Limited-service restaurants offers greater flexibility in terms of adapting to new trends and consumers’ changing demands compared to other channels, which is why it is expected to make a rapid recovery; value sales (at constant 2022 prices) and transaction volumes are expected to fully recover to pre-pandemic levels by 2024. In addition to better adapting to the impact of the pandemic with more established takeaway and delivery services than the full-service format, limited-service restaurants has also been quick respond to consumers’ changing habits or eating trends, including adding innovative, limited-edition items to menus.
Limited-service operators are increasingly investing in technology to offer greater convenience to customers, such as a wider range of payment options and joining delivery services. For example, payments are increasingly digitalised, with customers able to use mobile payment services at both self-order kiosks and counters served by staff across all McDonald’s outlets in Hong Kong.
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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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