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The US foodservice market is projected to register a CAGR of 3.7% during the forecast period (2022-2027).
After the onset of the COVID -19 pandemic, the consumers in the market began to change their dining behavior and practice social distancing, which affected the revenues of the market studied. Various studies have depicted that due to the lockdown effort, foot traffic to fast food and casual dining restaurants decreased by 49% and 61%, respectively. On the contrary, the online delivery services increased by around 42% during this period.
Increased digitalization of food service is among the primary factors driving the market, as consumers find it comfortable to book prior and make payments online. Along with online payments, online deliveries and takeaway systems were much in demand and appealed to the customers.
Fast food restaurants focusing on organic produce and healthy food are expected to be the focus of the market in the future. In the United States, the demand for organic food is rapidly rising. However, factors like rising obesity and health awareness among consumers affect market growth, as most fast food products are unhealthy.
Scope of the Report
The foodservice industry encompasses all of the activities, services, and business functions involved in preparing and serving food to people eating away from home. The scope of the US foodservice market includes segmentation of food service providers in the country by sector types such as full-service restaurant, street stall and kiosk, cafes and bars, self-service restaurant, fast food, and 100% home delivery restaurant. Further segmentation is done based on a foodservice type into independent consumer foodservice and chained consumer foodservice. For each segment, the market sizing and forecasts have been done on the basis of value (in USD billion).
|By Sector Type|
|Full Service Restaurant|
|Street Stall and Kiosk|
|Cafes and Bars|
|Self Service Restaurant|
|100% Home Delivery Restaurant|
|Independent Consumer Foodservice|
|Chained Consumer Foodservice|
Key Market Trends
Fueling Demand for Ethnic Cuisine
The rising popularity of ethnic cuisine is one of the trends sweeping the foodservices sector, driven by the growing number of immigrants entering the United States and the adventurous American palate. The growing popularity of spicy foods in the United States is largely attributable to the surge in immigrants, which is around 26% of the total population, most of whom are Asian population. This growing demographic has introduced a vast assortment of spicy cuisines to American palates, and the market's response has been overwhelmingly positive. The high demand for Pan-Asian cuisine, with a focus on the lighter-than-Chinese fare of Thai, Japanese, and Vietnamese cuisine, is gaining significance in the market. In this scenario, sushi restaurants are gaining popularity, mainly in Los Angeles, Chicago, and San Francisco, where per capita disposable incomes are higher than the national average.
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Increased Consumer Spending on Fast Food
Quick service restaurants (QSRs) are fast food restaurants, set apart from full service or table restaurants by their limited menus, minimal table service, and, as their name implies, fast service. Quick service restaurants include limited-service eating places, cafeterias, fast-food restaurants, beverage bars, ice cream parlors, pizza-delivery establishments, carryout sandwich shops, and carry out service shops with on-premises baking of doughnuts, cookies, and bagels. Contemplating the ease of food consumption in QSRs has led people in the United States to spend in these restaurants, therefore, driving the country's foodservice market. Market giants like Yum! Brands, Starbucks, and Subway are focused on increasing the number of stores in the country and revising their menu with time.
The US foodservice market is a highly competitive market due to the presence of various giant players and local players such as Mcdonald's Corp., Yum! Brands Inc., Starbucks Corp., Inspire Brands, and other companies. The chained consumer foodservice segment is growing rapidly due to the increased investments by international brands. Introducing new exotic flavors and mixes is the strategy adopted by the companies to gain a competitive advantage in the market. According to the latest consumer trend, the introduction of organic food products in this fragmented market is likely to raise the prospects of the companies in the same.
In 2021, Subway recreated its menu to attract a larger customer base. The menu includes new ingredients and breads and the revamped version of old recipes. Cali Fresh Turkey and All American Club Sandwichs were the highlights of this menu.
In 2020, Yum Brands announced the agreement to acquire The Habit Burger Grill, America’s fast-casual concept, for approximately USD 375 million.
In 2020, Starbucks created a plant-based menu consisting of food and beverage with plant-based substitutes for meat and milk. The Impossible Sandwich on the menu was prepared with plant-based sausage, and three varieties of Cold Brew were introduced, made with almond milk and oat milk.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Sector Type
5.1.1 Full Service Restaurant
5.1.2 Street Stall and Kiosk
5.1.3 Cafes and Bars
5.1.4 Self Service Restaurant
5.1.5 Fast Food
5.1.6 100% Home Delivery Restaurant
5.2 By Type
5.2.1 Independent Consumer Foodservice
5.2.2 Chained Consumer Foodservice
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Most Active Companies
6.2 Most Adopted Strategies
6.3 Market Share Analysis
6.4 Company Profiles
6.4.1 McDonald's Corp.
6.4.2 Yum! Brands Inc.
6.4.3 Doctor's Associates Inc.
6.4.4 The Wendy's Company
6.4.5 Restaurant Brands International
6.4.6 Starbucks Corp.
6.4.7 Chipotle Mexican Grill Inc.
6.4.8 Papa John's
6.4.9 Inspire Brands
6.4.10 Domino‘s Pizza Inc.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The United States Foodservice Market market is studied from 2016 - 2027.
What is the growth rate of United States Foodservice Market ?
The United States Foodservice Market is growing at a CAGR of 3.7% over the next 5 years.
Who are the key players in United States Foodservice Market ?
McDonald's Corp., Yum! Brands Inc., Starbucks Corp., Doctor's Associates Inc., Restaurant Brands International are the major companies operating in United States Foodservice Market .