New Openings
14 Types of Restaurants to Consider Opening
October 5, 2023
An overview of different restaurant concepts and what to know about them.
Among the countless decisions facing you in the lead-up to a new restaurant opening, perhaps none is more important than identifying precisely what kind of concept you want to build. To decide, you’ll need to get an overall sense of the market for each category, including ideas for diversifying revenue streams and the best tech for each concept type.
The upfront costs, revenue structures, number of employees, operating hours, and locations vastly differ depending on what type of restaurant you choose to open. Having an understanding of these variables before deciding what to pursue is essential. So, let’s get started.
Read more: How to Write a Restaurant Business Plan [Free Template]
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14 Restaurant Types
Below are the 14 most popular types of restaurants. Read on for a look at the current landscape, how many businesses exist in each category, real examples of current concepts, and recommended resources to include in your due diligence.
Bakeries
There are approximately 9,000 bakery cafes in the United States in 2023. Bakeries are typically counter service businesses with opening hours between 7–8am and closing hours between 3–4pm.
Merchandise stores include practical items for home bakers like branded spatulas and rolling pins as well as more traditional merch items like totes, mugs, t-shirts, and even baby onesies. Many bakeries find success with offering take and bake pastries, packaged treats, and baking kits.
Baking and decorating classes function as another revenue stream for bakeries, too. These types of events are great money makers during off hours in the evening or on the weekend.
Because space can be limited — especially seating — it’s important for bakeries to invest in an online ordering system to streamline orders and maximize how many customers can be served. Similarly, bakeries can meet the demand for office catering (particularly focusing on supplying pastries and coffee for morning meetings) by setting up a way to accept pre-orders.
Technology Needed: Website, Online Ordering, Pre-Ordering & Catering, Gift Cards, Merchandise, Ticketed Events
Examples: Goddess and the Baker, Fox in the Snow, Back Door Donuts
Helpful Resources:
Bars
As of 2023, the United States has about 70,000 bars. Newly opening bars should pay close attention to their decor, as this can be a key driver of private events bookings. When bars have the right mix of space and a unique aesthetic, they become hotspots for everything from the regular weekly sports crowd to office parties. New York City’s Death & Co does a great job of showcasing their private event spaces on their website, with inquiry forms clearly labeled and listed front and center.
Selling custom drinkware, mixing glasses, and bar accessories on a merchandise store assists in restaurant branding, not to mention also helps to drive sales 24/7. Ticketed events like cocktail classes hosted by your bar team can be an additional revenue stream.
Technology Needed: Website, Dine-in Order & Pay, Events Management, Ticketed Events, Gift Cards, Merchandise
Examples: Broken Shaker, Death & Co, The Happiest Hour
Helpful Resources:
Breweries
Currently, there are about 10,000 breweries across the country. They’ve become popular spots for parties and even weddings, so potential owners should factor private events into their business plans.
A well-designed website is another must for breweries, especially when it comes to differentiating themselves in a crowded market. Your digital presence is an opportunity to showcase everything from your origin story to your beer library to your merchandise store.
Technology Needed: Website, Dine-in Order & Pay, Events Management, Ticketed Events, Gift Cards, Merchandise
Examples: Sycamore Brewing, Bearded Owl Brewing, Crooked Hammock Brewery
Helpful Resources:
Coffee Shops
If it seems like new coffee shops have been popping up on nearly every street you pass by, that’s because this category has seen about a 3% growth each year since 2018. As of 2023, there are about 72,000 coffee shops in the United States.
Like bakeries, coffee shops typically operate with early opening hours and early closing hours. You might consider opening as early as 6am to cater to early risers and morning commuters. Most businesses close between 3pm and 5pm, with some staying open until 7pm or 8pm.
Many coffee shops sell items beyond the bean like baked goods, bagels, and breakfast sandwiches. If that’s what you’re planning, then offering catering is a great way to diversify your revenue streams and expand brand awareness to build your customer base.
Technology Needed: Website, Online Ordering, Pre-Ordering & Catering, Gift Cards, Merchandise
Examples: Café Patachou, Lula Cafe, Founders Coffee
Helpful Resources:
Fast Casual Restaurants
Fast casual is a category that blends the speed of fast food with the quality of casual dining. Typically, these are counter service concepts that offer meals ranging between the $8 and $15 price points. They started gaining popularity in the late 1990s.
An offshoot of fast casual known as “fine casual” (a term coined by restaurateur Danny Meyer) floated into public conversation around 2015 and is still growing as a category.
Fast casual dining is characterized by tasteful yet understated design aesthetics, affordable prices, and comfortable spaces: somewhere a hungry college kid in a rush could eat next to a family sprawled out for family dinner. A market research report from 2023 calls out the rise in popularity of chef-driven fast casual restaurant franchises as a trend that’s expected to have a positive impact on the industry. It also points to three focus areas that newcomers to the space need to lean into in order to stay competitive: positioning, technology, and appropriate pricing.
Technology Needed: Website, Online Ordering, Pre-Ordering & Catering, Dine-in Order & Pay, Gift Cards, Merchandise, Ticketed Events
Examples: Souvla, Cutlets, PLNT Burger
Helpful Resources:
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Fine Dining Restaurants
Fine dining is the only restaurant type that did not see growth between 2022 and 2023. It’s also the smallest category — fine dining concepts make up the least amount of share across all restaurants in the United States with just 4,500 restaurants.
These are more upscale places that rely primarily on brand reputation, so make sure you have a strong website and social media presence. Starting with your website, you can set the tone for your concept and share your commitment, values, and mission. Events management software is also a must as private dining is a big revenue driver for fine dining restaurants.
These are the places where it really matters that you find the right chef, that you curate the wine list, and that you have a super tight staff.
Technology Needed: Website, Events Management, Reservations
Examples: Atelier Crenn, The Bazaar, Eleven Madison Park
Helpful Resources:
Food Trucks
The number of food trucks have grown almost 10% per year on average over the past five years. There's a big opportunity to join the 36,000 food trucks on the road, and showing up technologically well-equipped can give you an edge.
Because food trucks have low overhead costs, there’s more money that can be invested in good tech. A beautiful website with strong SEO is a must. When you’re constantly changing your location, updating your website with details on where to find you is imperative. Online ordering software can help cut down on lines and crowding in front of your truck. And for your biggest fans? Merchandise turns them into walking billboards for your brand. It’s a revenue driver and a form of word-of-mouth marketing all in one.
Technology Needed: Website, Online Ordering, Pre-Ordering & Catering, Gift Cards, Merchandise
Examples: Disco Cheetah, Carlitos Tacos, Roaming Rooster
Helpful Resources:
Food Halls
Food halls are the smallest segment of restaurant types, with only about 350 in the US. Despite the limited number, they’ve seen strong growth over the past few years. CoStar News reports that the concept is maturing and changing from being mostly centralized in big cities to expanding into college campuses and suburban markets.
If you’re looking to get into this concept type, The State of Food Halls 2023 shares the components to keep in mind that they deem vital for a food hall to thrive. According to the team at Colicchio Consulting, one of the top food hall consultants in the country, “there are six critical principles for food hall success: site selection, operational model, design, programming/space activation, technology, and vendor curation.”
Technology Needed: Website, Online Ordering, Dine-in Order & Pay, Ticketed Events, Gift Cards, Merchandise, Events Management
Examples: Milepost Zero, Kuhio Avenue Food Hall, Finn Hall
Helpful Resources:
Ghost Kitchens
Ghost kitchens — sometimes referred to as delivery-only concepts or virtual kitchens — are restaurants that rely on food delivery only with no in person dining. This type of restaurant can be appealing because it requires less space and fewer employees. Plus, with fewer upfront costs and lower overhead, the barrier to entry is lowered.
With 8,300 ghost kitchens in the United States, this restaurant type has continued to grow, especially during the pandemic. The trend has caught the attention of many in the industry, including US Foods who launched a ghost kitchen pilot program.
Because there’s no physical location, a strong web presence is all the more essential and online ordering is a non-negotiable. Many ghost kitchens have chosen to forgo third-party marketplaces due to high competition on the platforms and up to 30% of proceeds taken. Instead, they’re turning to direct online ordering options.
Investing in digital marketing efforts to raise awareness of your concept is the best way to grow your customer base and succeed with direct ordering. That can look like a mix of a strong social media strategy, an email marketing plan, and high quality food photography.
Technology Needed: Website, Online Ordering, Pre-Order & Catering, Automated Email Marketing
Examples: Baked Wings, Rogue Kitchens, The Calimex Cafe
Helpful Resources:
Hospitality Groups
Hospitality groups are businesses that own multiple restaurant concepts. Although each concept has a distinct brand, they sit under the same umbrella and there are many things that are worth standardizing across the group for consistency and easier management. For example, it’s beneficial for hospitality groups to build the websites for all of their concepts through the same company. This centralizes the website management through one tool and ensures that staff know just one system.
Frasca Hospitality Group gives their staff access to the backend of their websites and each team lead is responsible for managing their respective portion of the website: General Managers handle restaurant communications and programming, Executive Chefs update menus, Sommeliers keep the wine list up to date, etc. With roles and responsibilities distributed across the group, the website workload is diversified and more timely updates occur.
Similarly to websites, there are benefits of a standardized system for online ordering, gift cards, reservations, and more for hospitality groups.
Technology Needed: Website, ADA & Digital Accessibility, Online Ordering, Dine-in Order & Pay, Pre-Order & Catering, Merchandise, Ticketed Events, Gift Cards, Events Management, Reservations, Waitlist, Loyalty Programs
Examples: COJE Management Group, Gastamo Group, Three Oaks Hospitality
Helpful Resources:
Hotel Restaurants
Hotel restaurants are beneficial for many reasons. First, you’re partnering with or leasing your space from an established operation (a hotel), which can minimize cost liability. You’ll get a lot of support from the hotel as food & beverage programs are very important to them, and they want to help you out to make sure you’re successful.
Second, you have a built-in customer base, thanks to hotel guests. People staying on site can eat in your restaurant's dining room (along with locals) or utilize takeout to enjoy food in their rooms. To cater to takeout and pickup orders, you’ll want to set up an online ordering system. Lastly, being connected to a hotel comes with great potential for cross promotion with tourism boards, chambers of commerce, and city guides.
Technology Needed: Website, Online Ordering, Dine-in Order & Pay, Merchandise, Gift Cards, Events Management, Reservations, Waitlist
Examples: Evening Bar, Hawthorn, Florie’s
Helpful Resources:
Multi-Unit Restaurants
Instead of opening a completely new restaurant, you might want to open a new location. Multi-units are a good choice for restaurants ready to scale, but before you take the plunge, here are a few things to keep in mind.
The biggest decision for multi-unit restaurants is picking the right location. Next is making sure the guest experience is consistent across multiple properties, from the food itself to the customer service to the ambiance. A well-documented opening process can make your expansion easier.
Technology Needed: Website, ADA & Digital Accessibility, Online Ordering, Dine-in Order & Pay, Pre-Order & Catering, Merchandise, Ticketed Events, Gift Cards, Events Management, Reservations, Waitlist, Loyalty Programs
Examples: O-Ku Sushi, Black Seed Bagels, Back Yard Burgers
Helpful Resources:
Neighborhood Spots
Neighborhood spots are those restaurants that the residents living on nearby streets come to over and over again. They’re establishments that are deeply invested in their community. The servers know regulars by name, and the owners are frequently seen coming table to table.
This type of relationship building takes time to build, but there are a few specific pieces of technology that can help expedite the process. First is a reservation system that lets you own guest data so you can start keeping track of (and getting to know the preferences of) the people who come in and order takeout. This helps provide a more customized hospitality experience.
Next is a brand-forward website with built-in SEO that makes online discovery easy. Then, is a direct online ordering system that benefits both the restaurant and customer with no third-party fees. And lastly, is a dashboard that displays all diner data from number of visits to ordering preferences to special dates to keep in mind.
Technology Needed: Website, Online Ordering, Pre-Order & Catering, Dine-in Order & Pay, Merchandise, Gift Cards, Events Management, Reservations, Waitlist
Examples: Milo, Miss Lily’s, Five Corners
Helpful Resources:
Pizzerias
This is one of the most popular types of concepts to open, with 78,000 pizzerias existing in the United States. The service styles range from quick service/counter service to full service with most restaurants offering takeout and delivery as well.
Online ordering for takeout and delivery has almost completely replaced the traditional method of calling in an order. Still to come is a move towards pre-ordering, which Pizza Today predicts will be the next big trend in the industry.
Pizzerias have found great success with adding gift cards and merchandise (check out Fini Pizza’s merch selection) to diversify revenue streams, too.
Technology Needed: Website, Pre-Order & Catering, Online Ordering, Gift Cards, Merchandise
Examples: Posto, Vittoria Pizzeria, Pasquale Jones
Helpful Resources:
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