Research
April 08, 2026
Restaurant and Lodging Business Applications Remain Highly Elevated
In March, 26,786 business applications were filed for new accommodation and foodservices establishments, according to seasonally adjusted data from the U.S. Census Bureau. These figures are part of the Business Formation Statistics (BFS) series, which tracks applications for an Employer Identification Number (EIN). Importantly, the BFS captures business applications only. It does not reflect actual business openings or closings.
Business applications in accommodation and foodservices eased from 27,820 in February. However, this data can be highly volatile on a month-to-month basis. Over the past eight months, applications in the sector have averaged roughly 26,500, closely aligned with the March reading.
Despite recent moderation, start-up activity in accommodation and foodservices remains well above its pre-pandemic trend. As shown in the attached chart, business applications in the sector followed a steady upward trajectory from January 2010 through February 2020. Extending that pre-pandemic trend forward suggests there would have been nearly 17,500 applications in March; in reality, filings were more than 53% higher than that benchmark.
Business applications surged in the post-pandemic period, and while growth has since stabilized, the level of activity remains substantially elevated relative to historical norms. This pattern underscores a broader shift toward greater entrepreneurial activity across the economy, including within restaurants, foodservice operations, and accommodation providers.
The Business Formation Statistics series dates to July 2004. Over its history, accommodation and foodservices applications have averaged 5.41% of all business applications. In March, the sector accounted for 5.44% of the total. While this is well below the all-time high of 6.25% reached in May 2021, the current share is not far from the historical average. This suggests that the sizable post-pandemic increase in accommodation and foodservices applications has been accompanied by a comparable surge in total business formation overall.
Indeed, total business applications have soared since the onset of the pandemic. There were 491,941 total business applications in March, with filings trending lower since reaching 537,266 in November 2025. In the immediate aftermath of the pandemic, Americans leaned heavily into entrepreneurship, with a record 546,719 business applications filed in July 2020. Notably, the November 2025 reading was not far from that historic high.
Overall application activity remains highly elevated and well above the pre-pandemic pace, mirroring trends seen in accommodation and foodservices. If the pre-pandemic trend were extended forward, there would be nearly 349,500 total business applications today, or 40.8% fewer than the actual level observed.
Business applications in accommodation and foodservices eased from 27,820 in February. However, this data can be highly volatile on a month-to-month basis. Over the past eight months, applications in the sector have averaged roughly 26,500, closely aligned with the March reading.
Despite recent moderation, start-up activity in accommodation and foodservices remains well above its pre-pandemic trend. As shown in the attached chart, business applications in the sector followed a steady upward trajectory from January 2010 through February 2020. Extending that pre-pandemic trend forward suggests there would have been nearly 17,500 applications in March; in reality, filings were more than 53% higher than that benchmark.
Business applications surged in the post-pandemic period, and while growth has since stabilized, the level of activity remains substantially elevated relative to historical norms. This pattern underscores a broader shift toward greater entrepreneurial activity across the economy, including within restaurants, foodservice operations, and accommodation providers.
The Business Formation Statistics series dates to July 2004. Over its history, accommodation and foodservices applications have averaged 5.41% of all business applications. In March, the sector accounted for 5.44% of the total. While this is well below the all-time high of 6.25% reached in May 2021, the current share is not far from the historical average. This suggests that the sizable post-pandemic increase in accommodation and foodservices applications has been accompanied by a comparable surge in total business formation overall.
Indeed, total business applications have soared since the onset of the pandemic. There were 491,941 total business applications in March, with filings trending lower since reaching 537,266 in November 2025. In the immediate aftermath of the pandemic, Americans leaned heavily into entrepreneurship, with a record 546,719 business applications filed in July 2020. Notably, the November 2025 reading was not far from that historic high.
Overall application activity remains highly elevated and well above the pre-pandemic pace, mirroring trends seen in accommodation and foodservices. If the pre-pandemic trend were extended forward, there would be nearly 349,500 total business applications today, or 40.8% fewer than the actual level observed.