The global quick service restaurants (QSR)market sizeis projected to reachapproximately USD 577.71 billion by 2028, at a CAGR of 3.65% from 2021 to 2028. A quick service restaurant is a type of food service outlet which aims to provideconsumers with food as quickly and efficiently as possible. The term ‘quick-serve’ is often synonymous with ‘fast food’ and a majority of QSRs operate as chain restaurants using a franchise model.Most of the QSR environments are centered around functionality, with speed and efficiency being a primary goal. Few characteristics of a QSR arethat price point generally ranges from USD 5-8 per meal; limited menus generally consisting of handheld sandwiches or burgers, wraps, and a limited selection of pre-packaged salads; they usually offer plastic seating and tabletops; table services are rarely offered; and the food is most often taken to-go.
The outbreak of Covid-19 has caused a down surge in the food service industry as lockdown and “stay at home” orders given by governments across the globe and consumers preferring to stay indoors to curb the spread of the novel coronavirus. The pandemic has forced QSRs to close their doors to dine-in customers resulting in a sharp drop in QSR industry growth. However, with gradual relaxation of government norms, QSRsare primarily focusing on cleanliness and safety precautions to restrict the spread of the virus. Owing to this, there is a huge gap in supply and demand as there is a limitation in dine-in seats, reduced orders, and has even impacted operation time. Moreover, the QSRs are highly responsible for crowd management to follow social distancing norms. Moreover, with increasing internet penetration in developing areas of the world and the escalating growth of online food delivery services, food service outlets that are not being able to attract consumers are turning to either their own home delivery service or approaching third party food delivery platforms such as GrubHub and DoorDash. Therefore, gradual relaxation of government restrictions and rising popularity of online food delivery services are expected to drive the overall QSR industry during the forecast period.
The global QSRsmarket has witnessed high growth in recent years. An emerging strategy within the QSR industry involves the combination of culinary expertise, industry experience, and strategic marketing among food manufacturers, food distributors, and foodservice operators. This alliance, along with several other trends is re-shaping the QSR operation into a highly technological, efficient, and flexible enterprise. Additionally, growing hectic lifestyle and tight schedules of consumers have led to increasing demand for fast food and out-of-home eating. In several metro cities around the world, where people are working almost throughout the day, they tend to consume fast food to save time and money. For instance, according to a recent MRFR study, the total share of disposable personal income spent on food fell from 12% in 2000 to less than 7% in 2020. Our research figures further show that food away-from-home expenditures have grown to 44% of total household food expenditure, while food at-home expenditures have fallen to 56% in 2020. Also, the younger generation of emerging economies of the world tends to follow the Western culture, junk food chains such as Mc Donald’s and Subway which is further driving the overall QSR industry globally in 2020. However, despite the success of fast-food chains, takeaways, and franchises, the presence of unorganized small, independent, and family-owned restaurantsis restricting the growth of the QSRsmarket across the globe.
Wide availability of food options and quickservice
- Growing Tourism Industry:The rapid growth of global QSRsmarket is directly proportional to the growing tourism industry across the world. The hospitality & tourism industry has witnessed significant growth over the past few years both in developed and developed economies; this which, has accelerated the growth of QSRsindustry across the globe. According to the International Trade Administration (ITA), US, the total contribution of the travel and tourism industry to USA’s GDP in 2017 is over USD 1.6 trillion. According to Department of Commerce projections, the US will welcome 95.5 million international visitors annually by 2023. In the present scenario, the US leads the world in international travel and tourism exports and ranks third in terms of total visitation. Therefore, such growth in the travel and tourism industry in the US has led to increasing number of QSR outletsleading to the growth in the US market in 2020.
- Effective marketing strategies
- Hectic Lifestyle of Consumers
- Presence of street hawkers and family-owned small restaurants leading to Unorganized Market.
- Self-Serviced:These type of QSRs provideself-order menu that brings value to both restaurateurs and patrons. Orders made through self-serviceQSRs bring increased revenue per transaction as the value of the order is generally higher and eliminates the cost of table service. Not only does it enable restaurants to increase sales and reduce labor costs, but self-order menu also offers its consumers the control over their food and drink orders. Consumers can order from a touch-screen menu on a stationary iPad kiosk (Kiosk mode) or an iPad at their table (Table mode).VariousQSR chains are focusing on self-service apps and kiosks as consumers tend to spend more money as compared to other type of restaurants. Additionally, self-serviced QSRs enhances consumer experience by speeding up ordering time, reducing human error, and allowing for easier order customizations. These factors are expected to aid to the segmental growth worldwide during the forecast period.
- Assisted Self Serviced
- Full Serviced
- Single Outlet:
- QSR Chain: This segment accounted for the maximum market share in 2020 owing to increasing number of food service outlets across the globe. QSR chains are established with the purpose of expanding geographical presence, difference in culture and traditions, as well as cater to regional and local taste buds. For instance, Yum Foods—Taco Bell's parent company—launched a variety of special menu items—such as crunchy potato tacos and extra-spicy burritos filled with paneer—designed for local palatesin India. Similarly, in the Netherlands, McDonald's serves a McKroket—a fried beef croquette on a bun; in Germany, it offers shrimp with cocktail sauce.Additionally, the popularity of QSRs is maintained across its outlets due to standard taste, quality, service, and hygiene. Therefore, increasing regional footprints of QSRoutlets are driving the worldwide market growth.
- North America: North America dominated the global QSRsmarket in 2020. Strong real estate industry, presence of popular QSR chains, and hectic schedule have impacted the lifestyle of Americans. Growing travel and tourism industry;increasing number of emigrants; presence of diverse food culture;and wide availability of a range of cuisines have led to the growing demand for QSRs in the region.
- Asia-Pacific: Asia-Pacific is a new revenue pocket for the QSRsmarket.The growing populationin China and India hascreated an opportunistic market for the existing players.Increasing exposure to international cuisine and culture andthe willingness to experiment with food items have further fueled the regional market growth. Additionally, attractive seasonal offers and happy hour discounts offered by QSRs are further aiding to the growth in Asia-Pacific.
- Rest of the World
- Subway IP LLC (US)
- McDonald's Corporation (US)
- Restaurant Brands International Inc. (Canada)
- Yum! Brands, Inc. (US)
- The Wendy's Company (US)
- Domino's Pizza, Inc. (US)
- Papa John's International, Inc. (US)
- Wallace, Fujian Food Co., Ltd. (CNHLS) (China)
- Inspire Brands, Inc. (US)
- The Coca-Cola Company (Costa Coffee) (US)