The Lipstick Effect Made Restaurants America’s Job Growth Engine

Retail stumbled, and tech wobbled, but somehow, your local coffee shop kept hiring. Restaurants became America’s unlikely labor market hero in 2025, adding ~108K jobs as consumers refused to give up their small treats. With budgets tightened everywhere else, this growth came during the weakest non-recession hiring year in two decades — though some players won more than others.

• Restaurant payrolls outgrew total nonfarm payrolls by 10x — thanks to snack, sit-down, and fast-food venues growing 3.6%, 1%, and 0.4%, respectively.
• Insiders call it the “lipstick effect” — where consumers delay big purchases, but still treat themselves to affordable indulgences like a meal or coffee out.

Survival of the tastiest: While the overall sector performed, brands that leaned into value captured the most growth. As a proxy for demand, BrinkerEAT

grew hourly staff by 23%, DardenDRI

added 3.8%, and Dutch BrosBROS

expanded headcount by 33% through bundled deals and reduced portions. In a year of stretched consumers, the only working upgrade was the downgrade.