With the rising cost of living, consumer budgets are expected to tighten, and typically one of the first things to go are expensive nights dining out. Rather, consumers are likely to swap the more higher end restaurants for cheaper alternatives, usually chained outlets like McDonalds or Dominos.
It is has become an essential part of a brand’s corporate social responsibility to focus on sustainability and find ways of contributing to the effort of reducing carbon emissions and supporting worthwhile social causes. The ban on the use of single-use plastics will go a long way to this cause, however this was a government mandated move.
Many chains have already integrated some form of automation such a self-service ordering kiosk or ordering through a mobile app before collecting from the restaurant. These channels existed before the pandemic, but health concerns raised during COVID-19 led them to become more mainstream.
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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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