To see an average wait time, tap on a restaurant's business page.
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Wait times are calculated based on "anonymized historical data" pulled from Google users who have opted into Google's (somewhat creepy) smartphone location history program.
To see wait times for almost a million sit-down restaurants around the world that allow walk-ins, just search for the restaurant on Google, open the business listing, and scroll down to the Popular Times section. The feature will be deployed in Google Maps soon, too. When they're ready to launch on Google Maps and Android, Google also promises to expand the function to include grocery-store listings. Similar to the busy times, a bar graph will show you the busiest times.
This particular feature has been a nice addition for Google Search, and with the inclusion of restaurants should go a long way to helping visitors.