses with no paid employees are not in these figures.

The average here runs above the storefront restaurant averages because revenue arrives through long contracts serving captive populations rather than through walk-in trade. One signed agreement can carry a site for years, which puts contract renewal, rather than daily foot traffic, at the center of the year.

Revenue is concentrated in few clients, so losing one contract removes a large block of income at once, and pricing is usually fixed for the contract term while food costs are not.

Source US Census Bureau, 2022 Economic Census, Summary Statistics (ECNBASIC): ESTAB, RCPTOT and PAYANN by NAICS · Vintage 2022 Economic Census · Calculation BusinessNES · Accessed July 2026

Where these figures come from
Establishment counts and combined receipts are published figures from the official source named in each figure's source line. BusinessNES divides one by the other and rounds to the nearest $10,000; no other adjustment is made. The full chain from published figure to this page is described on the methodology page.

Data Source Notice

This product uses the Census Bureau Data API but is not endorsed or certified by the Census Bureau.

Figures above are from the 2022 Economic Census reference year, released by the Census Bureau in 2024 and 2025; markets have moved since.

Employer Establishments at Year Five Varies by cohort

Special food services, NAICS 7223, the 2018 starting count compared with the count of five-year-old establishments in 2023.

46.8%the year-five count as a share of the starting count

Five-year establishment continuation benchmarkLine chart of industry continuation: 78.7 percent at 1 year, 69.7 percent at 2 years, 54.9 percent at 3 years, 53.1 percent at 4 years, 46.8 percent at 5 years. 3,799 establishments first reported paid employment in 2018; BusinessNES calculation from Census BDS.100%75%50%25%0%2014-2018 cohort range: 37.8 to 58.8 percentStart: 100 percent, the starting count1 year: 78.7 percent of the starting count2 years: 69.7 percent of the starting count3 years: 54.9 percent of the starting count4 years: 53.1 percent of the starting count5 years: 46.8 percent of the starting count78.769.754.953.146.8Start1 year2 years3 years4 years5 years3,799 establishments first reported paid employment in 2018; BusinessNES calculation from Census BDS.
Five years on, this industry group counted about 47 establishments aged five for every 100 that first reported paid employment in 2018. Census compares counts by age rather than following the same businesses, so read it as a broad continuation indicator for the industry group, not as a tracked survival rate.

Results across the 2014 to 2018 cohorts ranged from 37.8 to 58.8 percent, so treat this as a directional benchmark rather than a precise forecast. This benchmark covers Special food services, NAICS 7223, as a whole. It is not a survival rate for food service contractors on their own: they are 30,086 of the 52,820 employer establishments in that group, about 57 percent of it. How this is measured

Payroll as a Share of Revenue Official data

Payroll covers the staff working at client sites, not the food cost, equipment or management fees written into the contract itself.

Cost lineShare of receipts
Annual payroll share of receipts, United States≈32%

Payroll share of receipts, Food Service Contractors, United States, 2022 Economic Census.

Approximately 32.0 percent of every revenue dollar in this category goes to annual payroll. As the census defines it, payroll includes wages, salaries, reported tips, commissions and bonuses; it excludes employer-paid benefits, employer payroll taxes, contractor payments and owner compensation. Treat it as one verified anchor, not a full labor cost breakdown. Contract feeding is labor heavy by design, since staff follow the client's service hours rather than demand, and the payroll line tends to follow the contract schedule rather than daily sales.

This is not total labor cost or profit margin.

How to read this number
Payroll here is the census annual payroll figure, PAYANN: it includes wages, salaries, reported tips, commissions and bonuses paid to employees, and it excludes employer-paid benefits, employer payroll taxes, contractor payments and proprietor compensation. BusinessNES divides it by the same category total receipts, RCPTOT, and rounds to a whole percent.

Position Within Its Comparison Group Computed from official data

Where this category sits among 8 food service categories in the same 2022 Economic Census release. Ranks and the group median are computed on exact values, before the rounding used above.

MeasureThis categoryGroup medianRank
Revenue per employer establishment$1,690,444$1,134,4671 of 8
Payroll share of receipts31.69%28.31%2 of 8
Employer establishments30,08635,498.55 of 8

Position among 8 food service categories, 2022 Economic Census, employer establishments only.

This category ranks 1st of 8 by average annual revenue per employer establishment. It ranks 5th of 8 by employer establishment count and 2nd of 8 by payroll share. Payroll equals 31.69 percent of receipts here, 3.37 percentage points above the group median of 28.31 percent. A higher or lower position is not a measure of profit or of business quality: the census reports receipts and payroll only.

Compared With Similar Business Types Computed from official data

The 4 categories closest to this one by average revenue inside the same comparison group.

Census categoryRevenue per establishmentPayroll shareEstablishments
Food Service Contractors (this page)$1,690,44431.69%30,086
Full-Service Restaurants$1,466,57034.42%254,201
Limited-Service Restaurants$1,323,03626.12%271,243
Cafeterias, Grill Buffets, and Buffets$1,238,15125.32%4,590
Caterers$1,030,78330.88%12,579

Nearest categories by average revenue, 2022 Economic Census, employer establishments only.

This category reports higher revenue per employer establishment than every category shown here: Full-Service Restaurants, Limited-Service Restaurants, Cafeterias, Grill Buffets, and Buffets and Caterers. It contains more employer establishments than two of the four categories shown. Every figure in this table comes from the same 2022 Economic Census release and the same employer establishment population, so the columns are directly comparable.

Sources and Methodology

Every figure on this page is bound to a published source, and each figure's own source line names that source precisely: the 2022 Economic Census for counts, receipts and payroll, and the Census Bureau's Business Dynamics Statistics for the industry continuation benchmark. Where a page shows a sector survival curve instead, that series comes from the Bureau of Labor Statistics.

BusinessNES performs the arithmetic on those published figures and nothing else. Receipts are divided by establishments, and payroll by receipts. The age-five establishment count is divided by the age-zero establishment count for the same four-digit industry group, then repeated across five age-zero cohorts to give a reference and a range. This category's share of its industry group, along with the ranks, medians and nearest peers in the comparison sections, comes from the same published tables. Every one of them is recomputed from the sealed source files at each release and blocks publication if it does not match. Results are rounded and marked approximate. The reference year is 2022 for revenue and payroll; treat every figure as a baseline, not today's market.

Category scope matters: these figures cover Food Service Contractors (NAICS 722310), employer establishments only. The scope note near the top of the page explains what that includes and excludes for this business type. For contract food service, note that restaurants open to the public and event caterers sit in separate Census categories.

Full method, sources and limits
The methodology page describes the full chain for every figure on this site: the published source, the sealed snapshot it was read from, the exact calculation if BusinessNES performed one, and the honest limits of scope and vintage. Read the methodology.

Spotted an error? Corrections are logged and published. Business data and benchmarks by BusinessNES.