Food Service Market Size, Share & Industry Analysis, By Type (Full Service Restaurants, Quick Service Restaurants, Institutes, and Others), By Restaurant Type (Chained, and Independent), By Service Type (Dine-In, Takeaway, and Delivery), and Regional Forecast, 2025-2032

The global food service market size was worth USD 3,486.58 billion in 2024. The market is projected to grow from USD 4,027.61 billion in 2025 to USD 6,810.86 billion by 2032, exhibiting a CAGR of 7.79% during the forecast period. The United States food service market is projected to grow significantly, reaching an estimated value of USD 1,767.54 Billion by 2030. Moreover, the food service market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 1.71 billion by 2032, driven by the rising number of fast food chains and increased consumer spending on fast food consumption. Asia Pacific dominated the food service market with a market share of 45.71% in 2024.

The food service establishment refers to any business that prepares and distributes food for on-premise consumption, takeaway, and delivery. This industry includes food service retailers, counter and table servers, and food service providers. The global food service market is boosting fast food consumption globally due to rising household incomes, the number of working women, and the convenience offered by fast food businesses.

During the early days of COVID-19, foodservice customers underwent huge changes in their consumer behavior toward restaurants and menus.  Lockdowns and stringent dine-in restrictions, a response to the widespread pandemic, initially prevented customers from enjoying dine-in experiences. Even in countries with less strict consumer restrictions, consumers were cautious about dining out due to concerns about the potential transmission of COVID-19. This trend hit the food service market size very hard, and a dip of almost 30% was recorded in the industry sales for the year 2020.

Food Service Market Trends

Accelerating Business Through Digitalization is the Latest Trend Being Adopted by Restaurants

Rising consumer footfall to stores after the lifting of COVID-19 restrictions and the need to optimize businesses while ensuring profitability have prompted owners to digitalize their operations. The trend of going digital, which started in the last decade, accelerated in the wake of COVID-19 when the priority for almost all food service outlets was to keep the restaurant running without shutting down. Robotics and the use of AI in food service operations have gained significant traction. Manless cafés, such as Briggo Cofee in the U.S., an unmanned cafe in Korea, and Chowbotics in California, are examples of fully digitalized cafes that emerged during the pandemic times. 

Apart from these fully unmanned cafes, the use of cooking robots in different positions is another latest innovations adopted by restaurant owners to minimize spending on manpower and optimize business operations. Some successful examples of robots being used in cooking include a burger-making robot at a White Castle Burger in California, DaVinci Kitchen in Germany using robots to make pasta, and robots serving dishes to customers in many restaurants across the globe. Such innovations are helping restaurant owners optimize their businesses and attract new enthusiasts and curious consumers to try these robot-made dishes and kiosks. The market trends of digitalization and technology adoption, coupled with the ongoing hype of using AI in business automation, are expected to propel the food service industry in terms of innovations and digitalization during the forecast period.

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Food Service Market Growth Factors

Increasing Number of Food Courts and Food Malls is Driving Market Growth

The trend of shopping and food malls has rapidly expanded in developed and developing countries. The trend of shopping malls, which was earlier concentrated only in metro cities, is now spread to tier 2 and tier 3 cities. Consumers increasingly prefer shopping at multi-brand outlets all under one single roof. Recognizing the consumer behavior, this industry is capitalizing on the trend of by establishing specialized multi-branded food courts /malls/ halls within these shopping complexes. New shopping centre developments and extensions are increasingly focusing on designing F&B and lifestyle areas, including stand-alone food stalls and kiosks.

Moreover, incorporating technology in food and beverage plays a vital role in the food service industry. Starbucks Corporation and Dunkin’ Donuts have greatly expanded the role and reach of traditional coffee shops by introducing mainstream audiences to specialty beverages and proprietary coffee blends. For instance, Starbucks, as a part of its marketing strategy, initially wrote the wrong spellings of the customers' names so that they could post about it on social media and attract more customers. Such attractive campaigns are expected to drive the growth of the food service market.

Increased Spending On Food Consumed Out Of Home To Drive Growth Of Market

Changing consumer lifestyles and growing incomes in developing countries are the main factors causing consumers to increasingly consume food away from home. Moreover, with the rise in the number of working women in employment, families frequently visit restaurants or order coffee and snacks from outside. Considering the popularity of fast food among the young population, many international quick-service and hotel brands are expanding their presence in foreign markets. Opportunities for foreign food exporters to supply into the HRI sector are improving as demand for many regional ethnic foods is also increasing. These factors are emerging as major factors boosting the food service market growth.

RESTRAINING FACTORS

Negative Impacts of Online Food Delivery May Hinder the Market Growth

Online food ordering, which most consumer groups have adopted, is increasing in the food service industry. However, some negative aspects associated with online food ordering hinder customer adoption. Along with the many benefits of food delivery, certain drawbacks exist. For example, the quality of the delivered food often falls below that of the meal served in a restaurant. Transportation over long distances can lead to a loss of valuable vitamins in the food. In addition, food from delivery services is often packaged in plastic packaging, which usually won’t be too appealing compared to the food neatly placed on plates in a restaurant. These factors impact and challenge the growth of the market.

Food Service Market Segmentation Analysis

By Type Analysis

Full Service Restaurants Segment Holds a Leading Market Share Due to the Availability of Different Varieties on the Food Menu

Based on type, market is divided into full service, quick-service, institutes, and others.

Full service restaurants include establishments providing table service in brick-and-mortar establishments, offering a have a full meal menu and hence they constitute the highest market share of the global market. They offer menus in multiple selection types, including breakfast, comprehensive meal menu with selection for lunch and dinner. These establishments, particularly fine dining and casual dining restaurants, focus on eclectic, high-quality interiors, high service standards, extensive beverage offerings, and sophisticated decor and ambience to attract customers. Moreover, staff members are usually highly trained, and there is often a dress code for patrons. Meanwhile, quick service restaurants are also expected to grow in the market, featuring a limited menu that specializes in selective main entrees such as burgers, pizza, or chicken.

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By Restaurant Type Analysis

Rapid Expansion of QSR Chains in Untapped Markets Offers Promising Market Growth

Based on restaurant type, the market is bifurcated into chained and independent.

Chained restaurant type is expected to grow with the highest CAGR over the forecast period. A chain restaurant is an eating establishment operating under its restaurant in multiple locations with the same name and the same menu everywhere. Chained restaurants usually work in two verticals: company-owned or franchise. Conventionally, a single-parent company or master franchise company owns all the locations. In the chained restaurant businesses, the parent company maintains the quality and management of the food and supply chain.

A major advantage of chained restaurants over independent restaurants is that they have a fixed menu with a fixed proportion of ingredients to maintain the uniformity of the food at every location. Applying a central marketing strategy for all the stores becomes easier in chained businesses as the strategies mostly revolve around consumer demand and sentiments. The proprietor owns independent restaurants and is not affiliated with any food business chain. The owner has authority over all restaurant operations, including procurement of the food to the supply chain.

In a few countries, such as the U.S., penetration of chained restaurants is very high compared with that of independent restaurant chains. This is mainly because fast food is the most consumed food type in the U.S. Consumers usually prefer having pizza, burgers, sandwiches, and coffee as their everyday meal, and hence, restaurant chains offering these foods are very much popular. Restaurant chains such as McDonald’s, Domino’s, KFC, Pizza Hut, Taco Bell, and Burger King have their presence in all the leading developed and developing economies, which is the major reason for the rapid growth rate of the chained restaurants for the upcoming decade. The growing popularity of fast food chains among millennial consumers and failure rates for independent restaurant owners are the major reasons that will boost the share of chained restaurant units in the coming years. 

Independent restaurants’ penetration in the developing countries is high as compared to the chained restaurants, mainly because of the difficulties involved in the market like entry for chained restaurants. Independent restaurants make use of their local market expansion expertise and attract consumers through local fusion dishes.

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By Service Type Analysis

Delivery Segment to Dominate the Market owing to Consumer Preferences

In terms of service type, the market is fragmented into dine-in, takeaway, and delivery.

The delivery segment is expected to grow with the highest CAGR over the forecast period. Consumer preferences for on-premise dining have changed drastically after the COVID-19 pandemic. Consumers over the last couple of years, consumers are leaned toward dining experiences beyond conventional, seeking quality and variety in foods. They show a preference for new ways of ordering and paying for their meals.

The majority of the regular visitors to dine-in establishments returned to the pre-pandemic levels of visiting dine-in restaurants in late 2022; however, the frequency of visits decreased significantly. To boost up the dine-in segment, offering innovative and digital experiences to consumers will be the key to increasing their frequency of restaurant visits. In response to declining dine-in footfall, restaurant businesses are making significant efforts to provide consumers with easy access to the menu and order food through phones.

Food delivery and takeout segments are growing rapidly over the pre-pandemic levels owing to the significant use of Artificial Intelligence (AI) and digital technology in food ordering processes. Ordering food through smartphones and receiving a meal quickly through food delivery remains an acute component of convenience. With the increasing population globally, the growing working demographic, often constrained by time, seeks online food delivery services. This shift in demands has changed the way in which restaurants serve their customers. It helped the restaurants reach a wide customer base by delivering to consumers in distant locations. Online food delivery has also increased the restaurant's visibility for consumers, proliferating growth opportunities for restaurant owners. Restaurants can deliver food to consumers living in distant places using food delivery operators or their own staff. Such factors benefit both the consumers and restaurant owners in one way or the other. These aspects remain the market-boosting potential factors that will shape the food service industry in the coming decade.

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REGIONAL INSIGHTS

By geographically, the market is studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

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Asia Pacific held the largest food service market share in 2023 and is also expected to experience the highest growth rate during the forecast period. Quick-service restaurants exhibit significant growth in the market as they have higher preparation speed and quicker service times. Cloud kitchens have also gained significant market share in the Asia Pacific market over the last few years owing to their quick service and attractive menu items, luring millennial consumers. To explore the market potential for cloud kitchens in India, “Rebel Foods”, one of the largest internet restaurant companies in India, launched EatSure’s second smart foodcourt in Pune. The new food court offers nearly 15 brands across various food categories under a single roof. The food court is spread across a large dining area of nearly 1000 sq ft and offers a digital customer experience.

In another instance, to promote the historical site in India, The Archaeological Survey of India started the first food court inside the Vellore fort in Tamilnadu. With a spacious dine-out area, the new food court accommodates nearly 50-60 people at a time, offering North and South Indian cuisines under a single roof. Snacks, beverages, chat items, and ice creams are also sold in the food court. Such new start-ups and business expansions are expected to boost industry growth during the forecast period.

In North America, the U.S. is the largest market for food service. U.S. is the home to the largest food chains in the world, such as Starbucks, Chipotle Mexican Grill, Papa Johns International, McDonald’s, Yum Brands, Domino’s, and Restaurant Brands International. The U.S. consumers are very much attracted to fast-food items such as hamburgers, pizza, sandwiches, chicken wings, and others, which enable these fast-food chains to expand their businesses in new territories and capture customers' attention easily. Canada’s food service industry is dynamic and contributes nearly 4% to the GDP.

Canada’s food service industry is divided into two major segments: commercial and non-commercial. The commercial segment includes caterers, restaurants, and drinking establishments, while the non-commercial segment includes institutional, hotels, and other food service operations. The commercial food service segment accounted for nearly 80% of the industry revenue, while the non-commercial segment accounted for 20%.

Europe is one of the significant global regions, and the hospitality industry is huge in the region. The growth of the European food service industry is supported by the rising trend of eating out and a busier lifestyle, increasing the demand for prepared food items. France is the largest European market in convenience, regional production, health & wellness, and Asian and ethnic cuisines. The high spending capacity of consumers in France further boosts the growth of the market.

The South American region is one of the fastest-growing food service industry regions in the world. Among the different service types in the region, full service restaurants account for the largest market share, followed by quick-service restaurants. In South America, independent restaurant operators dominate the food service industry over the chained restaurants. According to the Food Service Brazil Institute, restaurant chains made up nearly 15% of total restaurant unit counter, with independent and small-medium operators contributed the remainder.

The Middle East & Africa region has experienced good economic growth in recent years. The Middle East region is home to a unique and profitable restaurant industry that is predicted to grow strongly, with higher standards of living coupled with an ever-increasing number of tourists. This region experiences a high demand for suitable dining options with travelers from various countries visiting the GULF countries. Africa’s food service industry is growing mainly due to a growing middle class and an increasing population.

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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 consistently update their food offerings and introduce new food items. 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 TOP FOOD SERVICE COMPANIES:

• McDonald’s (U.S.)


• Starbucks (U.S.)


• Restaurant Brands International Inc. (Canada)


• Costa Limited (U.K.)


• Tim Hortons (Canada)


• Dominos (U.S.)


• KFC Corporation (U.S.)


• Supermac’s (Ireland)


• Jollibee (Philippines)


• Baskin Robbins (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• January 2024: Restaurant Brands International entered into an agreement to acquire all shares of Carrols Restaurant Group in an all-cash transaction. Carrols, Burger King’s largest U.S. franchisee, which operates more than 1,000 Burger King units and more than 50 Popeyes units across 23 states in the U.S.


• September 2023: Fat Brands, a popular company in polished dining segment, acquired Smokey Bones Bar & Fire Grill from Sun Capital Partners for USD 30 million. The acquisition is expected to help Fat Brands by increasing its EBITDA by about USD 10 million and expand its control over 61 new locations.


• March 2023: Starbucks announced its plan to open around 100 new stores in the U.K. over the next year as part of the company’s Europe-wide investment program. Starbucks currently has more than 1,000 sites in the U.K., with an investment of around USD 35 million; the company  also planned to refurbish its store estate over the next three years.


• June 2023: Pizza Hut introduced a new crispy and cheese-loaded pizza on the menu designed solely for individual consumption. The newly launched pizza “Pizza Hut Melts” is a single-serving pizza best for snacking, and on-the-go eating.


• February 2022: White Castle hamburger chain expanded its partnership with Miso Robotics to install “Flippy 2”, its robot making burger in 100 more locations. White Castle's partnership with Miso's technology was solidified after a positive impact on daily operations and increased employee productivity in the restaurant, following the testing of its first robot in the Chicagoland Area in 2021. 

REPORT COVERAGE

The research report provides qualitative and quantitative insights into the market. It also offers a detailed analysis of its type, service type, restaurant type, market size, and growth rate for all countries in the market. Along with this, the report offers an elaborative analysis of the market dynamics and competitive landscape. Key findings and insights cover related market overview, research methodology, recent industry developments, key strategies such as mergers and acquisitions, the regulatory scenario in critical countries, and key industry trends.

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Report Scope & Segmentation