Limited-service restaurants are expected to witness moderate volume and value growth during the forecast periods, due to the relatively low cost of entry and operational expenses, compared to full-service restaurants. The category will also benefit from innovation and the convenience of such restaurants, helping to negate the effects of a shrinking population, which will naturally reduce the size of the potential consumer base.
Although standard meals, like pizza, hamburgers and chicken remain the most sought-after options in limited-service restaurants, customers are demanding new and unique culinary experiences. While it was once very important to position a limited-service restaurant as specialising in a specific cuisine or type of food, the single-minded focus on a very specific positioning has become much less relevant over the years.
An increased focus on embracing new technologies and services, including self-service kiosks, mobile ordering and wider delivery, can also be expected in limited-service restaurants over the forecast period. Small, independent limited-service restaurants would benefit hugely from teaming up with third party delivery services as this would allow them to scale their foodservice businesses more efficiently and benefit from the delivery companies’ already well-established supply networks and best practices.
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Limited-Service Restaurants
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 definitionsThis report originates from Passport, our Limited-Service Restaurants research and analysis database.
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