Quick Service Restaurants and Fast Food Market Size, Share, Growth, and Industry Analysis, By Type (Burger and Sandwiches, Pizzas and Pastas, Drinks and Desserts, Chicken and Seafood & Others), By Application (Online Service & Offline Service), and Regional Insights and Forecast to 2032

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QUICK SERVICE RESTAURANTS AND FAST FOOD MARKET OVERVIEW

The Quick Service Restaurants and Fast Food Market size was valued at approximately USD 319.82 billion in 2023 and is expected to reach USD 522.25 billion by 2032, growing at a compound annual growth rate (CAGR) of about 5.60% from 2023 to 2032.

QSRs are special, fast-service restaurants that serve fast food. They usually emphasised on delivering the food in the shortest time possible and the food served often comes with a simple menu. Fast food is the type of food which is made and served almost instantly especially from fast food chains and food kiosks. It is a type of dining that generally incorporates ready-made and presents the meal to the customer in a very short period of time for very busy people.

There are various factors driving the quick service restaurants and fast food market growth such as, increasing urbanisation and busy lifestyles and consumers increasingly seeking fast food and QSRs. An increase is being observed in the upward growth curve by factors including the shift in consumers’ buying behaviours, advancement in technology, and the market’s extensive reach. With a shift in consumer thinking towards healthy and eco-friendly products, the quick-service restaurant and fast-food industry will most likely change its practices by including more items in its menu and some changes.

COVID-19 IMPACT

"Lockdowns and Social Distancing During pandemic Led to Temporary Closure Resulting in Dropped Sales"

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The pandemic brought extended confinement and social distance that precipitated the closure of QSRs and fast food joints. As a result, the human traffic flow, especially for merchant sales diminished, focusing on interior dining services only. A cutback on the provision of indoor seats led to a decrease of consumer sales in many of the QSRs. Consequently, the wings of the sector had to reinvent themselves within the beats of a drum, adopting strategies like delivery, take-away, and online ordering systems. However, despite the above challenges the market started to recover due to a growing demand of the customers for mobile and contactless services.

LATEST TREND

"Significant Shift Toward Healthier Fast Food Options to Drive Market Growth"

One notable development in the market of fast-food and quick-service restaurants is the increasing popularity of healthier options in the menu. Nutrition and health orienting consumers are also out for healthy and tasty meals. In response to this trend, fast food restaurants have started offering plant-based products, low-calorie dishes, gluten-free varieties and so on. Concerning healthy options, this is equally followed up by fast food restaurants, where their menus are inclusive of such, thereby enhancing the growth of the market and reaching more consumers. This trend is predicted, however, since more people are looking for healthier foods nowadays.

QUICK SERVICE RESTAURANTS AND FAST FOOD MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Burger and Sandwiches, Pizzas and Pastas, Drinks and Desserts, Chicken and Seafood & Others

• Burger and Sandwiches: It encompasses a wide variety of burger and sandwich options that are usually available with a side of fries and drinks. It is one of the biggest portions of the quick service and fast food industry, fueled by the popularity of burger and sandwich chain stores.

• Pizzas and Pastas: Fast food pizzas and pastas provide an excellent variety of flavours. This category has particularly appealed to consumers who fancy quick and easily adjustable meals such as eating pizzas, pasta dishes or even baked pasta.

• Drinks and Desserts: This serves a variety of chilled drinks such as soft drinks, milk shakes, smoothies, coffee and even affords desserts like ice cream, cakes, or cookies. Mosts fast food eateries also typically offer the enhancement of desserts and drinks to appeal to the customers with the meals.

• Chicken and Seafood: Fast food chicken and seafood offerings include fried chicken, grilled chicken, chicken nuggets, and seafood options like fish sandwiches, shrimp, and other seafood preparations.

• Others: This category covers a variety of other fast food offerings like salads, wraps, and ethnic fast foods. It also includes newer trends like plant-based or vegetarian fast food options catering to changing dietary preferences.

By Application

Based on application, the global market can be categorized into Online Service & Offline Service

• Online Service: The online service segment consists of all the digital orders placed through websites, mobile applications as well as any delivery apps. Such preferences for seeking convenience are the motivating factors behind the popularity of online ordering, especially after the COVID-19 Pandemic.

• Offline Service: The offline service segment comprises typical in-store dining or walk-in orders offered at fast food chains and QSRs. Although there is an increase in online orders, short service restaurant segments have not lost their appeal for those customers who prefer eating in or using drive-thrus.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

"Increasing Urbanisation and Busy Lifestyles to Boost the Market"

A factor in the quick service restaurants and fast food market growth is the increasing urbanisation and busy lifestyles. With the population shifting to urbanism, the need for accessible, fast and cheap food is increasing. Fast food is usually preferred by working adults, students or anyone living within the urban centre. As more and more people scramble for jobs around the world, allowing little or no time for cooking, fast food chains and quick service restaurants have become very common, leading to growth in the market.

"Consumers Increasingly Seek Fast Food and QSRs to Expand the Market"

The consumers increasingly seek fast food and QSRs is another key aspect of the quick service restaurants and fast food market. With increasing workloads, people are in search of quick, ready-made, and most importantly, inexpensive meals. Restaurants and fast food outlets provide a variety of meals with differing aspects and food preferences, which is why many people eat out. The provision of a drive-through, delivery system and the online ordering option increased the level of convenience thereby bringing in more customers and facilitating growth of the market.

Restraining Factor

"High Competition from Established Brands to Potentially Impede Market Growth"

A restraining element within the growth of the quick service restaurants and fast food market is the high competition from established brands. The absence of distance, as cut-throat competition is prevailing in almost all the markets today making it difficult for new or smaller entrants to gain market share as the major players have already established strong brand recognition, large operations, and substantial marketing expenditures. The high level of competition, breeds price wars, wars of innovation, and wars for customer loyalty making it hard for new brands to stand out and grow.

Opportunity

"Use of AI, Digital Ordering, and Autonomous Delivery Systems To Create Opportunity for the Product in the Market"

The application of artificial intelligence, the ability to place orders digitally, and an effective system of autonomous delivery presents a major growth potential in the Quick Service Restaurants and fast-food sector. Through AI, customers can enjoy ordering and delivery efficiency targeted at enhancing service delivery. Mobile applications and website digital orders are more user-friendly and ease placing orders. Drones and unmanned vehicles as delivery systems increase the efficiency of deliveries and lower operational costs. Such developments are not only in line with the changing trends by consumers seeking convenience but also act as a market growth strategy.

Challenge

"Health Concerns Including Obesity and Cardiovascular Diseases Could Be a Potential Challenge for Consumers"

Proliferation of dependency on fast food and Quick Service Restaurants (QSR) industries has gravitated towards varying health challenges such as obesity and heart diseases which is a problem for the consumers. With knowledge about the dangers of the unhealthy diet on the rise, several of the consumers are becoming more aware of what they purchase and consume. Processed and fast foods, that are full of fats, salts, excess sugars and other constituents are indeed a threat to such a situation and make the consumers adopt healthier eating habits. Such changes in the attitudes of the consumers may pose a challenge to the growth of the traditional fast food restaurants hence making them resort to new means such as healthy eating options to solve the problem.

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QUICK SERVICE RESTAURANTS AND FAST FOOD MARKET REGIONAL INSIGHTS

• North America

The market for Enterprises in Quick Service Restaurants (QSR) and Fast-food outlet management systems is dominated by the North American region. The United States Quick Service Restaurants and Fast Food Market region hosts a few of the world’s biggest fast-food companies including McDonald’s, Subway, and Taco Bell among others. The Convenience Culture in America has made the population embrace and order more food via apps with a purpose of delivery. However, the youth aged twenty-nine and below are especially health cautious compelling QSRs to re-innovate their menus with healthier options. Furthermore, several delivery apps and a multitude of drive-thrus continue to aid the market growth.

• Europe

Europe is witnessing a constant increase in the QSR and fast food market due to urbanisation, busy schedules and the need for on-the-go meals. The markets in the growth of the market include the United Kingdom, France and Germany. Given the rising health consciousness within the region, the availability of healthy fast food alternatives such as all vegetables and organic foods is increasing in the European market. There is also an upsurge in the activity trends that involve ordering food over the Internet and having it delivered to one’s home. All these play a significant role in the growth of the market in the region.

• Asia

The increase in QSR and fast food industry development is even faster in Asia because of the changes in the consumers’ way of living, the rise in urbanisation, and the growing proportion of the middle-income earners. Countries like China, India, Japan, and South Korea are of importance to the growth of the market. Increases in the consumption of fast food in these regions are influenced by busy schedules, growing disposable incomes, and an inclination towards western eating habits. Fast food delivery chains are also leveraging technology because of the increasing use of digital ordering and delivery platforms.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

Operators in the fast-food and Quick Service Restaurants (QSR) segment have adopted innovation and market expansion as some of the key growth strategies. Today, the leading brands are utilising high technology amenities like an AI ordering machine and personalised marketing to enhance customers’ experience. These organisations also enhance their geographical reach by establishing new chains and modifying the menu to local preferences. Even more evidence of their adaptability to changing needs of consumers, which is helping raise their power and the development of the market in future, is healthier choices, plant based foods, green packaging, etc. added into their sector.

List of Top Quick Service Restaurants And Fast Food Companies

• Jack in the Box (U.S.)
• Chipotle Mexican Grill (U.S.)
• Kotipizza Group Oyj (Finland)
• Restaurant Brands International Inc (Canada)
• Del Taco Restaurants, Inc. (U.S.)
• Ark Restaurants Corp. (U.S.)
• McDonald's (U.S.)
• Darden Concepts, Inc. (U.S.)
• Pizza Hut India (India)
• Carrols Restaurant Group, Inc., (U.S.)
• Burger King Corporation (U.S.)
• Subway IP LLC (U.S.)

KEY INDUSTRY DEVELOPMENT

2023: Jubilant FoodWorks announced that they plan to open 250 additional Domino’s restaurants and 40-50 additional Popeye’s restaurants in India over the next 12 to 18 months, a move which will be financed with a considerable investment from their books worth INR 900 crore. The initiative, ads aimed at expanding the reach of the company in the market, is also expected to respond with the rising demand for fast food in the region.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The quick service restaurants and fast food market is poised for a continued boom pushed by increasing urbanisation and busy lifestyles and consumers increasingly seeking fast food and QSRs. Despite challenges, which include a number of health problems such as obesity and heart-related diseases which is a challenge for the consumers. Key industry players are advancing via technological upgrades and strategic marketplace growth, enhancing the supply and attraction of quick service restaurants and fast food. As customer choices shift towards healthier and numerous meal options, the quick service restaurants and fast food market is expected to thrive, with persistent innovation and a broader reputation fueling its destiny prospects.