Market Trends of north america foodservice Industry
Toronto takes the lead: 758 QSR stores make it the hub of quick service restaurants
- Quick-service restaurant outlets are the most in number; they are expected to register a CAGR of 5.77% over the forecast period. The QSR chains in Canada have been growing despite changing consumer tastes and increasing internal competition. International demand and globalization opportunities allow large-scale operators to expand their footprint into new markets. Toronto is the city with the most QSR outlets in Canada, with 758 stores.
- The expansion of the cloud kitchen market is being driven by the increase in demand for online meal delivery, a desire for international cuisine, and the adoption of tech-savvy ordering systems. Around 49.4% of Canadians have been ordering food online at least once a week after the pandemic. AI is being used to optimize kitchen operations and provide personalized recommendations to customers. Thus, cloud kitchen outlets are expected to register a CAGR of 6.25% over the forecast period.
- FSR outlets are the third fastest-growing in the country, and they are expected to register a CAGR of 5.60% over the forecast period. Canada is a multicultural country, reflected in the international cuisines offered from coast to coast. The immigrant population is also younger than the aging non-immigrant population. In 2021, there were 8.3 million immigrants in Canada. Such factors influence long-term dining trends across the country. British, Thai, Mexican, Middle Eastern, and Lebanese are among the most trending international cuisines in Canada. Therefore, the huge demand for international cuisine enables large-scale, full-service operators to expand their business across the country.
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Full service restaurants rose in the United States in 2022, catering to health-conscious millennials with innovative menus and popular dishes
- In the United States, the average order value was observed as the highest among the full service restaurants in 2022, compared to other foodservice types with a price of USD 39. Chef-driven dining-out restaurants are on the rise as more professionally trained and celebrity chefs focus on benefiting from the growth provided by the FSR. Professionally trained chefs also offer more innovative menus and proprietary recipes to satisfy the needs of the growing taste and health-conscious millennials. Popular dishes offered by the FSR cuisines are Burritos, Chilaquiles, and poke bowls. These cuisines are priced at USD 10, USD 13.5, and USD 17.95, respectively.
- The demand for quick service restaurants is expected to increase due to changes in consumer behavior, people's busy schedules, and growing e-commerce channel penetration. Quick service restaurants are particularly popular with young people since they offer takeaway, home delivery, and many other services to enhance customer experiences and keep up with modernization. With the growing appetite for fast food among American consumers, the average order value for quick service restaurants increased by 16.23% over the study period. In 2022, popular fast food items, including burgers, pizzas, sausages, and meatballs, were priced at USD 8.75, USD 16, USD 8.5, and USD 9.8, respectively. The popularity of chicken in recent years has led American restaurant chains to expand their menu selections. In 2021, 21% of consumers increased their taste for chicken. Thus, many QSR and FSR restaurants include fried chicken in their menus. This consumer demand shift will force operators to compete for the most satisfying offering.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Quick service restaurants are Mexico's most popular dining options, with Burger King, O'Tacos, McDonald's, and Starbucks leading the pack.
- Consumer behavior and demand for burgers, sandwiches, and pizza drive the market in Canada
- The growing popularity of Indian cuisine, the rise in cloud kitchens, and online food delivery driving average order values in the United States
- A wider variety of menu items and upscale dining experiences at full service restaurants in Mexico
