Limited-service restaurants will continue to see healthy growth in current value terms (constant 2022 prices) during the forecast period. Growth will be boosted by a return to pre-pandemic lifestyles, including the return of Malaysians to their physical offices, as well as the recovery of inbound tourism, as the country emerges from the shadows of COVID-19.
As in 2022, the key consumer foodservice chains will invest in opening new outlets during the forecast period. First-ranked consumer foodservice player McDonald's, for example, has announced its intention to open 205 new outlets by 2026, mainly in second- and third-tier cities, taking its overall count in Malaysia to 500.
The ongoing health and wellness trend, which has received a boost from the experiences of the pandemic, is expected to exert a considerable influence on the development of limited-service restaurants during the forecast period. This will be facilitated by a shift towards plant-based meat alternatives, which are increasingly perceived as healthier and better for the planet.
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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 Definitions
This report originates from Passport, our Limited-Service Restaurants research and analysis database.
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