Fast Food Market Synopsis

Fast Food Market Size Was Valued at USD 784.25 Billion in 2023, and is Projected to Reach USD 1220.81 Billion by 2032, Growing at a CAGR of 5.04% From 2024-2032.

One of the food categories with the fastest global growth is fast food. It currently makes up around half of all restaurant sales in industrialised nations, and in the years to come, it will spread to many more industrialised nations as well. However, the developing world is experiencing some of the fastest development, which is drastically altering how people consume. Fast food is inexpensive, simple to prepare, and widely advertised, which is why people buy it.

• The line between traditional cuisine and fast food is not always clear, though. It's challenging to make a quality differentiation in especially because fast food might contain salads and fruit in addition to the traditional selection of hamburgers, hot dogs, sandwiches, patties, French fries, fish and chips, etc. Using formal features is the best technique to differentiate between fast foods. 
• People who consume fast food want to eat quickly and may choose to eat while standing, strolling, sitting on a park bench, or at work. There is typically relatively little choice when it comes to foods and drinks.  Fast food is often referred to as "finger food" since it is often served without knives and forks.
• The big chains are focusing mostly on young customers and have deployed every trick in the book of contemporary marketing. TV commercials, kid-friendly events, presents for young children, and an atmosphere that is generally kid- and teen-friendly are some of the ways they draw in new clients. Big wholesalers, meat and bakery shops, snack bars, and other businesses take advantage of the fast food craze by expanding their take-out menu. It is evident that the traditional family eating culture is being negatively impacted by these ads.

Fast Food Market Trend Analysis

 Increasing Modernism and Preference for Plant-Based Food

• Over time, changes in modernisation and the speed at which society is developing have changed the culinary landscape. Everyone enjoys eating fast food and having conversations about it, even young children and the elderly. The number of women entering the workforce, the rise of nuclear homes, urbanisation, and changing dietary and lifestyle patterns all contributed to a change in children's consumption patterns. Their tastes change faster than those of any other consumer group, especially for teenagers between the ages of 8 and 16. They grow faster and are more direct, knowledgeable, and connected. They possess higher personal authority and have better access to wealth, influence, and attention than prior generations.
• The modern man has a hectic and demanding lifestyle and cannot find the time to cook a nutritious dinner at home, which has led to the rise of the fast-food culture. Nonetheless, several fast-food business owners have opened salad bars, grilled chicken, lean meats, and whole-grain buns in their establishments as an alternative to this. This enables customers who are concerned about their diet to receive wholesome fast meals. While some proprietors of fast-food restaurants are worried about providing their patrons with healthier options, the bulk still cook their cuisine with tonnes of butter and frying oil.
• Fast-food chains have a big influence on consumer trends and norm-setting, so it's important that they incorporate plant-based menu items to help spread the word about plant-based eating. There's a big chance for plant-based products to reach mainstream customers who are trying to cut back on meat, especially when it comes to eating out of the house, which is frequently seen as a special occasion or treat. Major fast-food businesses have the potential to normalise and promote plant-based eating by adopting a plant-based attitude and aiming to attract mainstream consumers. This might have a cascading positive impact on public health and sustainability. This strategy may be the main factor in growing their clientele and increasing the acceptance of plant-based alternatives.

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Source: ProVeg International Incorporated

• With four plant-based main courses, Subway leads the pack among US chains and is the only one to receive points for main courses out of five. The percentage of their major meals that are plant-based is approximately 4%. The Veggie Delite is the basis for all four of the plant-based main courses, therefore there is the lack of variety in the options that are offered. Furthermore, Subway's plant-based main dishes in the US might not be regarded as being on par with other major dishes on the menu when compared to its sister menus in other nations.
• This indicates that the four main dishes that are plant-based do not have a counterpart for the key ingredients included in other main dishes on the menu, like eggs or meat derived from animals. Rather, fresh veggies serve as the foundation for all plant-based main courses. Customers may find it puzzling because plant-based items on Subway's US internet menu are not properly labelled. The Veggie Delite, for instance, is described as "vegetarian" on the menu, but the ingredients list makes it clear that it is plant-based. Customers must visit the item's unique page, read the ingredients list and description, and make note of the ingredients. On its US menu, Subway performs a fantastic job of implementing item integration. This raises the possibility that mainstream consumers will choose a plant-based option by making the plant-based options more visible to them.

Restraints

Rising raw material costs and inflation could cause price increases

• In the past, fast food has always been an affordable choice. This value offer is being challenged, though, by growing expenses. Here is a summary of the causes for the price increases. Rising Input Costs, Due to factors like disruptions in the global supply chain, climate change affecting crops, and the conflict in Ukraine limiting grain exports, the price of goods like meat, dairy, and cooking oils has been rising.
• Wages for fast-food workers are rising due to labour cost increases, increases in the minimum wage, and a tight job market. Restaurants must find a means to cover these expenditures, even though some contend that the increased pay are reasonable. The bottom lines of fast-food businesses are being squeezed by operational expenditures, including rent, rising energy bills, and other expenses. Due to these considerations, fast-food establishments must decide whether to boost menu pricing to preserve profit margins or absorb cost increases and maybe incur a loss. Usually, they choose for the latter, which results in more expensive fast food.

Opportunity

Fast Delivery and Technology Integration

• The fast-food business has seen a significant shift due to the emergence of food delivery applications. Here's how it's causing a boom: Customers no longer need to go to the restaurant because they can now order their preferred fast food with a few taps on their phone. This serves people who prefer to eat in and those with hectic schedules. People who might not have otherwise visited a fast-food establishment are reached by delivery applications. This applies to folks who are in isolated areas, have restricted mobility, or just prefer to stay away from crowds. Research indicates that consumers typically spend more money when placing orders through delivery apps because of things like minimum order requirements and at-home menu browsing. Many clients make more frequent purchases because of the convenience of ordering delivery, which leads to more revenue for fast-food restaurants. Simplifying the Experience of Fast Food.
• To increase productivity, draw in consumers, and customise the experience, fast food restaurants are adopting technology. Online ordering: Guests can place their orders via the restaurant's website or app, frequently with exclusive offers and personalised choices, and avoid standing in line. Self-Selling Points, Customers may use these in-store kiosks to browse menus, place orders, and pay electronically, which cuts down on wait times and the burden for cashiers. To encourage repeat business, loyalty programmes, apps, and digital programmes track purchases and award users with points, discounts, or freebies. Delivery tracking, through apps, clients can follow the progress of their orders in real time, enhancing customer happiness and transparency.

Challenges

Fast Food Chains in Global Market Affected by Health-Related Challenges

• High Obesity and Chronic Illness Rates, Overweight people and chronic diet-related disorders like diabetes and heart disease are becoming more common worldwide. This trend is partially attributed to fast food, which is frequently heavy in sugar, salt, and harmful fats. Fast food restaurants are under pressure to provide healthier options and dispel the myth that their cuisine is unhealthy. Nutritional Transparency, Different countries have different rules about how to disclose information about ingredients and calories. While maintaining transparency regarding the nutritional value of their product, fast food restaurants must manage these variations.
• Different Dietary Limitations, Globally, there is an increase in the prevalence of food allergies, intolerances, and religious dietary restrictions. It is imperative for fast food restaurants to accommodate a wide range of dietary requirements by providing gluten-free, vegetarian, vegan, and other options. Consumption of Sugar: The amount of added sugar in processed meals, particularly numerous fast food items, is a rising source of worry.  Chains are under pressure to lower the amount of sugar in their beverages and other items. Marketing to Children: It is a global concern to market harmful fast food to children.  Fast food restaurants are under increased scrutiny for their advertising strategies and are urged to provide younger consumers healthier options.

Fast Food Market Segment Analysis:

Fast Food market is segmented on the basis of Type, Distribution, Service Type, Application.

By Distribution, Quick Service Restaurant Segment is Expected to Dominate the Market During the Forecast Period

By Distribution, the market is categorized into Full-Service Restaurant, Quick Service Restaurant, Catering, Street Vendors. In Which Quick Service Restaurant Segment is Expected to Dominate the Market During the Forecast Period.

• By Distribution, Quick Service Restaurant Segment Is Expected to Dominate the Market. Quick service restaurants (QSRs) are characterised by their quick service, limited menu options, takeaway service, and usually no table service. The majority offer drive-thru service, and meals are often less than $10.Most historians concur that White Castle opened its doors in 1921, making it the first fast food chain. Americans considered it intriguing back then for much of the same reasons that appeal to them now, the meal was prepared fast and methodically to "fit the tech fascinations of the '20s.”

• QSRs are still quite popular nowadays. Compared to 2021, 27% of consumers said they were eating fast food more frequently in 2022.Furthermore, 45% of customers stated they would order at least some of their Thanksgiving dinner from a restaurant, which is often the largest cooking day of the year. Part of the reason for this could be that, although meal prices at restaurants have gone up, supermarket prices have risen more steadily. The Consumer Price Index Away from Home rose 8.4% between February 2022 and February 2023, while prices at grocery stores jumped 10.2% in the same period.
• Also, QSRs offer additional special potential benefits that enhance their performance in erratic markets. They can, first and foremost, benefit from cost-pass through. Since their products are often less expensive, QSRs can swiftly reorganise menus and change prices more quickly than other merchants. Quick service restaurants (QSRs) can quickly eliminate menu items that aren't selling well, which helps to reduce costs and address supply chain problems.

By Type, Burger/Sandwich Segment Held the Largest Share In 2023

By Type, the market is categorized into Burger/Sandwich, Pizza/Pasta, Chicken Amp., Asian/Latin American food. In which Burger/Sandwich Segment Held the Largest Share In 2023.

• The fast food industry worldwide is dominated by burger and sandwich shops. The reason for this is that sandwiches and burgers are often well-liked by people of all ages, and they're also less expensive than other fast food options like spaghetti or pizza. Burger franchises also have an advantage in serving to clients all day long because many of them provide morning menus. Sandwiches and burgers are always a hit, satisfying a variety of palates. There's something for every taste, including traditional cheeseburgers, chicken sandwiches, and vegetarian selections. In addition, they're frequently thought to offer good value in relation to other fast food options. Important Participants: Wendy's, Chick-fil-A, Burger King, McDonald's, and Subway.
• A large menu selection and online ordering have contributed to the success of burgers. Seasonal preferences don't change, but major businesses like McDonald's, Burger King, and KFC need to maintain consistent quality; value for money and customer service might be enhanced, though. In conclusion, the delicious appeal, ease of use, and flexibility to accommodate shifting consumer preferences are the reasons behind burgers' ongoing popularity. Because of this, they still have a significant impact on the food scene and are a popular choice for people all over the world.

Fast Food Market Regional Insights:

North America is Expected to Dominate the Market Over the Forecast Period

• North America is Expected to Dominate the Market. Fast food is consumed more in the US than in any other nation these days. A National Centre for Health Statistics survey indicates that 36.6% of adult Americans eat fast food daily. Fast food consumption in America appears to be at an all-time high, for whatever reason convenience, growing grocery costs, or brand loyalty. In addition to consumers' increased desire for quick service restaurants (QSRs), some investors can also be hungry for QSRs or fast food.
• The fast-food industry is dominated by North America for several reasons. Historical Development, In the middle of the 20th century, fast food restaurants such as McDonald's, Burger King, and KFC first opened in the United States and soon spread both nationally and worldwide. Cultural Influence, the consumerism and quick-paced lifestyle of American society have greatly impacted international dining trends, such as the inclination for fast food. Franchising Model, American fast-food restaurants, who have embraced the franchise system extensively, have been able to quickly expand both domestically and internationally. This concept has played a significant role in the globalisation of American fast-food firms. Standardisation and Efficiency, Customers searching for quick service, standardised procedures, and easily identifiable brand identities are drawn to American fast-food businesses.

Fast Food Market Active Players

• Auntie Anne’s Franchisor SPV LLC (U.S.A)
• Domino’s Pizza, Inc. (U.S.A)
• Firehouse Restaurant Group, Inc. (U.S.A)
• McDonald’s (U.S.A)
• Pizza Hut (U.S.A)
• Starbucks (U.S.A)
• KFC (U.S.A)
• Taco Bell (U.S.A)
• Subway (U.S.A)
• Burger King (U.S.A)
• Chick-Fil-A (U.S.A)
• Denny’s (U.S.A)
• Wendy’s (U.S.A)
• Popeyes (U.S.A)
• Chili’s (U.S.A)
• Tim Hortons (Canada)
• Café Coffee Day (India)
• Hesburger (Europe)
• Luckin Coffee (China)
• Mixue Ice Cream & Tea (China)
• MOS Burger (Japan)
• Ichibanya (Japan)
• Sukiya (Japan)
• Steers (South Africa)
• Bob’s (Brazil) and Other Active Players.

Key Industry Developments in the Fast Food Market:

• In June 2024, Jack in the Box Announces First-Ever Entry into Georgia, Continuing New Market Momentum with Landmark Development Deal, Bringing 15 Restaurants to the Peach State. SAN DIEGO (BUSINESS WIRE) Jack in the Box Inc. (NASDAQ: JACK), a leading franchisor in the quick-service restaurant industry, today announced a significant development agreement to open 15 new Jack in the Box locations throughout Georgia. This expansion marks the Company's entry into the Peach State and signifies continued dynamic growth for the brand in the Southeastern United States.
•  In June 2024, Starbucks® and Grubhub announced a partnership to bring Grubhub delivery to Starbucks customers in the U.S. Starbucks is the most searched merchant not yet available on Grubhub’s Marketplace, and through this partnership, both brands will provide customers with the ultimate convenience of having their Starbucks orders delivered right to their door.

1. INTRODUCTION
   1. RESEARCH OBJECTIVES
   2. RESEARCH METHODOLOGY
   3. RESEARCH PROCESS
   4. SCOPE AND COVERAGE
      1. Market Definition
      2. Key Questions Answered
   5. MARKET SEGMENTATION
2. EXECUTIVE SUMMARY
3. MARKET OVERVIEW
4. GROWTH OPPORTUNITIES BY SEGMENT
5. MARKET LANDSCAPE
   1. PORTER’S FIVE FORCES ANALYSIS
      1. Bargaining Power of Supplier
      2. Threat Of New Entrants
      3. Threat Of Substitutes
      4. Competitive Rivalry
      5. Bargaining Power Among Buyers
   2. INDUSTRY VALUE CHAIN ANALYSIS
   3. MARKET DYNAMICS
      1. Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   4. MARKET TREND ANALYSIS
   5. REGULATORY LANDSCAPE
   6. PESTLE ANALYSIS
   7. PRICE TREND ANALYSIS
   8. PATENT ANALYSIS
   9. TECHNOLOGY EVALUATION
   10. MARKET IMPACT OF THE RUSSIA-UKRAINE WAR
       1. Geopolitical Market Disruptions
       2. Supply Chain Disruptions
       3. Instability in Emerging Markets
   11. ECOSYSTEM
6. FAST FOOD MARKET BY TYPE (2017-2032)
   1. FAST FOOD MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. BURGER/SANDWICH
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Historic And Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors and Opportunities
      5. Geographic Segmentation Analysis
   4. PIZZA/PASTA
   5. CHICKEN&AMP.
   6. ASIAN/LATIN AMERICAN FOOD
7. FAST FOOD MARKET BY DISTRIBUTION (2017-2032)
   1. FAST FOOD MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. FULL-SERVICE RESTAURANT
      1. Introduction And Market Overview
      2. HISTORIC AND FORECASTED MARKET SIZE IN VALUE (2017-2032F)
      3. Historic And Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. QUICK SERVICE RESTAURANT
   5. CATERING
   6. STREET VENDORS
8. FAST FOOD MARKET BY SERVICE TYPE (2017-2032)
   1. FAST FOOD MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. EAT IN
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Historic And Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. TAKE AWAY
   5. DRIVE THROUGH
   6. HOME DELIVERY
9. FAST FOOD MARKET BY APPLICATION (2017-2032)
   1. FAST FOOD MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. INDEPENDENT
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Historic And Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. CHAIN
10. COMPANY PROFILES AND COMPETITIVE ANALYSIS
    1. COMPETITIVE LANDSCAPE
       1. Competitive Benchmarking
       2. Fast Food Market Share By Manufacturer (2023)
       3. Industry BCG Matrix
       4. Heat Map Analysis
       5. Mergers & Acquisitions
    2. AUNTIE ANNE’S FRANCHISOR SPV LLC (U.S.A)
       1. Company Overview
       2. Key Executives
       3. Company Snapshot
       4. Role of the Company in the Market
       5. Sustainability and Social Responsibility
       6. Operating Business Segments
       7. Product Portfolio
       8. Business Performance (Production Volume, Sales Volume, Sales Margin, Production Capacity, Capacity Utilization Rate)
       9. Key Strategic Moves And Recent Developments
       10. SWOT Analysis
    3. DOMINO’S PIZZA, INC. (U.S.A)
    4. FIREHOUSE RESTAURANT GROUP, INC. (U.S.A)
    5. MCDONALD’S (U.S.A)
    6. PIZZA HUT (U.S.A)
    7. STARBUCKS (U.S.A)
    8. KFC (U.S.A)
    9. TACO BELL (U.S.A)
    10. SUBWAY (U.S.A)
    11. BURGER KING (U.S.A)
    12. CHICK-FIL-A (U.S.A)
    13. DENNY’S (U.S.A)
    14. WENDY’S (U.S.A)
    15. POPEYES (U.S.A)
    16. CHILI’S (U.S.A)
    17. TIM HORTONS (CANADA)
    18. CAFÉ COFFEE DAY (INDIA)
    19. HESBURGER (EUROPE)
    20. LUCKIN COFFEE (CHINA)
    21. MIXUE ICE CREAM & TEA (CHINA)
    22. MOS BURGER (JAPAN)
    23. ICHIBANYA (JAPAN)
    24. SUKIYA (JAPAN)
    25. STEERS (SOUTH AFRICA)
    26. BOB’S (BRAZIL)
11. GLOBAL FAST-FOOD MARKET BY REGION
    1. OVERVIEW
    2. NORTH AMERICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Type
       4. Historic And Forecasted Market Size By Distribution
       5. Historic And Forecasted Market Size By Service Type
       6. Historic And Forecasted Market Size By Application
       7. Historic And Forecasted Market Size By Country
          1. USA
          2. Canada
          3. Mexico
    3. EASTERN EUROPE
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Russia
          2. Bulgaria
          3. The Czech Republic
          4. Hungary
          5. Poland
          6. Romania
          7. Rest Of Eastern Europe
    4. WESTERN EUROPE
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Germany
          2. United Kingdom
          3. France
          4. The Netherlands
          5. Italy
          6. Spain
          7. Rest Of Western Europe
    5. ASIA PACIFIC
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. China
          2. India
          3. Japan
          4. South Korea
          5. Malaysia
          6. Thailand
          7. Vietnam
          8. The Philippines
          9. Australia
          10. New-Zealand
          11. Rest Of APAC
    6. MIDDLE EAST & AFRICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Turkey
          2. Bahrain
          3. Kuwait
          4. Saudi Arabia
          5. Qatar
          6. UAE
          7. Israel
          8. South Africa
    7. SOUTH AMERICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Brazil
          2. Argentina
          3. Rest of South America
12. INVESTMENT ANALYSIS
13. ANALYST VIEWPOINT AND CONCLUSION
    1. Recommendations and Concluding Analysis
    2. Potential Market Strategies