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Market Size - Quick Service Restaurant (QSR) industry in the US
The market size in revenue for the Quick Service Restaurant (QSR) industry in the United States is expected to be $233.7 billion in 2017. This figure accounts for around 29% of the expected sales for the whole restaurant industry in the United States ($798.7 billion). Below, I will provide the market size in 2016 and 2017, and trends in 2018 for the QSR industry in the United States.
MARKET SIZE IN 2016 and 2017
According to the National Restaurant Association (NRA), the market size in revenue for the Quick Service Restaurant (QSR) industry in the United States is expected to be $233.7 billion in 2017, a 5.3% increase from the 2016 sales volume of $221.8 billion. The expected 2017 sales for the QSR industry would account for around 29% of the sales for the whole restaurant industry in the United States ($798.7 billion). The QSR industry in the United States is dominated by hamburger fast food restaurants, which accounted for 30% of the total sales. The other segments that made up the top five segments by market share are pizza parlors (15%), sandwich shops (12%), chicken restaurants (8%), and Mexican restaurants (7%). According to Rewards Network, the restaurant industry as a whole in the United States would be experiencing a “flat growth” in 2018.
The NRA is a foodservice trade association that serve their members by “advancing and protecting America’s restaurant and foodservice industry.” Please note that the NRA had placed quick service and fast-casual in the same category and quick service restaurants are also known as limited-service restaurants where “patrons generally order at a cash register or select items from a food bar and pay before they eat.” The NRA report utilized the term “sales,” but it could be assumed that sales of food and beverage in the QSR industry constitute the majority of the revenue generated by the industry.
TRENDS IN 2018
QSR magazine had provided a list of trends that would affect the QSR industry in the United States. Restaurants experts such as founder and CEO of the New England Consulting Group, Gary Stibel believes that the “value war” would grow in 2018. He also expects restaurants to increase the use of technologies for both ordering and pure entertainment to provide customers with a “theater” experience. Customers are expected to continue to seek “healthy, wholesome foods and tasty” food.
The marketing director of Natalie's Orchid Island Juice Company, Natalie Sexton, expects customers to look for beverages are available in “exotic flavors.” The head of content for the Specialty Food Association, Denise Purcell expects more customers to seek foods made with activated charcoal due to their “striking appearances and charcoal's reported association with cleansing and healthy digestion.” Purcell also pointed out the growth in the importance of “food aesthetics.”
The corporate executive chef at McAlister's Deli, Will Eudy expects Jewish deli items to enjoy a resurgence. He also expects diners to seek dishes that “pair spicy flavors with sweet, savory or tangy tastes.” The associate director of foodservice research at Mintel, Amanda Topper believes that speed and innovation are key to attract busy diners. Restaurants are expected to offer more items in smaller portions and snack options to attract the Generation Z who prefer to “grab food whenever it’s convenient, and to accommodate their schedules.”
CONCLUSION
In conclusion, the market size for the QSR industry in the United States is expected to be $233.7 billion in 2017. The top five segments by market share are hamburger fast food restaurants, pizza parlors, sandwich shops, chicken restaurants, and Mexican restaurants.