Market Trends of Quick-Service Restaurant Industry
Growing Presence of International Fast-Food Restaurants
The market has encountered rapid expansion of global as well as domestic restaurant chains consistently 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, to effectively penetrate its presence in targeted countries. For example, Yum! Brands accounted for 55,361 stores worldwide in 2022, up from a total of 53,424 stores in 2021.
The plant-based meat movement has picked up steam with international quick-service food chains joining on the trend in recent years. For instance, KFC became the first major fast-food chain to add a plant-based chicken product to its menu. In January 2022, KFC added Beyond Fried Chicken nuggets made from plant-based meat to its menu in the United States.
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. International brands, such as McDonald's, and Yum! Ltd continues 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 Feb 2022, Domino's opened its 1500th outlet in India. This vast network of stores and strategic investment in technology has helped Domino's to reduce delivery time further from 30 minutes to 20 minutes. Similarly, 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 of 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 tourist 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 restaurant market in the region.
