Quick-Service Restaurants Market - Growth, Trends, and Forecasts (2022 - 2027)

Global Quick-Service Restaurants isprojected to register a CAGR of 9.21% during the forecast period, 2022-2027.

Quick-service restaurants are gaining popularity among the consumers, with the influx of global and regional brands, such as KFC, McDonalds, Subway and Domino's.

The market is primarily driven by the increasing frequency of dining out, amid time-pressed schedules and the rising influence of cross-culture dietary patterns, due to the strong presence of international companies. Factors, such as changing demographics of a population, along with the rise of health-conscious millennials and boomers, have given rise to increased demand for food products addressing the health and wellness of the population. Thus, multinational fast-food brands are also expanding their presence in the major countries through aggressive marketing and promotional activities along with innovative menu.

In addition, various countries are experiencing rapid growth in the tourism industry (post COVID-19) which is in turn profitable for international fast-food brands in the country. Moreover, favorable government initiatives are being conducted with an aim to increase the tourism rate. This, in turn, benefits the quick-service restaurants market.

Key Market Trends

Strategic Expansion of Global Brands

The market has encountered rapid expansion of global as well as domestic restaurant chains on a consistent basis over the past years. This has impacted the food service market across the world as deeper penetration of restaurant chains has allowed wider options for the consumer while they go out to eat and adds up to the frequency of the number of times, they visit restaurants.

The rising demand for food prepared by fast food channels has led the market players to expand their outlets for wider service. Yum! Brands, one of the largest food service providers in the world, with popular brands, such as KFC, Pizza Hut, and Taco Bell, is embarking on huge expansion plans across the globe, in order to effectively penetrate its presence in targeted countries. For example, Yum! Brands accounted for 53,424 stores worldwide in 2021, up from the total of 50,353 stores in 2020. Similarly, KFC became the first major fast-food chain to add a plant-based chicken product to its menu.

Asia Pacific is the fastest growing market

The market studied is driven by a rise in value-conscious consumers willing to try new restaurants, with a wide range of menu options, including interesting international and local cuisines.

Changes in lifestyle with the adoption of western culture (including dietary habits) coupled with the increasing out-of-home consumption are mainly attributed to the working-class population. Thus, driving the quick-service restaurants market. Foreign restaurants, such as McDonald's, and Yum! Ltd, continue to expand through franchises, partnerships, or joint ventures with local companies and clubs in order to gain a consumer base and increase its market presence. For instance, in April 2021, Sydney Swans announced a new multi-year partnership with McDonald's Australia which will continue to be their official quick-service restaurant and coffee partner. The new five-year partnership saw McDonald's continuous support to the Club's digital channels and game day experience. This strategy seems to provide better prospects for success, as less effort is required to build brand value among the consumers in the market.

Moreover, Asian countries are among the top tourism destinations across the globe, with the number of tourists increasing every year. Thus, the demand for high-quality food and services has been propelling the quick-service restaurants market in the region.

Competitive Landscape

The market is highly competitive with the presence of key players such as Domino's Pizza, Yum Brands Inc, Doctor's Associates, Inc., and Restaurant Brands International Inc, among others. To give stiff competition to the market players, various restaurants are launching innovative dishes or customized dishes as per the customer requirements, which, in turn, are helping the companies to get a bid in the food service market share. Over the past few years, certain players like KFC, Domino's, Subway, etc., have been expanding their geographical presence across the globe by consistently opening new restaurants as a part of their strategic expansion. For example, in 2022, fast food chain operator Jollibee Foods Corp. opened its 150th store in Vietnam, The new branch is located at 254 Dong Da Street Thuan Phuoc Ward, Hai Chau District, in Da Nang City.

In addition, leading food service providers/brands are focusing on online distribution channels for online marketing and branding of their offerings, in order to expand their geographic reach, as well as customer base.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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