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

The North America food service market size was worth USD 1,087.43 billion in 2024. The market is projected to grow from USD 1,164.80 billion in 2025 to USD 1,886.64 billion by 2032, exhibhiting a CAGR of 7.13% during the forecast period.

The North America food service market is one of the largest and most dynamic markets in the world, driven by a highly urbanized population, busy lifestyles, and strong demand for convenient and diverse dining options. According to the National Restaurant Association (NRA), industry sales in the U.S. alone are forecasted roughly in USD 1.5 trillion range for 2024–2025. The U.S. dominates the market share, followed by Canada and Mexico.

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These figures reflect a modest but steady increase, with the total number of food service and drinking establishments rising by approximately 134,000 across these five years.

North America Food Service Market Trends

Technological Integration and Automation to Shape the Industry

From self-service kiosks to AI-driven ordering solutions, technology is revolutionizing the dining experience of today. Robotics in the kitchen, payment systems through digital platforms, and data analytics-based personalization of menus are enhancing customer interaction and business efficiency. Contactless solutions became the norm post-pandemic.

• For instance, in October 2023, Domino's Pizza announced a strategic partnership with Microsoft to leverage artificial intelligence (AI) and cloud computing to enhance pizza ordering and streamline store operations. This collaboration aims to create a more personalized customer experience and improve the efficiency of in-store processes.

Key takeaways

• By type segmentation, quick service restaurants accounted for around 38.85% of the North America food service in 2024.
• In the by service type segmentation, the delivery segment is growing at a CAGR of 9.35% in the forecast period.
• By restaurant type segmentation, the chained segment accounted for around 58.12% of the North America food service in 2024.
• The food service industry in the U.S. was worth USD 883.57 billion in 2024.
• In the country segmentation, Canada is projected to grow at a CAGR of 5.77% in the forecast period.

North America Food Service Growth Factors

Increase in Dining Out and Spending on Convenience to Boost Market Growth

Increased consumer demand for eating out and increasing demand for convenience food options are key drivers of North America food service market growth. Urbanization, hectic lifestyles, and the increasing disposable incomes are prompting consumers to eat out of home more often or use quick-service formats such as fast-casual restaurants, takeout, and delivery services. As per the U.S. Department of Agriculture (USDA), food-away-from-home (FAFH) expenditure in the U.S. has continuously risen, overtaking food-at-home spending in recent years. The structural change indicates consumers' demand for convenience, variety, and social dining experience.

• According to the USDA’s Economic Research Service, in 2023, Americans spent USD 4,485 per person on food away from home (restaurants, takeout, etc.), up from USD 4,004 in 2022.

North America Food Service Market Restraints

Labor Shortages and Rising Wages to Limit Market Growth

The food service sector in the North America offers the largest employment opportunities, yet still suffers from acute labor shortages. During the COVID-19 pandemic, employees deserted the sector, and restaurants have been unable to backfill vacancies, particularly within kitchens and front-of-house service positions. According to the U.S. Bureau of Labor Statistics (BLS), the leisure and hospitality industry consistently records job vacancy rates in excess of the national average. At the same time, minimum wage have increased and rising expectations for benefits have led to escalating labor costs, further tightening margins for operators.

North America Food Service Market Segmentation Analysis

By Type

Based on type, the market is segmented into different segments, including full-service restaurants, quick-service restaurants, institutes, and others.

With busy urban lifestyles, dual-income households, and time-pressed consumers, quick-service restaurants account for a largest proportion of the market.

Full-service restaurants are likely to expand highly during the forecast period as consumers are valuing experiences, high-end dining, variety, and social interaction.

By Service Type

Based on service type, the market is segmented into dine-in, takeout, and delivery.

Of these, the dine-in segment leads the market at present due to consumers' affinity for social interaction, ambiance, and full-service dining. Restaurants, cafés, and casual dining restaurants continue to draw maximum footfall as growing urbanization and lifestyle shifts boost dining-out culture.

The delivery segment, in turn, is expected to record the highest growth over the forecast period, at a CAGR of 9.35%.

By Restaurant Type

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

Chained segment takes the leading postion in the market as consumers in the U.S., Canada, and Mexico are attracted to established brands due to uniform food quality, standardized menus, and consistent experiences at different locations. Chains such as McDonald's, Starbucks, and Subway establish customer loyalty based on brand equity and advertising muscle. Larger chains take advantage of bulk purchasing of ingredients, technology, and equipment, lowering per-unit costs.

Independent restaurants offer distinctive flavors and customized service, which appeals to millennials and Gen Z who seek authenticity.

By Country

Based on country, the market is segmented into the U.S., Canada, and Mexico.

The U.S. accounts for the majority North America food service market share, i.e., 81.25% in 2024, followed by Canada and Mexico. Some of the major factors contributing to the growth of the food service sector in the country include the increase in disposable income of households with more people from a family getting employed, increased demand for personalization in services, and easier accessibility to a variety of food items. Mexico has a large youth population that lives in urban cities and leads a hectic lifestyle. The rapid increase in urbanization in the country has created a favorable market for the growth of the food service sector. This created an opportunity for restaurants to introduce traditional and foreign dishes in the market and increase their market penetration.

List of Key Companies in North America Food Service Market

McDonald's Corporation, Yum! Brands, Inc., Restaurant Brands International (RBI), Starbucks Corporation, and Darden Restaurants, Inc. are the leading companies in the food service industry in North America. McDonald's has 13,000+ outlets in the U.S. alone, becoming the largest fast-food chain in terms of number of outlets. Its franchising strategy allows it to grow quickly with less capital burden while ensuring consistency of offerings across locations.

Some notable small players, such as In-N-Out Burger, Shake Shack, Chopt Creative Salad Co., and others, operate in the market. These brands have strong distribution networks, steady menu innovation, and extensive spending on digital platforms, online ordering, and loyalty schemes to ensure operational flexibility.

LIST OF KEY COMPANIES PROFILED

• McDonald’s Corporation (U.S.)
• Yum! Brands, Inc. (U.S.)
• Restaurant Brands International (U.S.)
• Starbucks Corporation (U.S.)
• Bisquets Obregón (Mexico)
• Pizza Pizza Ltd. (Canada)
• Wendy’s Company (U.S.)
• MTY Food Group Inc. (Canada)
• Darden Restaurants, Inc. (U.S.)
• Tortas Locas Hipocampo (Mexico)

KEY INDUSTRY DEVELOPMENTS

• September 2025: Starbucks Inc. launched Protein Cold Foam and Protein Lattes in the U.S. The protein-boosted offerings will be a permanent addition to the menu, providing customers with a new way to customize their drinks with additional protein via protein-boosted milk and flavored cold foams, aligning with the company's strategy to modernize its beverage menu and appeal to health-conscious consumers.
• July 2025: McDonald’s Corporation announced plans to open 900 new U.S. restaurants by 2027. This expansion would come with the hiring of 375,000 additional employees.
• March 2025: Domino's Pizza Inc. launched a new pizza, Parmesan Stuffed Crust, in stores across the U.S.

REPORT COVERAGE

The report provides a detailed North America food service market analysis. It focuses on market trends, market dynamics, North America food service market demand and key industry developments, such as mergers and acquisitions. Besides this, the report also offers insights into the latest industry trends and international cuisine.

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