Over the forecast period, limited-service restaurants is expected to record a positive performance across all indicators, with transaction numbers set to fully recover in 2023. The channel will benefit from consumers resuming busy lifestyles outside of the home, or the country welcoming greater numbers of inbound arrivals looking for a quick snack from a recognisable brand.
While slow, the number of new outlets is expected to increase over the course of the forecast period, although there remains the risk of a setback if new waves of the pandemic emerge over the early part of the forecast period. This potential threat along with inflationary pressures could make many consumer foodservice operators reluctant to significantly invest in further expansion or for new operators to enter until the situation stabilises.
The strong health and wellness trend will continue to result in growing demand for healthier food items. Healthier concepts are expected to remain a focus for limited-service restaurants as they attempt to expand their audience of customers concerned about sustainability and animal welfare, with an expanding number of vegan and vegetarian dishes added to their menus.
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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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