News

Report: The next 5 years in quick-service

December 27, 2017

Change-makers in the coming QSR industry include a growing demand for home-cooked food and a wave of innovations in food packaging that brands can put to use in their service. Those are two findings from research company, Technavio, included in their latest report, Quick Service Restaurants Market in the U.S. 2017-2021.

Over that same five-year time period, the company said in a news release that it's forecasting steady growth in the U.S. QSR sector, including a CAGR of 3.03 percent. Packaging innovation, more nutritious menu offerings and a waning use of additives in food served will also boost growth in this sector, the release said. 

Big influencing factors include customers' growing expectation for food customization options to suit their tastes and diet. Likewise, the demand for on-the-go food is not going anywhere, rather will contribute "significantly" to market growth between now and 2021.

Top challenges for QSR operators revolve around the price fluctuations and overall financial uncertainty about heavily used ingredients like sugar, meat and dairy products, the release said. 

Technavio sees five key vendors in the quick-service game over the next four years, which the release lists in this order:

• Chick-fil-A
• Domino's Pizza
• McDonald's
• Restaurant Brands International
• Subway

Some of the other brands expected to play important roles in the sector's evolution by 2021, include brands like Arby's, Del Taco, White Castle and Jack in the Box, along with Little Caesar's, Papa John's and Telepizza. 

As far as forces driving the market's growth, it’s all about customer, vendor and brand creativity and innovation revolving around new ways for diners to customize their choices and new ways for restaurateurs to boost business. Food packaging innovations will be chief among those innovations, though consumers' growing love of home-cooked meals will pose challenges for this restaurant sector, the company said.