U.S. Food Service Market Size, Share & Industry Analysis, By Type (Full Service Restaurants, Quick Service Restaurants, and Others), By Product Type (Mediterranean, Halal, and Others), By Diet Type (Vegan, Vegetarian, and Non-Vegetarian), and Country Forecast, 2025-2032

The U.S. food service market size was valued at USD 1,202.65 billion in 2024. The market is projected to grow from USD 1,286.65 billion in 2025 to USD 2,066.21 billion by 2032, exhibiting a CAGR of 7.0% during the forecast period. 

The food service market, also known as the food service industry, consists of all activities and businesses involved in preparing, serving, and distributing food and beverages to consumers across the globe.

The food service industry is one of the major economic forces in the U.S., and its impact is felt in almost every other part of the country. From fast food restaurants, including full-service restaurants, to fine dining foodservice establishments, the market is gaining the utmost importance among consumers compared to any other sector.

Some prominent market operators include McDonald's Corporation (U.S.), Domino's Pizza, Inc. (U.S.), and Darden Restaurants, Inc.

U.S. Food Service Market Overview & Key Metrics

Market Size & Forecast:

• 2024 Market Size: USD 1,202.65 billion
• 2025 Market Size: USD 1,286.65 billion
• 2032 Forecast Market Size: USD 2,066.21 billion
• CAGR: 7.0% from 2025–2032

Market Share:

• The quick service restaurants segment dominated the U.S. food service market in 2025, driven by increasing consumer demand for convenience, affordability, and fast-paced dining options.
• By product type, the Mediterranean segment is projected to grow significantly due to the popularity of communal dining and the preference for fresh, healthy ingredients.
• Non-vegetarian diet type held the largest market share in 2025, supported by rising consumer interest in protein-rich meals and high consumption of meat and poultry across the country.

Key Country Highlights:

• United States: Market growth is fueled by rising disposable income, increasing fast food consumption among younger demographics, and rapid digitalization in restaurant operations.
• Government initiatives to reduce diet-related diseases and support for sugar reduction targets are reshaping food service offerings.
• Meal kit services and AI-powered restaurant management systems are emerging trends driving innovation and growth in the market.

MARKET DYNAMICS

Market Drivers

Increased Consumer Spending on Fast Food to Drive Market Growth

In the U.S., fast food consumption is increasing due to the shortage of time to cook meals at home and the growth of fast food chains. The increasing number of fast food chains offering international cuisine types is the center of attraction, and the young population is at the forefront of the consumers of fast food chains. With the increasing number of fast food service outlets, young consumers spend more on food outside the home.

According to the U.S. Department of Commerce, in October 2022, U.S. consumers' real personal disposable income increased by 0.4%. As family disposable income increases, consumers spend more on hotels, restaurants, cafes, and other places.

Focusing on millennial consumers' preference for quick-service restaurants, leading fast-food outlets such as Starbucks, Domino's, Taco Bell, Pizza Hut, KFC, Burger King, Papa John's Pizza Subway, McDonald's, Wendy's, and Chipotle Mexican Grill food chains are seizing the opportunity by launching products that are vegan to meet the customer demand. Hence, increased consumer spending is driving the U.S. food service market growth.

Rising Number of International Brands Augments Market Growth

The rising number of international food service companies opening newer food service facilities and building franchise networks has skyrocketed the revenues across the U.S. In addition, the increasing number of beverage shops and snack centers offering premium-based dine-out and online delivery services favors the services industry growth across America. According to the National Restaurant Association (NRA), 8 out of 10 restaurant operators expected their food service sales to grow in 2025 compared to 2024.

MARKET RESTRAINTS

Different Health Issues Associated with Excessive Consumption to Restrain Market Growth

Over the last few years, consumers have been more inclined toward eating fried foods, dry foods, and various beverages. Food products are categorized into different types based on the raw materials and the techniques used in manufacturing. Unhealthy food impacts human health, leading to obesity, diabetes, cardiovascular disease, and high blood pressure-related issues. According to the National Salt and Sugar Reduction Initiative (NSSRI), diet-related diseases are among the leading causes of death in the U.S. The usual American diet is high in sodium and sugars, which can negatively affect health.

In the U.S., more than two-thirds of adults and nearly one-third of children are overweight or overweight, and around one-third of adults have high blood pressure. These conditions increase the risk of major diseases, including heart disease, diabetes, stroke, and cancer. Thus, consuming products that contain sugar in unregulated quantities can severely impact the health of diabetic people. Hence, it hampers the growth rates of the market. However, the government has taken several initiatives and taxed unhealthy products to decrease consumption. In February 2021, the NSSRI initiative announced sugar reduction targets for 15 food and beverage categories.

MARKET OPPORTUNITIES

Increasing Demand for Home Meal Kit Options Offers Lucrative Market Growth Opportunities

Over the years, the meal kit option has grown significantly as many individuals prefer to order ready-to-cook meals, which are better than fast food. These kits allow consumers to eat the right food, especially when juggling personal and professional commitments.

Moreover, the demand for meal kit consumption is enormously increasing, owing to their cost-effectiveness and time-saving. The cost of eating in a food service outlet caterer such as a cafe or restaurant, is almost five times that of cooking from scratch. Also, as the meal kit delivers an appropriate proportion of ingredients, it saves time while making a meal. Such instances can thus boost the adoption rate of meal kit options across the U.S. market. For instance, in April 2022, Smoothie King, a smoothie chain in Texas, announced the launch of its latest “Nourish Daily Subscription” Program,  which allows consumers to customize their ingredient boxes that can be further used for blending smoothies at home. This smoothie box can be ordered for pick up or scheduled delivery in quantities 7, 14, and 21.

U.S. FOOD SERVICE MARKET TRENDS

Digitalization in Overall Business Process is a Key Market Trend

The wobbling global trade, changing political environment, and macroeconomic factors provide crucial challenges for market players operating in this market with their strategies, supply chains, business models, and employees getting stressed to higher levels after COVID-19. The repercussions of challenges faced by this industry after the COVID-19 pandemic are providing opportunities to find solutions to avoid devastating effects on the industry. Increasing technological advancements, digitalization in the overall business process, and the need for new holistic approaches are factors vital in the coming years in shaping the food service industry and bringing it back to normal pre-pandemic levels.

Millions of hotels & restaurants are in distress while reshaping their business strategies, and the consumption behaviors of consumers have substantially changed, further providing challenges to individual hotel owners. Manufacturers use innovation and adapt digitalization in their food chains to increase the productivity of restaurant processes. For instance, in March 2025, Yum Brands, the parent company of KFC, Pizza Hut, Taco Bell, and Habit Burger & Grill, collaborated with Nvidia to integrate artificial intelligence solutions across Yum!’s global restaurant network. Such digital transformations in business operations provide lucrative growth opportunities for the market.

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IMPACT OF COVID-19

The COVID-19 pandemic significantly impacted the U.S. food service, quick service, limited service, and other food industries. In the U.S., the COVID wave hit hard between June and October 2020. Almost all the dining-out facilities were shut down due to the spread of the disease; hence, the food industry was also negatively impacted. According to the U.S. Department of Agriculture (USDA), U.S. consumer food spending was 8% less in 2020 compared to 2019. The decrease in food expenditure was mainly due to the national emergency declared in the country to curb the spread of COVID-19.

However, online ordering was enabled, and food trucks were operative for takeaway facilities, but they did not record their average sales and saw a dip in consumer visits. The impact on travel and tourism also led to an adverse effect on the food service market. Thus, the shortage of raw materials affected food preparation in catering, restaurants, and hotel services. Moreover, the social distancing rules and labor shortages reduced the availability of many chefs or key cooks in this industry.

SEGMENTATION ANALYSIS

By Type

Quick Service Restaurants Segment Leads Due to Availability of a Variety of Food and Beverages at Competitive Prices

Based on type, the market is segmented into full service restaurants, quick service restaurants, and others.

Of all the segments, the quick service restaurants segment secures the prominent position and holds the largest revenue across the U.S. food service market share. Convenience services have become increasingly popular with an individual’s life adopting a faster pace. Likewise, in the food service sector, Quick Service Restaurants (QSRs) offer convenient options for good quality food at affordable prices. In addition, the rising culture of eating out, the growing number of working couples, and the escalated surge in delivery and takeaway have positively allowed the QSR industry to gain popularity.

Besides this, the other categories, including institutional catering, food trucks, online food delivery, and cloud kitchens, are also gaining traction among the younger and older generations. With increasing hectic schedules and growing demand for convenience, consumers seek online delivery options. Over the past few years, the online food delivery industry has witnessed massive growth. It has emerged as one of the easiest and most comforting alternatives for fulfilling customer preferences and other factors such as affordability (discount coupons), convenience, and easy-to-place orders.

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By Product Type

Rising Focus on Great Social Dining Experience to Fuel Mediterranean Segment Growth

Based on product type, the market is distributed in the Mediterranean, halal, and others.

The Mediterranean segment is expected to hold a major share of the market. Mediterranean foods are becoming increasingly popular as they contain fresh ingredients such as whole grains, legumes, fruits, and lean proteins such as poultry and seafood, which appeal to consumers looking for healthier options. Moreover, the popularity of Mediterranean food is majorly due to communal dining as these meals are family-style and shared among family and friends, making it a great social dining experience.

Out of all the categories, other segments, which include all food products except Mediterranean and halal, such as Asian, European, American, Thai, Mexican, Spanish, and many more, are expected to generate the maximum revenue. The consumption of different types of cuisines has been fueled by the increased demand of consumers to experiment with cross-cultural cuisines and rising innovation in a wide variety of dishes.

The halal segment observed negligible growth in the U.S. market, primarily due to the small population of Muslims and a willingness to try the basic food recipes, thereby slowing the development of segments.

By Diet Type

Rising Consumer Interest in Protein-Rich Diet to Fuel the Demand for Non-Vegetarian Diet

On the basis of diet type, the market is divided into vegan, vegetarian, and non-vegetarian.

The non-vegetarian segment witnessed remarkable growth in 2024 and is expected to outgrow in the coming years. A non-vegetarian diet comprises chicken, fish, meat, and eggs, which are rich in vital nutrients and amino acids. In addition, a non-vegetarian diet is a great source of complete protein as it possesses all 9 essential amino acids the body requires. Other crucial minerals and vitamins, such as calcium, iron, and vitamin B12, can also be attained if an individual stays on a strong, non-vegetarian diet. According to “Steak Holder Foods,” an Israel-based food company, in 2022, stated that around more than 50 billion chickens are farmed each year, and in the U.S., more than 8 billion are slaughtered for meat, thus making it the most popular meat consumer across the world.

On the other hand, veganism and vegetarianism are growing at a limited pace compared to the non-vegetarian phenomenon. Veganism is still at its nascent stage and is mainly followed by millennials who are highly concerned about their health and wellness, as well as the health.

COMPETITIVE LANDSCAPE

Key Industry Players

Market Leaders Embark on New Product Launches to Emerge as Leaders

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The food service sector in the U.S. is diverse and competitive, featuring a mix of large corporations and smaller businesses vying for greater market share. Some prominent players in the industry include McDonald's Corporation, Darden Restaurants, Inc., and Yum! Brands, Inc., Chipotle Mexican Grill, Inc., and Starbucks Limited. McDonald's Corporation is one of the world's largest fast-food chains, emphasizing high-quality customer service and implementing robust marketing initiatives and promotional activities to attract customers. Companies are continuously improving their current product offerings and launching innovative food items. The product includes launching traditional and fusion dishes that provide a unique taste experience to the consumers.

LIST OF KEY U.S. FOOD SERVICE COMPANIES PROFILED

• McDonald's Corporation (U.S.)
• Starbucks Corporation (U.S.)
• Subway IP Inc. (U.S.)
• KFC Corporation (U.S.)
• Burger King (U.S.)
• Dunkin's (U.S.)
• Domino’s (U.S.)
• Baskin-Robbins (U.S.)
• Wallace (U.S.)
• Popeye's (U.S.)

KEY INDUSTRY DEVELOPMENTS

• December 2024: Value Food Service (VFS), a store operator in the franchise restaurant industry, acquired an additional 11 Kentucky Fried Chicken (KFC) restaurants to build its KFC portfolio to 59 KFC locations and strengthen its presence in the U.S. food service industry.
• July 2024: Yum! Brands, Inc. expanded its Voice AI technology across its Taco Bell drive-through locations in the U.S. The company was targeting the adoption of such a technology by its 100 stores by the end of 2024. The technology enables outlets to enhance back-of-house operations for team members and elevates the order delivery experience of their customers.
• June 2024: Starbucks Corporation, a Seattle-based coffee service chain, expanded its U.S. delivery partnership with Grubhub, a Chicago-based food delivery company, to increase its coffee services reach in Colorado, Illinois, and Pennsylvania, U.S.
• April 2024: Fiserv, Inc., a global provider of financial technology and payment solutions, enabled U.S.-based restaurants to streamline their food service operations by launching a new Clover Kiosk and an enhanced 24” Clover Kitchen Display System for end-to-end order management.
• March 2024: Subway, a global restaurant brand, signed a 10-year agreement with PepsiCo to increase its supply rate of beverages in U.S. restaurants. In addition, during the year, the brand extended its partnership with Frito-Lay to build its snacks and beverages portfolio in the U.S.
• October 2023: Foodservice, an independent food distribution company, partnered with UniPro, an American food service distribution cooperative, to build service innovation and enhance supply chain efficiencies.

INVESTMENT ANALYSIS AND OPPORTUNITIES

Technological Innovations and Digitalization to Offer Market Opportunity

Advancements in technology in service automation, as well as digital extension of omnichannel initiatives that propel specialty offerings, subscription-based marketing, and reward programs that enable product personalization and multiple delivery channels, are predicted to persist and lead to anticipated growth in all food service categories. The food service industry in the U.S. has been experiencing a surge in investments, especially in digital transformation, automation, and health-centric menus. Most of the investments are directed toward cloud kitchens, sustainable food initiatives, and franchising.

REPORT COVERAGE

The U.S. food service market research report includes a market overview and quantitative and qualitative insights. It also offers a detailed market analysis growth rate for all possible segments. The report presents key insights: an overview of related markets, the competitive landscape, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and market trends.

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REPORT SCOPE AND SEGMENTATION