Limited-service restaurants are expected to continue showing robust but slowing current value growth over the forecast period. The category benefits from the fact that outlets generally require fewer employees than full-service restaurants, and there remains a shortage of consumer foodservice employees in Israel since the COVID-19 pandemic.
Significant price hikes are anticipated for the early years of the forecast period. This will largely be due to the increasing price of goods and shipments around the world, underpinned by rising fuel costs, as well as the increase in local taxes.
The forecast period is expected to see chained players, such as McDonalds, Domino’s and Golda's continue to gain a greater share of limited-service restaurants sales at the expense of independent rivals. Moreover, chained limited-service restaurant operators have proven particularly adept at tapping into the shift to home delivery, which has helped to increase consumer awareness of their brands and menus.
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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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