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The quick service restaurants market size is forecast to increase by USD 61.2 billion at a CAGR of 2.1% between 2023 and 2028. In the market, online ordering and customization are key trends driving growth. Consumers increasingly prefer contactless ordering and pick-up options to minimize waiting times and reduce human error. Digital menus and unassisted sales through kiosks and mobile apps are also gaining popularity. However, challenges persist, such as the need for accurate condiment dispensing and maintaining consistent food quality during digital ordering and pick-up. Innovations in packaging and serving of food are essential to ensure customer satisfaction and minimize food waste. Fluctuations in raw material prices also impact the QSR industry, requiring agility and adaptability from players.
Quick service restaurants (QSRs) have undergone significant transformation in recent years, with technology playing a pivotal role in shaping the industry. This evolution has been driven by the increasing demand for cheap food and efficient service, making QSRs a staple in the US food market. The inception of technology in QSRs began with the introduction of digital menus and online ordering systems. These innovations have revolutionized the ordering experience, allowing customers to customize their meals and reduce waiting times. Mobile devices have become an integral part of this process, enabling unassisted sales and real-time stock updates. However, the integration of technology in QSRs is not limited to digital menus and online ordering. Human interaction and customer service remain essential components of the QSR experience. Technology is being used to enhance these aspects, rather than replace them. For instance, human error in taking orders can be minimized with the use of digital ordering systems, allowing staff to focus on providing excellent customer service.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The eat-in service segment is estimated to witness significant growth during the forecast period. The market is experiencing significant growth due to the increasing population of adults aged 25-49 years in the US. With hectic work schedules, QSRs offer a convenient solution for achieving a work-life balance. Consumers seek flexibility and diversity in menu offerings at these establishments.
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The eat-in service segment was the largest segment and was valued at USD 266 billion in 2018. In response, QSR operators are incorporating multi-cuisine dishes to cater to diverse tastes and preferences. This innovation not only attracts new customers but also encourages repeat business. Furthermore, companies offer promotional deals and discounts to enhance the customer experience and identify areas for improvement. In the realm of menu management, the use of paper menus is gradually being replaced by digital, self-ordering kiosks. Hence, such factors are fuelling the growth of this segment during the forecast period.
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North America is estimated to contribute 54% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The North American market is experiencing growth due to several factors. Consumers' preference for convenience and affordability, coupled with brand loyalty, continues to drive the industry. In the US and Canada, the trend of eating out is increasingly popular, leading to an increase in the number of quick service restaurants. This trend is particularly strong in the US and Canada, where foot traffic in restaurant chains is high. Another factor is the availability of a diverse range of cuisines and flavors, which attracts consumers and keeps them coming back. The quick service restaurant sector in North America is thriving, with counter service, takeout, and drive-thru options catering to consumers' needs for low price points and convenience.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Rise in number of quick service restaurants is notably driving the market growth. The market for quick service restaurants (QSRs) is witnessing significant growth due to the ubiquitous demand for efficient service and cheap food options. This trend is particularly noticeable in emerging economies, where the population influx into urban areas and the expanding white-collar workforce are driving the need for convenient and affordable dining options.
The socializing culture at cafes and bars among urban youth is also contributing to the growth of this market. The variety in taste preferences for premium coffee has led to the emergence of specialty coffee shops, with leading chains such as Starbucks expanding their presence in developing economies in Asia and South America. The increasing number of QSRs is expected to continue during the forecast period, making it a staple in the food industry. Thus, such factors are driving the growth of the market during the forecast period.
Innovations in packaging and serving of food is the key trend in the market. Quick Service Restaurants (QSRs) in the US market are leveraging various innovations to enhance the customer experience and boost sales. One such trend is the integration of online ordering systems, allowing customers to customize their meals from the comfort of their homes or offices.
Digital menus have become increasingly popular, providing customers with clear and accurate information about menu items and prices. Another key development in the QSR industry is the use of corrugated packaging for take-out and delivery orders. This type of packaging offers several benefits, including maintaining food temperature and freshness for extended periods. The protective fluting material also prevents spills and releases, ensuring a hassle-free dining experience for customers. However, with the rise of unassisted sales, there are challenges such as human error and waiting times. Thus, such trends will shape the growth of the market during the forecast period.
Fluctuations in raw material prices is the major challenge that affects the growth of the market. Quick service restaurant (QSR) owners face the constant challenge of managing price fluctuations in essential food commodities and raw materials, such as sugar and dairy products, which significantly impact their operations. Sudden increases in commodity prices, often caused by unpredictable weather conditions, can negatively affect profit margins and disrupt production processes, leading to a supply-demand imbalance in the market.
To maintain high standards of food quality and hygiene, QSRs must allocate additional resources. Enhancing the customer experience is crucial in this competitive industry. Integrating mobile devices into the ordering process can streamline the experience, allowing customers to place orders conveniently and efficiently. However, human interaction remains essential for providing excellent customer service and ensuring a positive dining experience. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
American Dairy Queen Corp: The company offers quick service restaurants such as DQ delivers.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The quick service restaurant (QSR) industry has seen an evolution with the integration of technology, making it ubiquitous in the food service sector. With the increasing popularity of cheap food options and efficient service, QSRs have become a staple choice for many consumers. The inception of technology in QSRs began with mobile devices allowing for online ordering and customization, providing customers with a satisfying experience. Restaurant owners have embraced technology to streamline operations and enhance customer service. Digital menus have replaced static signage, offering dynamic updates and extended menus. Self-ordering kiosks have become commonplace, reducing human error and waiting times. Stock updates ensure accurate inventory management and perceived wait times are minimized through digital displays.
Labor costs have been a concern for QSRs, leading to the adoption of contactless self-service and unassisted sales. However, human interaction remains essential for a positive customer experience. Fast-food chains, fast-casual restaurants, and even fine-dining bistros have adopted technology to offer quick food service, from self-service to table service, takeout, and drive-thru. The comprehensive guide to the QSR industry explores the role of technology in enhancing the customer experience, from online ordering to customization and self-service. The speed of service and low price points have made QSRs a preferred choice for consumers, with fast service and counter service catering to the demand for quick and convenient food options.
Market Scope |
|
Report Coverage |
Details |
Page number |
169 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.1% |
Market growth 2024-2028 |
USD 61.2 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
2.1 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 54% |
Key countries |
US, China, Japan, Canada, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
American Dairy Queen Corp., ArmyNavy Burger Inc., BonChon Chicken Philippines, Bounty Agro Ventures Inc., Carls Jr. Restaurants LLC, Chick fil A Inc., Chipotle Mexican Grill Inc., Dominos Pizza Inc., Goldilocks Filipino Cuisine, Honeybee Foods Corp., Jack in the Box Inc., McDonald Corp., Restaurant Brands International Inc., Shakeys Pizza Asia Ventures Inc., Starbucks Corp., The Subway Group, The Wendys Co., and YUM Brands Inc. |
Market dynamics |
Parent market analysis, market report , market forecast , Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Service
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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