Full-service restaurants face relatively weak growth prospects in the years ahead, due to the prevalence of lower purchasing power. The cost of living is expected to increase substantially putting pressure on household budgets, which will translate to less frequent eating out occasions.
Cost pressures will prevail in the forecast period as inflation continues to impact on supply chain costs. However, there are other key challenges such as labour shortages that will hit this sector hard as operators struggle to acquire new qualified culinary staff as well as back office and front on house staff.
A commitment to sustainability will become increasingly important for operators as they respond to consumer needs around the environment. Operators will seek out more sustainable ways to lower costs by reducing energy, water and embracing alternative packaging.
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Full-Service Restaurants
FSR (full-service restaurants) encompasses all sit-down establishments where the focus is on food rather than on drink. FSR is characterized by table service and a relatively higher quality of food compared to quick-service units. Menus offer multiple selections and may include breakfast, lunch and dinner. Preparation of food products is often complex and involves multiple steps. NOTE: restaurants types catalogued in this segment refer to table-service only (outlets with a proper “full table service:” wait staff attending customers and taking orders at the tables). Outlets with “limited table service” are excluded from FSR. For example: outlets where customers order their food at the counter are excluded (even though the waiter will then bring the food at the table).
See All of Our DefinitionsThis report originates from Passport, our Full-Service Restaurants research and analysis database.
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