Quick Service Restaurants Market Size, Share & Industry Analysis, By Service Type (Dine-In, Takeaway, and Delivery), By Cuisine Type (American, Italian, Asian, and Others), By Restaurant Type (Chained and Independent), and Regional Forecast, 2024-2032

The global quick service restaurants market size was worth USD 894.68 billion in 2023 and is projected to grow from USD 971.36 billion in 2024 to USD 1,930.14 billion by 2032, exhibiting a CAGR of 8.96% during the forecast period. Moreover, the quick-service restaurant market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 599.87 billion by 2032, driven by increasing consumer preference for dining in quick-service restaurants.

The food delivery business has observed rapid growth recently with the rise in food delivery websites and applications. Major 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, 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, this service would be curated for higher-demand neighborhoods.

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 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.

Quick Service Restaurants Market Trends

Rising Trend of Vegan Food Consumption to Support Market Growth

Veganism is a new food trend that is growing at a strong pace 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 yet want to reduce their consumption. Diets based on large amounts of fruits and vegetables positively impact a person’s health. The 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 the 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 in the quick service restaurant market is also rising in the fast food sector as consumers are demanding plant-based alternatives for sandwiches, burgers, and breads. For instance, plant-based startups Väcka and Libre Foods based in Spain launched The Veggie Burger Warriors, an attractive campaign offering vegan burgers in restaurants across Spain in November. The campaign will showcase Väcka’s 100% plant-based cheddar as the top choice for burger toppings, providing a taste and texture similar to animal products. With such famous market players taking the initiative to launch vegan fast foods, there are several prominent opportunities for the quick service restaurants market share to grow during the forecast period.

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Quick Service Restaurants Market Growth Factors

Growing Number of International Tourists to Supplement QSR Market Growth

The expanding global tourism industry has significant impacts on the key pointers of the economy and also on the progress of many financial segments: communications, transport, infrastructure & recreational areas, trade relations, modernization of agriculture, and the restaurant industry. GDP generated through the tourism industry directly impacts travel agents, hotels, airlines, other transport services, and restaurants and leisure industries. Over the last few years, the tourism industry has observed continuous growth in the travel companies and agents operating in the industry. As the COVID-19 pandemic spread across the world, the tourism industry was hit hard. However, this industry rebounded to its original capacity in 2022 and reached the pre-COVID-19 levels in 2023, supplementing the food service industry significantly.

According to the UNWTO World Tourism Barometer 2022, international tourism reached 63% of pre-pandemic levels, mainly due to the strong need to escape confinement and the lifting of travel restrictions in popular countries across the world. More than 900 million international tourists traveled in 2022, doubling the numbers recorded in 2021. However this figure was still 37% lower than that of 2019. Europe, which is the favorite destination for international travelers, observed more than 550 million tourist arrivals in 2022, which was almost 80% of 2019 levels. While Europe recorded the highest number of tourist visits, the Middle Eastern region recorded the highest increase in the number of tourist visits since 2019 levels, reaching 83% of the pre-pandemic numbers. The African and American regions recovered around 65% of the pre-pandemic tourist visits, while Asia Pacific recorded only 23% of tourist visits of 2019 levels due to pandemic-related restrictions. The growing number of tourists worldwide over the years is expected to proliferate the quick service market forecast. To attract more customers and international tourists, many QSR operators are engaging in expanding their business units in new areas and targeting new customers.

Rebel Foods, one of India's largest internet restaurant companies, launched EatSure’s second smart foodcourt in Pune. The new food court offers nearly 15 brands across various categories under a single roof. It is spread across a large dining area of almost 1,000 sq. ft. and provides a digital customer experience.

In another such instance, to promote historical sites of India, The Archaeological Survey of India (ASI) started the first food court inside the Vellore fort in Tamil Nadu. With a spacious dine-out area, the new food court accommodates nearly 50-60 persons at a time. It offers North and South Indian cuisines under a single roof. It also sells snacks, beverages, chaat items, and ice creams.

Increased Spending on Dining Out to Drive Market Growth

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

Food service outlets with unique and varied themes are gaining popularity in established and emerging markets globally, while franchising remains one of the most popular business 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 fast food chains use franchise business models to expand in different regions and cater to the rising demands of the millennial population.

RESTRAINING FACTORS

Rising Presence of Cloud Kitchens to Negatively Impact Market

A cloud kitchen, also called a ghost kitchen/virtual kitchen, is a restaurant designed in a small confined space whose sole purpose is preparing food for delivery and takeout. This type of kitchen does not require a 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 positively. This initiative from government bodies will further increase the number of cloud kitchens and limit the growth of quick service restaurants.

For instance, in October 2023, Indian cloud kitchen startup Curefoods acquired pizza food startup Yumlane. After the acquisition, Yumlane can expand its reach to new markets using Curefoods’ technology. Curefoods has been associated with Yumlane since 2021, after its acquisition of Yumlane Pizza cloud kitchen franchise rights for the South Indian region, followed by a 10% stake in 2022.

In another such instance, Cheesiano Pizza, a fresh pizza brand in India, launched a new burger, ‘Burgerino.’ The brand operates as a cloud kitchen and plans to open physical stores soon. Burgerino is known to offer a fusion of American and Indian flavors that are accepted by millennials.

Quick Service Restaurants Market Segmentation Analysis

By Service Type Analysis

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

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 their hectic schedules or desire 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 in customers. With digital solutions being more prevalent worldwide, the delivery segment is expected to record the highest CAGR during the forecast period.

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By Cuisine Type Analysis

Rising Demand for Hamburgers and American Pizzas Boosts QSR Market Potential

The market, on the basis of cuisine type, is segmented into four sub-segments: American, Italian, Asian, and others.

The American cuisine type segment holds the highest market share due to the dominance of various burger chains, including McDonald’s and Burger King, in almost all the major markets in the world. This includes the U.S., Europe, China, Japan, India, and Australia. Burgers and thick American pizzas are the most consumed fast food items mainly because they are served to the customers quickly and are available at an affordable price than the other fast food items. 

The rapid expansion of fast food chains, such as McDonald’s and Burger King in untapped markets promises lucrative opportunities for the quick service restaurants market growth.

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By Restaurant Type Analysis

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

The market, on the basis of restaurant type, is bifurcated into chained and independent restaurants.

The independent restaurant segment currently dominates the market owing to the ease of setting up a single store and the lower cost needed to run this store. In developing economies such as India, China, ASEAN countries, Mexico, and Brazil, the number of independent QSR outlets surpasses the chain store outlets; however, their revenue is very limited compared to the chain outlets; hence, the share of the chained stores is high.

The chained restaurant segment is expected to record the highest growth rate over the forecast period due to the rapid expansion plans being carried out by chained franchise model-based restaurants, such as Burger King, Domino’s, Yum Brands!, McDonald’s, and Starbucks.

The promising market potential for chained restaurants is due to the ease of doing business in developing markets, which enables the QSR conglomerates to expand into new markets with ease. QSR operators are showing immense interest in expanding their businesses to cater to young consumers in the Asian market, and hence, their expansion plans are mainly focused on these markets. For example, McDonald’s Corporation is planning to open 10,000 more stores worldwide by 2027. The new expansion plan is coupled with the company’s huge investments in advanced technologies that enable it to grow and flourish in untapped markets.

In another example of QSR expansion, in December 2023, Kentucky’s Fried Chicken (KFC) opened its 1,000^th store in India. The brand currently has more than 20 digital smart restaurants in the country and is present in more than 240 cities in India. With the promising economic growth potential of developing Asian countries, the expansion of chained restaurants is expected to speed up in the coming years.

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REGIONAL INSIGHTS

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

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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 restaurant chains. The U.S. is the largest QSR industry due to increasing consumer preference for dining in quick service restaurants. This industry in the U.S. is experiencing an astonishing surge in growth due to the substantial consolidation and acquisition activities going on in the industry. The leading quick service restaurants brands in the country are dynamically intensifying their market reach, attempting to establish closer links with their target consumer base through loyalty programs and tailored marketing ideas. While the QSR industry continues to progress, investors and private equity firms owning QSR brands are meticulously exploring ways to withstand this growth course and expand overall productivity.

The operating costs of companies offering food-related services are rising considerably in the U.S., Canada, and Mexico. 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.

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Asia Pacific is expected to emerge as the fastest-growing region in the global market. The dynamic growth potential of the region mainly depends on the ever-growing population in the region and strong population growth forecast for India, Vietnam, Malaysia, and the Philippines. Millennial consumers in India, Indonesia, Malaysia, China, and South Korea prefer to dine out in quick service restaurants.

The total revenue from QSR sales for Asia Pacific rebounded in 2022 yet fell short of reaching pre-pandemic levels. Majority of the foodservice operators in the region are American chains, such as Starbucks, KFC, McDonald’s, and Pizza Hut. 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 and beverage consumers. Hence, the country is one of the prominent markets in the European Union. The key trends in European quick service restaurants are regional production, convenience, growing demand for Asian & other ethnic cuisines, and health & wellness. The high spending power of customers across Europe will further aid the market’s growth in the region. The European QSR market growth is largely dependent on the arrival of international tourists. After the removal of COVID-19 restrictions, Europe recorded an increase of almost 100% in its international tourist arrival numbers, as per the U.N. data. This factor played a prominent role in stabilizing the European QSR industry, which was hard-hit in 2020 and 2021, with the minimum number of tourist arrivals recorded in both these years.

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 and economically unstable, and it imports most of its food items from other countries. Gulf countries are predicted to record the highest CAGR in the coming years owing to changing lifestyles, rising number of tourists, and huge investments from government authorities to expand the food industry. The major regions and countries that export food items to Africa include the E.U., Brazil, and India. Meanwhile, 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

The market is experiencing significant growth owing to the increased demand for innovative, flavorful, and aesthetically appealing food products among consumers. Hence, key 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’s growth in the coming years.

List of Top Quick Service Restaurants Companies:

• 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:

• August 2023: American sandwich chain Subway entered a definitive agreement to sell its business to the affiliates of Roark Capital. Roark Capital focuses mainly on investments in consumer business service companies, specializing in franchise and franchise-like businesses.


• October 2023: Domino's U.S. announced the Free Emergency Pizza program. The selected members of the program were entitled to a free medium pizza to consume whenever they needed it most.


• December 2023: McDonald's announced its new retro-style restaurant idea, CosMc's, which would operate in the same market segment as Starbucks. The CosMc’s concept is the company’s latest effort to crack the coffee market in the U.S. Through this idea, McDonald’s is expecting to open ten new restaurants by 2024 end.


• 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 has over 1,000 stores in the U.K., with an investment of around USD 35 million. The company will also 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 named “Pizza Hut Melts” is a single-serving pizza best for snacking and eating on the go.

REPORT COVERAGE

An Infographic Representation of Quick-service Restaurants Market

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

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