Fast-Food & Quick-Service Restaurants Industry Profile

Companies in this industry operate restaurants in which customers order and pay at a counter. Major companies include Chipotle, McDonald's, Wendy's, and Yum Brands (all based in the US), as well as Café de Coral (Hong Kong), Greggs (UK), Restaurant Brands International (Canada), and Seven & i Food Systems (Japan).

The global fast-food market is forecast to reach about $1.5 trillion by 2032 at a CAGR of about 6% during the 2022-2032 period, according to Spherical Insights. Consumer food service sales are expected to grow most rapidly in Latin America, the Middle East/Africa region, and the Asia/Pacific region.

The US fast-food and quick-service restaurant industry includes about 250,000 establishments with combined annual revenue of about $255 billion. Full-service restaurants and specialty eateries such as coffee shops are covered in separate industry profiles.

COMPETITIVE LANDSCAPE

Demand is driven by consumer tastes and personal income. The profitability of individual companies depends on efficient operations and effective marketing. Large companies have advantages in purchasing, finance, and marketing. Small companies can compete effectively by offering superior food or service. The US industry is highly fragmented: the 50 largest companies account for about 20% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products of limited-service restaurants include meals and snacks prepared without table service (30% of industry revenue), drive-through service (30%), for immediate consumption (20%), and prepared and served meals (5%).

The industry includes national and regional chains, franchises, and independent operators. While the industry ...