Sales of limited-service restaurants will continue to grow over the forecast period therefore it is expected that restaurants that have not yet reached pre-pandemic levels will do so in 2023 in terms of value. However, in terms of transactions the recovery will occur in 2024 for restaurant chains in this category, while independent restaurants are expected to recover pre-pandemic transaction levels in 2025.
Investments in infrastructure in limited-service restaurants will be orientated more towards renovations of some outlets to improve their facilities and offer better facilities to customers, while very few new stores will open. This is mainly because the industry has yet to reach pre-pandemic levels of transactions leading to a prioritisation to dynamize existing stores.
Technology contributed significantly to the digitization of the restaurant business in general. Moreover, in limited-service restaurants, it has been essential to boost delivery service, and in that sense, restaurants will continue to make efforts to implement technology to not only continue to improve their customer service and facilitate their orders through their own websites and apps, but also to implement software that enables them to be more productive and efficient within their operations, and properly integrate customer orders with the processes and internal logistics to meet those orders.
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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.
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