US Food Services Market Synopsis

US Food Services Market Size Was Valued at USD 915.56 Billion in 2023 and is Projected to Reach USD 2,347.75 Billion by 2032, Growing at a CAGR of 11.03% From 2024-2032.

Catering or food services pertain to the business of preparing and/or selling food products and/or beverages to consumers. This includes restaurant operations, cafés, catering businesses, food trucks, and institutions, where a business may be involved in serving food such as schools, hospitals, and other similar facilities. The principle objectives of food services are centered towards meal delivery that is appetizing, wholesome, and safe for consumption, something that entails features such as taste, appearance, and customer requirements.

• The US Food Services Market is a vast and highly evolving industry in that it comprises a diverse and elaborate network of undertakings that deals with the preparation of food and delivery of both food and beverages away from the home. This market incorporates different types of options including full-service restaurants, fast food & Quick Service Restaurants (QSR), café, bar, catering services, mobile food services, and institutional food services with examples in schools, hospitals, and workplaces. All the segments meet the specific needs and demands of every consumer, thus range and competition within this industry.
• Another influential aspect of the US food services market is the scale of grocery and its role in impacting the economy. Before the emergence of COVID-19, the market was growing steadily, as there is a tendency for growth in consumption through eating out, socially related changes along the lines of convenience, and the tastes and preferences for different cultures and cuisines. However, there were significant disruptions to the industry due to the virus outbreak such as temporary restaurant shutdowns, limited capacities for dining services, and changes in menu delivery formats to delivery services and takeaway. There are factors mentioned the market for B2C goods and services has proved to be relatively robust market where most of the establishments have been forced to alter their operations and strategies in the aftermath of the coronavirus pandemic.
• In terms of competition, the decade 2000-2010 has witnessed intense competition with many players in the form of both large national chain restaurants, regional players, independent start-up restaurants, and a few specific niche operators. Some major players include; Macdonald, Starbucks, Yum Brands, and the likes of its franchises such as Taco Bell, KFC, and Pizza Hut among others. Most have the advantage of operating at economies of scale together with established brands and aggressive marketing to defend their market niches and viability.
• Industry has also likewise had a great role in influencing the US food services market. Well-established third-party digital ordering services, mobile apps, and third-party delivery services are rapidly gaining popularity as they make consumers’ options more diverse. This has been evident in the recent period due to the COVID-19 pandemic whereby consumers vigorously embraced no-touch solutions in the ordering and payment processes.
• Another aspect that should not be left out in the discussion about the market is its regulatory system. Business laws, labor relations, requirements of health departments, and local ordinances, define how food service providers function. This is important since failure to adhere to these regulations may result in customer dissatisfaction and legal disasters.
• In conclusion, it is possible to identify a few trends or factors that shape further development of the US food services market. The topic of sustainability for instance and concerns about the environmental impact are gaining priority thus encouraging various firms to incorporate measures like sourcing the ingredients locally, minimizing portions of wasted food, and packaging in a safe environmentally friendly manner. Other trends also influence consumers’ choices, for instance, there is increasing consumer interest in healthy food with high levels of nutritional quality, food security, and sustainability.
• In conclusion, the US food services market is a dynamic and opening sector that contributes a significant way to the American economy and culture. Such factors as the current health crisis, COVID-19, and regulatory and legal changes must be factored into the market as it tries to solve challenges to consumer needs. Given the dynamic nature of this particular field, which is usually characterized by continual advances in technology, shifting consumer preferences and legitimate interests, and gradual changes in the general population’s attitudes, the prospects and risks that companies within this realm will encounter are bound to be in a constant state of flux.

US Food Services Market Trend Analysis

Rise of Technology in Food Service Operations

• A well-coordinated technological advancement applied in the food services industry has had a drastic positive impact in the market and profitability of food services in the United States. A point of sale, mobile apps for reservation and food delivery services as well as integration of ordering platforms has brought operational efficiency in minimizing waiting time for orders and minimizing errors. Demand is anticipated with help of artificial intelligence and machine learning for supply, inventory and customers’ preferences that leads to effective utilization of resources and increase in potential revenue.
• Also, innovation in the methods of food preparation through automation and use of robots add to efficiency, comprise less human resource to handle and lower costs of labor. The application of big data helps restaurants to read the climate in the market and understand consumers’ preferences in order to promote different products and services as well as to design different offers of meals. In addition, the usage of mobile money and any type of contactless payment system has helped make transactions easier, riding the wave of the current trend of preferring the ease of tapping or swiping a card instead of physical handling of cash. In sum, while applying the theoretical concepts explored in section 2 of this paper on operations management, one can assert that technology is both a crucial enabler and driver of transformation in the nature and dynamics of food service businesses in the highly competitive market of the United States.

Growing Demand for Healthy and Sustainable Options

• The progress observed in the USA’s food services market shows the important shift owing to increasing consumer demand for healthy and sustainable foods. &This is now altering the industry since the people today care more about their health, the environment, and even the welfare of animals used in production. The food service sector is adapting to the change by increasing options of plant based, organic and locally sourced foods for preparation. It does not only suit the desires of the demand of healthy foods, but it also ensures minimal carbons uptake in the production and delivery of the foods.
•  Furthermore, there is continuing concern from consumers regarding what is in their food and how it is prepared, and a growing emphasis on foods and products with more natural ingredients. Therefore, there are challenges compelling food service providers to maintain a clean roll of sourcing and labeling nutritional information to assist clientele to develop trust within food service providers. The new streak for healthier and sustainable choices instead of the unhealthy and unsustainable ones is not only a tendency at this point but is most probably a trend that is likely to have more influence over the coming years for the US food services market.

US Food Services Market Segment Analysis:

US Food Services Market Segmented based on Type, Outlets, and End-User.

By Type, Quick Service Restaurants segment is expected to dominate the market during the forecast period

• Different types of food services companies research and occupy different areas of the US food services market depending on the consumer experiences they provide. CAFES & BARS are a type of restaurants that offer customers food and drinks, usually non-alcoholic and sometimes alcoholic, along with a comfortable environment to dine and explore social interaction. Cloud Kitchens, a less conventional concept than any other food service models, have emerged and are trending, especially in urban cities, as they are restricted to providing delivery services only and are devoid of any physical restaurant space that aims towards satisfying the orders placed online only. Popularly referred to as all-day/full-service restaurants due to their extensive offerings that include table service/access and variation in food options that are available to consumers, full-service restaurants target consumers who are inclined to have a sit-down meal accompanied by good lighting, presentable interiors, clean and well-presented utensils, and hospitable staff.
• Quick service restaurants (QSRs) are restaurants where customers get their food by facing short delays and without orders being taken and processed through a professional waiter or waitress service, which ensures that they are ideal for clients who need quick lunches or snacks. Each sub-sector in the US food services market has its characteristics and role in providing products to consumers and fulfilling their needs and desires thus making the structure of the sector diversified and competitive.

By Outlets, Independent Outlet segment held the largest share in 2023

• In analyzing the US food services market by outlets, two primary categories emerge: categories of chained outlets and independent outlets. Chained outlets are outlets which are owned by the same person/ company and Centers always have similar menus, interiors and standards across the different outlets. These chains also face buying power, promotional, and market coordination advantages that enhance their bargaining power with customers, pricing strategies and standardization of services from unified market strategies. This situation occurs due to the fact that many segments contain some well-known brands from fast-food chains, casual dining chains, and coffeehouse chains that can be easily identified and found in many areas.
• On the other hand, there are independent outlets with the capacity of being independently managed and owned, they are not subordinate to a major chain or corporation. It ranges from small restaurants to large chain restaurant systems and can have a widely different menu and scope of customers, which frequently has a specific niche, individualized and unconventional approach to the service and the food. Independent outlets could be as small as the diner or a neighborhood bistro or as large as gourmet restaurant chains, food trucks etc with differentiated sense of value propositions holding considerable attraction for consumer preferences along with local taste cultures. This is because while chained outlets will always regulate their market share and influence, the independent outlets offer novelty and customization to the market, which seeks to constantly adapt to the smallest of changes in the target market.

Active Key Players in the US Food Services Market

• Mcdonald's (U.S.)
• Starbucks (U.S.)
• Subway Ip Inc. (U.S.)
• Kfc Corporation (U.S.)
• Burger King (U.S.)
• Dunkin's (U.S.)
• Dominos (U.S.)
• Baskin Robbins (U.S.)
• Wallace (U.S.)
• Popeye's (U.S.)
•  Other Key Players

Key Industry Developments in the US Food Services Market

• October 2022: J.M. Smucker Co. offered their North American customers liquid coffee. The proprietary liquid coffee system efficiently delivers large quantities of premium coffee hygienically, making it the perfect solution for hospitals, universities, hotels, conference centers, and other out-of-home coffee customers.
• May 2022: Chipotle Mexican Grill introduced a new item, 'pollo asado', in the U.S. and Canadian markets. This product comprises grilled chicken, garlic, fresh lime, guajillo peppers and hand-chopped cilantro. This launch helped the company extend its product offerings in those countries.
• August 2021: Peet's Coffee introduced its first line of flavored coffee for home brewing with its new flavored coffee K-Cup pods. The new line features three crafted choices: caramel, vanilla cinnamon, and hazelnut mocha. Such new product launches not only help the company diversify its product portfolio but also help in generating higher profits.
• February 2021: Yum! Brands, Inc. and Beyond Meat, Inc. entered a strategic partnership to sell their plant-based chicken products in the U.S. market. Products such as Beyond Fried Chicken are made available to consumers across KFC, Taco Bell, and Pizza Hut restaurants for a limited time.

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. US FOOD SERVICES MARKET BY TYPE (2016-2030)
   1. US FOOD SERVICES MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. CAFES & BARS
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2016 – 2030F)
      3. Historic And Forecasted Market Size in Volume (2016 – 2030F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. CLOUD KITCHEN
   5. FULL-SERVICE RESTAURANTS
   6. QUICK SERVICE RESTAURANTS
7. US FOOD SERVICES MARKET BY OUTLET (2016-2030)
   1. US FOOD SERVICES MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. CHAINED OUTLETS
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2016 – 2030F)
      3. Historic And Forecasted Market Size in Volume (2016 – 2030F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. INDEPENDENT OUTLETS
8. COMPANY PROFILES AND COMPETITIVE ANALYSIS
   1. COMPETITIVE LANDSCAPE
      1. Competitive Positioning
      2. US FOOD SERVICES Market Share By Manufacturer (2022)
      3. Industry BCG Matrix
      4. Heat Map Analysis
      5. Mergers & Acquisitions
   2. MCDONALD'S (U.S.)
      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. STARBUCKS (U.S.)
   4. SUBWAY IP INC. (U.S.)
   5. KFC CORPORATION (U.S.)
   6. BURGER KING (U.S.)
   7. DUNKIN'S (U.S.)
   8. DOMINOS (U.S.)
   9. BASKIN ROBBINS (U.S.)
   10. WALLACE (U.S.)
   11. POPEYE'S (U.S.)
9. INVESTMENT ANALYSIS
10. ANALYST VIEWPOINT AND CONCLUSION
    1. Recommendations and Concluding Analysis
    2. Potential Market Strategies