Quick-Service Restaurants Market Size, Share & COVID-19 Impact Analysis, By Service Type (Dine-In, Takeaway, and Delivery) and Regional Forecast, 2023-2030

The global quick-service restaurants market size was valued at USD 763.42 billion in 2022 and is projected to grow from USD 846.75 billion in 2023 to USD 1,777.97 billion by 2030, exhibiting a CAGR of 11.18% during the forecast period.

A quick-service restaurant is a restaurant that offers food items, which require minimal preparation time and are delivered in a short time. These restaurants have a wide variety regarding the type of service they offer.

The food delivery business has seen rapid growth recently with the rise in food delivery websites and applications. Most players in the food service industry including traditional restaurants, Quick-Service Restaurants (QSRs), and others have started opting for digital food ordering and delivery services. Additionally, as QSRs have an edge in competition by providing faster service than traditional restaurants, the new and advanced delivery systems offering quicker service at these restaurants and faster food deliveries allow consumers to have food at home with less waiting time. The tracking process is transparent and notifies eateries about every update on their consumer's order right from placement to delivery. For instance, in March 2022, Zomato, one of India's leading food delivery platforms, announced that it was developing and launching a 10-minute delivery service. As per the company’s founder Deepinder Goyal, this service would be curated for higher-demand neighborhoods.

COVID-19 IMPACT

Global Supply Chain Disruptions Impacted Market Development During COVID-19 Pandemic

The spread of the COVID-19 outbreak drastically changed the global markets and affected different industries including the quick-service restaurant sector. The strict restrictions imposed on dine-in food services during this period led to the partial or complete closure of many restaurant outlets. Several consumers were hesitant to eat in quick-service restaurants as they feared contracting the deadly virus. Therefore, the visits to restaurants and spending on dine-ins decreased drastically during this period. In the U.S., the COVID-19 wave hit hard between June and October 2020. Almost all dining-out facilities were shut down due to the spread of disease. Hence, the food industry was also negatively impacted. According to the U.S. Department of Agriculture (USDA) data, U.S. consumers spent 8% less on food in 2020 as compared to 2019. This was mainly due to national lockdowns declared in the country to curb the spread of the virus. Although online ordering was allowed and a few QSRs were operating to offer takeaways, they did not record their average sales and saw a dip in consumer visits. After the pandemic, quick-service restaurant operators seized the opportunity to adjust to the new normal by considering renovating the restaurant's design, reinventing the menu, and digitizing customer experience. Use of advanced analytics and the Internet of Things (IoT) can improve restaurants' ability to accurately forecast daily consumer demand and changes in their eating habits. For instance, in August 2022, Dominos announced plans to implement IoT for its kiosk screens to offer better consumer experience through a methodical approach.

LATEST TRENDS

Rising Trend of Vegan Food Consumption to Support Market Growth

Veganism is a new food trend that is growing strongly globally. Vegans don't eat animal-based products, such as dairy products, eggs, or other animal-derived ingredients. For instance, as per Our World in Data, the vegan population has grown from 2% in 2019 to 5% in January 2023. The term ‘flex’ is often used to describe people who still consume meat and dairy products but want to reduce their consumption. Diets based on large amounts of fruits and vegetables positively impact a person’s health. Vegan diet is plant-based and has become immensely popular in recent years. Many people are growing health conscious, which has boosted the adoption of this diet. Even though vegan diet was only limited to the vegetarian population in earlier days, it is now popular among non-veg consumers as well.

The trend of veganism is rising in the fast food sector as well, as consumers are demanding plant-based alternatives for sandwiches, burgers, and breads. For instance, in January 2023, fast food restaurant chain McDonald’s launched its all-new Double McPlant in all its restaurants across the U.K. and Ireland. The burger was developed with Beyond Meat, a plant-based food producer. The launch was inspired by the success of its plant-based burger 'McPlant' launched in 2021. With such famous market players taking the initiative to launch vegan fast food, there are several prominent opportunities for the quick-service restaurants market share to grow during the forecast period.

DRIVING FACTORS

Increasing Number of Food Malls and Food Courts is Driving the Quick-Service Restaurants Market Growth

Consumers often prefer shopping from multi-brand outlets under a single roof. Thus, food service providers are taking advantage of this consumer behavior by opening specialized multi-brand food courts/halls/malls under one roof. These malls are equipped with technologically advanced infrastructure to increase customer convenience, such as reducing preparation time, easy ordering, and easy accessibility to various foods. In food malls/courts, QSRs can significantly save the infrastructural cost, thus enabling owners to invest in cooking appliances and machinery.

These new developments in food courts and shopping malls are inclined toward improving F&B and lifestyle areas and providing more convenience by installing stand-alone food stalls and kiosks. The consumer footfall and stay time are increased by establishing food courts in retail stores due to the ongoing trend of consumers preferring to buy products from shopping malls. For instance, in February 2023, Rebel Food, a well-known internet restaurant company, launched its first-ever Smart Food Court in Pune, India. The new food court is technologically advanced, allowing consumers to order through kiosks, point of sale devices, and iPads by scanning the QR code. Customers are notified about their order through a WhatsApp message once it’s ready. The food court will have over 15 QSR brands under one roof with a dining area of around 3,000 square feet. With such innovative steps taken to attract more consumers, the market is expected to flourish in the coming years.

Increased Spending on Dining Out to Drive Market Growth

Growth of household income and rise of dual-income households in developing economies are the major factors prompting consumers to dine out. With increasing number of working women, families frequently visit restaurants or order food from outside. This factor has helped increase the customer footfall in dine-in establishments. With increasing footfall, the restaurants' revenues are also growing, thereby positively contributing to the market's growth.

The rapid expansion of food service outlets with unique and varied themes is gaining popularity among established and emerging markets globally, while franchising remains one of the most popular growth models. With the majority of the millennial population leaning toward fast food consumption, their spending on quick-service restaurants is more than their spending on traditional family restaurants. These restaurant chains use franchise business models to expand in different regions and cater to the rising demands of the millennial population.

RESTRAINING FACTORS

Rising Prevalence of Cloud Kitchens to Negatively Impact the Quick-Service Restaurants Market

A cloud kitchen, also called ghost kitchen/virtual kitchen, is a restaurant designed in a small confined space whose sole purpose is food preparation for delivery and takeout. This type of kitchen does not require the traditional restaurant design and can be built in a small, compact space. Thus, they have minimal overhead costs and do not require much capital to set up a new outlet. On the other hand, traditional restaurants require more staff, additional space, and furniture, which decreases their profit margin due to their higher maintenance cost. Thus, government bodies and associations have been promoting the cloud kitchen concept to influence the market growth. This initiative from government bodies will further increase the number of cloud kitchens and limit the growth of QSRs.

For instance, in April 2022, the National Restaurant Association of India (NRAI) Mumbai Chapter announced its first-ever convention for cloud kitchens, which was powered by Petpooja, one of India’s renowned cloud kitchens. The convention brought well-known cloud kitchen service providers together to understand the market dynamics and encourage more new players to enter the rapidly growing cloud kitchen sector. Therefore, changing dining preferences and rapid growth of the cloud kitchen industry will negatively impact quick-service restaurants owing to the convenience offered to consumers and higher profitability for operators.

SEGMENTATION

By Service Type Analysis

Consumers' Rising Interest in Restaurant Dining to Boost Demand for Dine-Ins

The market is segmented into dine-in, takeaway, and delivery based on service type. The dine-in segment is expected to lead the market growth in the coming years. Dine-ins include the revenue a restaurant generates through orders placed by consumers dining in. Many customers go out regularly for a complete dining experience due to hectic schedules or want to splurge and eat outside. This has resulted in increased footfall in restaurants.

Takeaway services were popular when the online food delivery concept was not popular in the market. However, during the last decade, the growth of online food delivery platforms has been exponential with the rising penetration of smartphones, changes in consumer lifestyle, ease of ordering food, and lucrative offers provided by operators to lure customers. With digital solutions being more prevalent worldwide, the delivery segment is expected to record the highest CAGR during the forecast period.

REGIONAL INSIGHTS

North America holds the largest global market share due to the increase in the number of working members in each house and rapid expansion of fast food chains. The U.S. is the largest QSR industry due to increasing preference among consumers for dining in quick-service restaurants. Gulf countries are predicted to record the highest CAGR in the coming years, owing to changing lifestyles, increasing number of tourists, and huge investments from government authorities to expand the food industry. In the U.S., Canada, and Mexico, the operating costs of companies offering food-related services are rising considerably. Rising prices of raw materials and labor wages are creating immense pressure on the profit margins of various companies. Hence, there is a major demand for automation and digitization in the food manufacturing and service spaces. For example, in 2021, Domino's announced its partnership with Nuro, one of the most renowned companies offering self-driving delivery services to launch an autonomous pizza delivery system in Houston, U.S. Customers can order by paying in advance and the Nuro R2 Robots will supply their orders.

Millennial consumers in countries, such as India, Indonesia, Malaysia, China, and South Korea, prefer to dine out in quick-service restaurants. These restaurants are exhibiting the fastest growth in the market as they offer high-speed delivery services on time. There is a growing demand for transparency regarding the sourcing and sustainability of food items among consumers visiting quick-service restaurants in Asia Pacific. Hygiene has become one of the critical factors that consumers consider while choosing their preferences. Hence, food service companies are sourcing fresh and natural ingredients, and preparing them under hygienic conditions to enhance consumer experience.

Europe is one of the most important players in the global QSR market. The robust expansion of the quick-service industry in the region is due to the growing trend of dine-ins and a hectic lifestyle. This factor has amplified the need for pre-cooked food items. Germany, with more than 83 million people, is home to some of the wealthiest food & beverage consumers. Hence, the country is the single largest market in the European Union. The key trends in the German quick-service restaurants are regional production, convenience, growing demand for Asian and other ethnic cuisines, and health & wellness. The high spending power of customers across Europe will further aid the market growth in Germany.

South America is home to some of the fastest-growing markets in the world, with Brazil, Argentina, Chile, Colombia, and Costa Rica being the fastest-growing economies in the region. Socio-economic factors, robust culture of dining out, and ease of access to affordable food options are the key factors accelerating the growth of this industry in South America.

The Middle East & Africa is expected to benefit from its growing e-commerce sector. The African region is underdeveloped, economically unstable, and imports most of the food items from other countries. The major regions and countries that export food items to Africa include the E.U., Brazil, and India. While France, Spain, the Netherlands, Italy, Germany, Russia, the U.K., and Turkey are the other countries from which the ME&A region imports foods and beverages for this industry.

KEY INDUSTRY PLAYERS

Key Players to Focus on New Product Development to Stay Competitive

This industry is experiencing significant growth owing to the increased demand for innovative, flavorful, and aesthetically appealing food products among consumers. Hence, major players, such as McDonald's Corporation, Burger King, Taco Bell, Pizza Hut, and many more regularly update their food offerings and launch new food items. This includes launching traditional and fusion dishes that provide a unique taste experience to consumers. They are also launching new products specifically targeted toward vegan customers. For instance, in May 2022, Domino's launched a fusion product named Paratha Pizza for consumers in India. Such product launches are expected to attract more consumers, supplementing the market growth in the coming years.

List of Key Companies Profiled:

• Chick-fil-A (U.S.)


• Papa John's International, Inc. (U.S.)


• Subway IP LLC (U.S.)


• Starbucks Corporation (U.S.)


• Yum! Brands, Inc. (U.S.)


• McDonald's Corporation (U.S.)


• Restaurant Brands International Inc. (Canada)


• The Wendy's Company (U.S.)


• Dunkin (Inspire Brands) (U.S.)


• Domino's Pizza, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• May 2022: Outback Steakhouse restaurants, owned by Bloomin' Brands, announced its plans to unveil new hotels that have modern aesthetics on its dining space. The company unveiled three new restaurants in Steele Creek, Fort Worth, and Polaris, U.S.


• March 2022: Starbucks Corporation announced its partnership with Grab, one of the most prominent firms in Southeast Asia. This partnership aimed to improve its services by catering to customers across Thailand, the Philippines, Indonesia, Malaysia, Vietnam, and Singapore.


• February 2022: McDonald's announced plans to launch its products in the Metaverse sector. The company intends to launch a virtual restaurant that features virtual and actual food products.


• February 2021: Yum! Brands, Inc. and Beyond Meat Inc. entered a strategic partnership to sell their plant-based chicken products in the U.S. Products, such as Beyond Fried Chicken were made available to consumers across KFC, Taco Bell, and Pizza Hut restaurants for a limited time.


• June 2020: Starbucks Corporation partnered with Impossible Foods and planned to launch new plant-based breakfast products for U.S. customers. The new menu included a plant-based breakfast sandwich made of cage-free fried egg and aged cheddar cheese.

REPORT COVERAGE

The research report provides detailed market insights and analysis and focuses on key aspects such as key players and their competitive landscape. Besides this, it offers key insights into the market trends and highlights key industry developments. In addition to the abovementioned factors, the report encompasses several factors contributing to the market's growth in recent years.

Report Scope & Segmentation