Other limited-service restaurants, dominated primarily by souvlaki shops and restaurants that offer a range of meals during daytime for students and young professionals, is likely to see a decline in the number of outlets in the coming years. The sector is rather saturated and as competition becomes fiercer, many will likely be driven out of business.
While prospects are optimistic both for chained and independent limited-service restaurants, brand name is set to gain importance in ensuring growth. Independent outlets are increasingly investing in marketing activities to build a brand name and, in doing so, are attracting footfall that is not solely reliant on casual walk-ins.
The low operating costs of limited-service restaurants in comparison to other types of restaurants will be key in attracting investment by entrepreneurs wanting to invest in foodservice, especially given the decline of investment in full-service restaurants. The concept of limited-service restaurants fits in well with hectic lifestyles and the on-the-go trend, while consumers increasingly seek to eat healthier.
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Limited-Service Restaurants
Limited-Service Restaurants (LSR) combine fast food and 100% home delivery/takeaway outlets. These outlets offer limited menus with items that can be prepared quickly. Customers typically order, pay, and pick up their order from a counter, though some outlets can have limited table service. This also includes 100% Home Delivery/Takeaway which provide no facilities for consumption on the premises. LSR tend to specialize in one or two main entrees such as hamburgers, pizza, or chicken, but they usually also provide drinks, salads, ice cream, dessert, etc. Food preparation is generally simple and involves one or two steps, allowing for kitchen staffs generally consisting of younger, unskilled workers rather than professional chefs. Other key characteristics include: • A standardised and restricted menu • Tight individual portion control on all ingredients and on the finished product • Individual packaging of each item • Counter service • For Chained Limited Service Restaurants, chained and franchised operations which operate under a uniform fascia and corporate identity • Any outlet offering full-service restaurant seating with servers would be excluded, even if delivery service is available.
See All of Our DefinitionsThis report originates from Passport, our Limited-Service Restaurants research and analysis database.
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