Quick Service Restaurant (QSR) Market Size, Share, Growth, and Industry Analysis, By Type (Hardware, Software Service), By Application (Large Consumers, Small Consumers), Regional Insights, and Forecast To 2031

Updated On: 15 April 2024

Quick Service Restaurant (QSR) Market Report Overview

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The global quick service restaurant (QSR) Market size was USD 14190 million in 2021 and is projected to touch USD 27543.2 million by the end of 2031, exhibiting a CAGR of 6.8% during the forecast period.

The Quick Service Restaurant (QSR) market, also known as the fast food or fast-casual restaurant market, is a segment of the foodservice industry that caters to customers seeking convenient and quick meals. QSRs are characterized by their speedy service, affordable prices, and limited or no table service. This market has witnessed substantial growth due to factors like changing consumer lifestyles, increased urbanization, and the rising demand for convenience. As a result, the QSR market has become a significant part of the global foodservice industry. It is highly competitive, with numerous global and regional players competing for market share. Popular QSR chains, operating under franchise models, include McDonald's, Subway, KFC, Burger King, Taco Bell, and Domino's Pizza, among others. These chains offer standardized menus that focus on fast food items such as burgers, sandwiches, pizzas, fried chicken, tacos, and other quick and easily accessible meal options.

Covid 19 Impact

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 rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The Quick Service Restaurant (QSR) market has been significantly impacted by the COVID-19 pandemic. With lockdowns and social distancing measures in place, consumer behavior shifted towards off-premises dining options like takeout, delivery, and drive-thru services. QSR chains swiftly embraced digital transformation, implementing online ordering systems, mobile apps, and delivery partnerships to cater to changing preferences and ensure business continuity. However, operational challenges emerged as QSRs had to navigate strict health and safety protocols, address workforce shortages, and adapt to new working conditions. Menu streamlining and innovation became crucial to optimize operations and reduce costs, while introducing new offerings and promotions to attract customers. As vaccination efforts progress and restrictions ease, the QSR industry is gradually recovering, implementing enhanced safety measures and rebuilding customer trust. The pandemic has showcased the resilience and adaptability of the QSR market as it navigates the challenges and continues to evolve in the face of the new normal.

LATEST TRENDS

"Integration of Sustainability Practices and Eco-Friendly Initiatives"

One of the latest trends in the QSR market is the integration of sustainability practices and eco-friendly initiatives. QSR chains are increasingly adopting renewable energy sources like solar panels and energy-efficient systems to reduce their carbon footprint and lower operational costs. They are also implementing waste reduction and recycling programs, such as composting and reducing single-use plastics, to minimize their environmental impact. Additionally, many QSR brands are sourcing local and organic ingredients to support local farmers, reduce transportation emissions, and meet the growing demand for sustainable and healthier food options.

"Integration of Technology for Enhanced Customer Engagement"

QSR brands are actively integrating technology to enhance customer engagement and create memorable dining experiences. One aspect of this trend is the exploration of augmented reality (AR) and virtual reality (VR) technologies. QSR chains are using AR and VR to provide immersive experiences, such as virtual menus, interactive games, and AR-powered promotions, which enhance customer engagement. Additionally, QSRs are leveraging social media platforms and collaborating with influencers to reach a wider audience, promote their offerings, and engage with customers. This includes interactive social media campaigns, user-generated content, and influencer partnerships. Moreover, QSRs are integrating loyalty programs and mobile wallet functionalities into their apps or digital platforms, enabling customers to earn rewards, receive personalized offers, and make convenient and secure payments, thereby enhancing customer loyalty and convenience.

Quick Service Restaurant (QSR) Market Segmentation

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• By Type

Based on type Quick Service Restaurant (QSR) Market is classified Hardware, Software Service

• By Application

Based on application Quick Service Restaurant (QSR) Market is classified as Large Consumers, Small Consumers

DRIVING FACTORS

"Shift towards Healthier and More Sustainable Options Driven by Health-Consciousness and Environmental Awareness"

Consumers are increasingly prioritizing their health and seeking QSR chains that offer a wide range of healthier menu options, including salads, grilled proteins, plant-based alternatives, and organic ingredients. This shift is influenced by the rising awareness of the importance of healthy eating habits and the desire for sustainable food choices that align with environmental values.

"Convenience and Customization to Cater to Evolving Lifestyles and Dietary Preferences"

 Busy lifestyles have driven consumers to seek QSR chains that provide convenient dining solutions. This includes drive-thru services, mobile ordering apps, and grab-and-go options that accommodate their time constraints. Additionally, consumers are demanding customization options to cater to their specific dietary preferences, such as vegetarian, vegan, gluten-free, or keto choices. QSR chains are responding to these preferences by offering customizable menu items and flexible ordering methods.

"Integration of Advanced Ordering and Payment Systems for Enhanced Customer Experience"

QSR chains are embracing technology to provide a seamless and efficient ordering process. This includes the integration of self-ordering kiosks, touchscreen menus, and mobile apps that allow customers to customize their orders.

RESTRAINING FACTORS

"Market Saturation and Increased Competition"

The QSR market is highly competitive, with numerous global and regional players vying for market share. This intense competition has led to market saturation in many areas, where multiple QSR chains operate in close proximity, creating challenges for new entrants and existing brands to differentiate themselves.

Quick Service Restaurant (QSR) Market Regional Insights

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North America is a highly competitive region for the QSR market, with established chains like McDonald's, Subway, and Burger King originating from the United States. These chains have a strong presence and dominate the market. Emphasis on Convenience and Customization: Consumers in North America value convenience and customization options in their QSR experience. Drive-thru services, mobile ordering, and extensive menu customization are popular trends in this region. There is an increasing demand for healthier menu options in North America. QSR chains have responded by incorporating more nutritious choices, such as salads, grilled proteins, and plant-based alternatives, to cater to health-conscious consumers.

KEY INDUSTRY PLAYERS

"Financial Players to Contribute Towards Expansion of Market"

Financial players, such as private equity firms, venture capitalists, and institutional investors, play a significant role in contributing towards the expansion of the Quick Service Restaurant (QSR) market. These financial players provide the necessary capital and expertise to support QSR chains in their growth and expansion initiatives. Private equity firms often invest in established QSR brands to fuel their expansion plans. They provide the necessary funding for opening new locations, renovating existing stores, and investing in marketing and technology. Additionally, private equity firms bring operational expertise and strategic guidance, helping QSR chains optimize their operations, streamline processes, and drive profitability.

List of Market Players Profiled

• Verifone Systems: San Jose, California
• NCR Corporation: Atlanta, Georgia
• Cognizant: Teaneck, New Jersey
• PAR Technology Corporation: New Hartford, New York
• NEC Display Solutions of America: Itasca, Illinois
• LG: Seoul, South Korea
• Panasonic Corporation: Osaka, Japan
• Oracle Corporation: Redwood City, California
• Delphi Display Systems: Costa Mesa, California
• HM Electronics: Poway, California
• Revel Systems: Atlanta, Georgia
• PAX Technology: Shenzhen, China
• SZZT Electronics: Shenzhen, China
• Shenzhen Xinguodu: Shenzhen, China

REPORT COVERAGE

In conclusion, financial players such as private equity firms, venture capitalists, and institutional investors play a crucial role in supporting the expansion and growth of the Quick Service Restaurant (QSR) market. They provide the necessary capital and expertise to fuel the expansion plans of established QSR brands or support innovative startups in the industry. These financial players not only offer financial backing but also bring operational expertise, strategic guidance, and technological advancements to help QSR chains optimize their operations, enhance customer experiences, and drive profitability. Additionally, the headquarters of various technology and solution providers, such as Verifone Systems, NCR Corporation, Cognizant, and others, are located in different regions globally, reflecting the diverse nature of the QSR market and its reliance on technology to support its growth and development. The collaboration between financial players and QSR chains, along with technological advancements, will continue to shape and expand the QSR market in the future.