News

Global QSR industry to grow nearly 5 percent in 5 years

November 26, 2018

Between now and 2022, the quick-service industry will experience a nearly 5 percent compound annual growth rate, according to the latest research  from Radiant Insights Inc. which pinpoints the five-year global QSR CAGR at 4.61 percent due to the increasing need and number of markets where consumers seek this type of restaurant out. 

With no table service, quick and value-based menus, a news release about the company's report said that busy modern lifestyles and the quick growth capabilities of many QSR brands along with prime venues like the growing number of institutes and airports worldwide, consumers in both developed and developing countries globally are demanding this type of restaurant model. 

The report said constraints to QSR growth do exist, however, including fluctuations in raw material prices and increasing governmental policies around the plastic packaging most QSRs depend on. The report said, however, that there is room for creativity in the many types, targets and regions QSR concepts currently occupy in addition to home delivery, dine-in, drive-thru service and takeout concepts. 

The report theorized that market categorization for QSR operators could instead be segmented by the various types of end-users, as well. As far as geographic segments of the QSR business, the research found that North America is now and is expected to continue to be the leader in QSR market share globally simply because U.S. and Canadian consumers gravitate most to quick-service brands. 

Europe and the Asia Pacific are also estimated to have a positive influence on future growth. Europe is the second largest region with significant market share. However, Asia Pacific is estimated to grow at the highest CAGR in the forecast period. Growing urbanization, increasing consumer awareness and growth of concepts in nations like India and China were found to be key contributing factors to growth in that region. 

The key players of the quick service restaurants market are Yum! Brands, Chick-fil-A, The Wendy's Company, Domino's, Subway, Dunkin' Brands Group, Starbucks, McDonald's and Restaurant Brands International. The report said those premier QSR players are focused on inorganic growth to remain successful in a fiercely competitive marketplace.