Chained Consumer Foodservice Market

Chained Consumer Foodservice Market Outlook (2023-2033)

PMR forecasts the global chained consumer foodservice market to grow from US$ 928.6 Bn in 2023 to US$ 1,279.3 Bn in 2033. This represents a compound annual growth rate (CAGR) of 3.8% from 2023 to 2033.

The technology implementation is allowing the chained consumer foodservice market to grow significantly involving high cost planning in modern facilities and door-to-door food delivery.

Chained Consumer Foodservice Consumption Analysis (2018-2022) Vs. Market Estimations (2023-2033)

During past 5 years (2018-2022), the chained consumer foodservice revenue grew from US$ 768.7 Bn in 2018 to US$ 893.7 Bn in 2022. This represents a compound annual growth rate (CAGR) of 2.9% from 2018-2022.

Chained consumer foodservice relates to the sale of food and drinks for instant consumption, take-away and home delivery. The chained consumer foodservice establishments are divided into two industries: commercial and non-commercial foodservice. The commercial segment accounted for a significant market share. Factors such as the introduction of fresh food products on the menu that is in lined with the changing tastes and preferences of consumers will add to the development of this sector in the coming years. The commercial chained consumer foodservice system is primarily motivated by the high quality of the food provided due its immediate readiness.

Furthermore, increasing consumer awareness of quick-service restaurants is one of the key drivers expected to boost the chained consumer foodservice market's development in the coming years. PMR forecasts the chained consumer foodservice market to expand by 3.8% value CAGR to touch the valuation of US$ 1,279.3 Bn by end of 2033.

What are the Key Trends in the Market for Chained Consumer Foodservice?

“Customization of Food Menus Profiting Market Growth”

The shift towards fresh, innovative, and customized food is proving to be lucrative for the chained consumer foodservice market, especially in the fast-casual foodservice segment. The restaurants and hotels aims to offer tailor-made solution as per the consumer needs.

The "mix-and-match" and "make it for me" trend in several chained consumer foodservice outlets is diversifying from fast food to fine dining and non-commercial locations to all sectors of the chained consumer foodservice industry. Millennials are more interested in visiting restaurants with new or innovative flavors and ingredients than other generations. Thus, the chained consumer foodservice industry is constantly adapting to changing consumer trends in order to grow revenue. Among the industry's most important developments are those linked to healthy food choices, conservation, and the environment, cultural change, and its effect on creativity in cuisine.

“‘Demand for Take-Out Food Benefiting Market Growth”

The demand for take-out food has amplified the chained consumer foodservice market, as modern consumers prefers convenient food and want higher-quality food with more variety than a fast-food restaurant. More than 50% of restaurant operators with average check sizes ranging from US$ 8 to US$ 25 indicated that customers order more take-outs from their restaurants than in the past. Thanks to this growing demand, operators are trying to provide their customers with a convenient take-out experience. Some operators have even created a curbside system, such as Outback Steakhouse, where the customer places an order by phone or e-mail and gives the restaurant his / her license plate number. Moreover, chained consumer foodservice competitors are beginning to adopt self-service kiosks which is achieving key objectives by not only improving speed of service but also enhancing cost-effectiveness.

“Growing Urbanization & Proliferating Middle Class Population”

The chained consumer foodservice market is proliferating due to expanding and diversifying economies powered by a burgeoning population, urbanization, and income growth. A rising middle class has positively impacted the chained consumer foodservice market, since these category of the population are ready to pay for premium food products that is healthier, safer, and has other performance attributes.

The per capita disposable income of households is rising with the recent economic development of several emerging nations, resulting in customers able to spend more money on high-quality food goods at foodservice outlets. The consumer is spending more on products that are rich in nutrition as well as protein, which in turn increases the demand for the chained consumer foodservice market across the globe

“High Real Estate and Labour Costs Affecting Profitability”

During establishment food service outlets, real estate (rentals) is the major cost factor after raw material, accounting for approximately 12-15% (and sometimes even 20%) of total revenue. As a result, productivity is poor, people are paid insufficient wages, and therefore there is a rising need for higher labor costs. In addition, high labor and property costs, coupled with the high property service tax, are putting pressure on store profitability and dissuading food service outlets from growing. Furthermore, the food service industry is continuously struggling with changes related to land quality, land ceilings and the floor space index (FSI), and is also suffering from delays in granting approvals.

Country-wise Insights

Which country holds the highest value share in the Asia chained consumer foodservice market?

In the Asia, China and India remains the foremost-targeted space for foodservice players, owing to large population and growing fast food culture in these countries. China holds the highest value share of above 20% in the Asia chained consumer foodservice market.

What is sales outlook for chained consumer foodservice in the U.S.?

The revenue generated by chained consumer foodservice market in the U.S. is registered at US$ 144.2 Bn for 2023. The market in the U.S. is anticipated to grow by 4.0% in the forthcoming years, owing to high demand for fast food products in the country.

Category-wise Insights

Which type of outlet is most preferred by the consumers across the world?

On the basis of outlet type, the market is segmented into café/bars, full-service restaurants, fast food, 100% home delivery/takeaway, self-service caféterias and street stalls/kiosks.

According to the PMR analysis, full-service restaurants are majorly preferred by the consumers across the globe. The revenue incurred from the full-service restaurants is estimated at US$ 462.4 Bn for 2023 and the sales is anticipated to grow by 3.3% value CAGR in the forthcoming years.

At what rate, fast food service restaurant is growing across the globe?

The growing GEN-Z and young millennials around the globe has led to the rapid expansion fast food restaurant category. As a result, annual growth rate of fast food service restaurant is predicted at 4.9% value CAGR during 2023-2033.

Competitive Dashboard

The chained consumer foodservice industry appears to be mildly fragmented with competitors focusing offering product differentiation to meet the increasing demand for nutritious food among clients. In the highly competitive landscape, the players are aiming on building powerful brands, expanding international business, and focusing on multi-branding to stay competitive in the global market.

The players from Asia regions are focusing on designing restaurant and menu according to the western culture and lifestyle, since in developing regions consumers especially young population are highly influenced by western lifestyle. Apart from this, global players also concentrates on operational efficiency by optimizing supply chain and handling food and labor costs respectively.

• Compass Group PLC continuously looks forward towards improving the food cost, overhead costs to produce working efficiencies and allowing enhance profit margins.
• Starbucks Corporation follows the product line differentiating strategy to increase sales. The company is looking forward to opening its stores in effectively positioned ‘third place’ locations where people can spend time in a relaxed manner.
• Chipotle Mexican Grill Inc. plans to grow the business by leveraging its strengths of great tasting, classic-cooked food made from real ingredients, its compelling value proposition, and a strong new restaurant business unit.
• Restaurant Brands International Inc. continues to explore opportunities to promote the international development of all its brands by creating master franchisees with exclusive development rights as well as joint ventures with new and existing franchisees.
• McDonalds Corp has adopted a market development strategy to expand into growing economies, especially those of Asian countries. The company continues to spread its foot-print in the Asia by establishing restaurants in the Tier-I and Tier-II cities that will expand its sales.

Chained Consumer Foodservice Industry Report Scope

Chained Consumer Foodservice Industry Research by Category

By Outlet Type:

• Cafes/Bars
• Full-service Restaurants
• Fast Food
• 100% Home Delivery/Takeaway
• Self-service Caféterias
• Street Stalls/Kiosks

By Location:

• Standalone
• Retail
• Travel
• Leisure
• Hotels

By Service Type

• Conventional Foodservice
• Ready-Prepared Foodservice
• Commissary Foodservice
• Assembly/
• Serve Foodservice

By Region:

• North America
• Latin America
• Europe
• South Asia & Pacific
• East Asia
• Middle East & Africa

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