Franchising in the restaurant industry began with A&W Root Beer in 1926, leading to the dominance of chains in the U.S. and globally. Chains like Howard Johnson's and McDonald's provided consistency, affordability, and convenience, influencing American food culture. The COVID-19 pandemic severely affected restaurants, causing closures and operational challenges. Despite the ongoing economic pressures and inflation in 2025, chain restaurants continue to be a crucial part of American culture and the economy, creating numerous job opportunities as they adapt to changing circumstances.
Since A&W Root Beer became the first American restaurant to franchise in 1926, the United States—and the rest of the world—has been dominated by chains. Iconic establishments like the now-defunct Howard Johnson's trained customers to look toward its distinctive orange roofs for consistency and comfort, while McDonald's revolutionized the industry with its focus on speed and affordability.
Even years after the pandemic, lingering supply issues and higher labor costs continue to plague restaurants across the country. Inflation and economic turbulence in 2025 have worsened the situation, as tariffs are predicted to continue driving up restaurants' operational costs.
Once-thriving chains like Wendy's and Denny's are facing closures, underscoring the volatility of the current climate. Despite these hurdles, chain restaurants remain vital to American dining culture, offering familiarity in an ever-changing world and bolstering the nation's economy.
According to the National Restaurant Association's June 2025 employment forecast, restaurants are expected to add nearly 500,000 seasonal jobs this summer.
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