2021
9
US Quick Service Restaurants Market Report 2021
2021-03-20T03:10:19+00:00
OX1044751
3695
135732
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Report
en_GB
“Quick service restaurants stood to benefit the most from the COVID-19 crisis thanks to their affordability and their longstanding investments in drive-thru, takeout and delivery. They’re also viewed as the…

US Quick Service Restaurants Market Report 2021

£ 3,695 (Excl.Tax)

Description

Providing the most comprehensive and up-to-date information and analysis of the U.S Quick Service Restaurants market including the behaviours, preferences and habits of the consumer.

QSRs bounced back from COVID-19 sales losses faster than any of their competitors due to their affordable menus and their unmatched prior investments in drive-thru, takeout and delivery. For many QSR chains, reemergence was a business boon, helping the entire LSR segment recover swiftly and steal market share from FSRs in the interim. To maintain their competitive advantages, QSRs will need to continue to invest in digitally enhanced off-premise services and tend to weaker areas such as treatment of employees and sustainability initiatives.

Quickly understand

  • The impact of COVID-19 on consumer behavior and the QSR market.
  • What the future of the pandemic and recessionary recovery holds for QSRs and their competitors.
  • How QSRs must retain their competitive advantages around speed, convenience and affordability.
  • Considerations to be made regarding fast food brand ethics.

Covered in this report

Terms used: Limited-service restaurants (LSRs), Quick service restaurants (QSRs), Fast casual restaurants and Full-service restaurants (FSRs).

Brands included: McDonald’s, Starbucks Coffee, Chick-fil-A, Taco Bell, Burger King, Subway, Wendy’s, Dunkin’, Domino’s, Pizza Hut, Papa John’s, Wendy’s and more.

Expert analysis from a specialist in the field

Written by Jill Failla, a leading analyst in the Foodservice sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Quick service restaurants stood to benefit the most from the COVID-19 crisis thanks to their affordability and their longstanding investments in drive-thru, takeout and delivery. They’re also viewed as the safest and most convenient meal solution for many American families right now and for the foreseeable future. QSRs will need to continually invest in their off-premise services and their employees in order to prosper in the years ahead.

Jill Failla
Senior Foodservice Analyst

Table of Contents

  1. Overview

    • What you need to know
    • Key issues covered in this Report
    • Definition
    • COVID-19: quick service restaurant market context
  2. Executive Summary

    • Top takeaways
    • Market overview
      • Figure 1: Total US sales and fan chart forecast of limited-service restaurants*, at current prices, 2015-25
    • Impact of COVID-19 on quick service restaurants
      • Figure 2: Short-, medium- and long-term impact of COVID-19 on quick service restaurants, March 2021
    • Opportunities and challenges
    • Fast food recovers fastest from pandemic challenges thanks to safety advantages
      • Figure 3: QSR attitudes – NET agreement, January 2021
    • Digital ordering usage takes off at QSRs, opening up new doors
      • Figure 4: QSR technology experience, February 2020 and January 2021
    • Fast food needs to get even faster to appease Gen Z
      • Figure 5: Factors for choosing a QSR – NET any rank, by generation, January 2021
    • Many Millennials are OK with QSRs ditching the dining room
      • Figure 6: QSR attitudes – NET agreement, by generation, January 2021
    • Fast food brand ethics need improvement
      • Figure 7: QSR attitudes – NET agreement, January 2021
  3. The Market – Key Takeaways

    • LSRs come out of the COVID-19 crisis ahead with a fast recovery
    • Rising food prices and value menu wars are QSR pain points
    • Fast food struggles with less-than-ideal brand ethics perceptions
  4. Market Size and Forecast

    • LSRs set for quick 2021 recovery from COVID-19 sales losses
      • Figure 8: Total US sales and fan chart forecast of limited-service restaurants*, at current prices, 2015-25
      • Figure 9: Total US sales and forecast of limited-service restaurants*, at current prices, 2015-25
    • Impact of COVID-19 on quick service restaurants
      • Figure 10: Short-, medium- and long-term impact of COVID-19 on quick service restaurants, March 2021
    • COVID-19: US context
  5. Market Breakdown

    • Off-premise-focused LSRs steal market share in 2020 and beyond
      • Figure 11: Total US revenues and forecast of restaurants and eating places*, by segment, at current prices, 2015-25
      • Figure 12: Market share of total US sales and forecast of restaurant and eating places*, by segment, 2019-25
    • Fast casual growth outpaces fast food leading into pandemic
      • Figure 13: Percentage share of Top 200 limited-service restaurant sales, by segment, 2017-19*
      • Figure 14: Top 200 limited-service restaurant sales and percentage sales growth by segment, 2017-19*
  6. Market Factors

    • 2021 economic recovery period will benefit QSRs even more than Great Recession recovery
      • Figure 15: Total US quick service restaurant sales, at current prices, 2008-13
    • Ingredient shortages, high prices present QSR challenges
      • Figure 16: Changes in consumer food price indexes, 2019-21
    • Federal minimum wage increase sees ongoing hurdles
  7. Market Opportunities

    • Automated off-premise is the next wave of speed and convenience
    • Walking the walk with racial justice
      • Figure 17: Starbucks’ June 4, 2020, Instagram post
    • Menu bundling, celebrity marketing can prove value
    • Sustainability sells
  8. Companies and Brands – Key Takeaways

    • The pandemic reroutes sales trends for coffee and pizza QSRs
    • QSRs double down on digital and drive-thru, and ditch the dining room
  9. QSR Chain Performance

    • Subway struggles to keep up, Chick-fil-A continues sales boom in 2019
    • The big brand winners and losers of 2019 see similar track records in 2020
    • Coffee QSRs entered 2020 strong, but faltered amid pandemic
    • Pizza QSRs entered 2020 slow but immediately saw big pandemic benefits
      • Figure 18: Leading 10 QSR chains among Top 200 chains, 2018-2019
  10. Competitive Strategies

    • Nostalgic, comfort dishes take over the menu at QSRs
      • Figure 19: Mintel’s Menu Matrix – Top leading entrée menu dishes (1-10) at QSRs, Q3 2017-20
    • 2021: the year of the drive-thru and ditching dining rooms
    • Loyalty programs increasingly drive traffic
      • Figure 20: Wendy’s email “Get 2X points on both poppers,” February 22, 2021
  11. The Consumer – Key Takeaways

    • Fast food chains recover from pandemic sales losses the fastest due to competitive advantages but still have room for improvement
    • Demand for faster, more automated off-premise options is positioned for future growth
    • Digital ordering and loyalty program opportunities shoot up during pandemic
  12. Restaurant Ordering by Segment

    • Fast food sees the fastest pandemic recovery, will continue to gain market share
      • Figure 21: Restaurant ordering by segment, February 2020 and January 2021
  13. QSR Ordering Frequency

    • Fast food is habit-forming
      • Figure 22: QSR ordering frequency, January 2021
    • QSRs and c-stores share the same frequent customers
      • Figure 23: QSR ordering frequency, by Frequent QSR Consumer demographics, January 2021
  14. Factors for Choosing a QSR

    • QSRs should invest in convenience to boost traffic
      • Figure 24: Factors for choosing a QSR – NET any rank, January 2021
    • Gen Z drives the need for speed
      • Figure 25: Factors for choosing a QSR – NET any rank, by generation, January 2021
    • Some parents want the dine-in experience at QSRs for family occasions
      • Figure 26: Factors for choosing a QSR – NET any rank, by parental status, January 2021
  15. QSR Drive-Thru Use, Motivators and Barriers

    • Drive-thru service is a necessity
      • Figure 27: QSR drive-thru use, January 2021
    • Drive-thrus attract new customers outside of core QSR customer base
      • Figure 28: QSR drive-thru use, by select demographics, January 2021
    • Drive-thru sets the safety standard
      • Figure 29: QSR drive-thru motivators, January 2021
    • Help hurried parents with a more streamlined drive-thru experience
      • Figure 30: QSR drive-thru motivators, by parental status and gender, January 2021
    • QSRs must improve drive-thru accuracy and speed to reduce barriers
      • Figure 31: QSR drive-thru barriers, January 2021
  16. QSR Drive-Thru Experience

    • QSRs can improve drive-thru satisfaction via speed and order accuracy
      • Figure 32: QSR drive-thru experience, January 2021
    • Impulsive younger consumers are target audience for drive-thru upsell opportunities
      • Figure 33: QSR drive-thru experience, by generation, January 2021
  17. QSR Technology Experience

    • Preordering technology adoption surges the most due to pandemic
      • Figure 34: QSR technology experience, February 2020 and January 2021
    • Millennials drive growth of most QSR technology
      • Figure 35: QSR technology experience, by generation, January 2021
  18. Desired QSR Improvements

    • Despite taking a backseat during pandemic, sustainability remains important to QSR customers
      • Figure 36: Desired QSR improvements, January 2021
    • Women want faster, safer off-premise options from QSRs
      • Figure 37: Desired QSR improvements, by gender, January 2021
    • Gen Z cares more about chicken and snack items than health at QSRs
      • Figure 38: Desired QSR improvements, by generation, January 2021
  19. QSR Attitudes

    • Loyalty programs are an important visitation driver
      • Figure 39: QSR attitudes – NET agreement, January 2021
    • Cater to Millennials with automated, off-premise-only concepts
      • Figure 40: QSR attitudes – NET agreement part I, by generation, January 2021
      • Figure 41: QSR attitudes – NET agreement part II, by generation, January 2021
    • Dads are key to loyalty program payoff
      • Figure 42: QSR attitudes – NET agreement, by parental status and gender, January 2021
  20. Appendix – Data Sources and Abbreviations

    • Data sources
    • Sales data
    • Forecast methodology
    • Consumer survey data
    • Direct marketing creative
    • Abbreviations and terms
    • Abbreviations
    • Terms
  21. Appendix – The Market

      • Figure 43: Total US sales and forecast of limited-service restaurants*, at inflation-adjusted prices, 2015-25
  22. Appendix – Companies and Brands

    • Mintel Menu Matrix Methodology
  23. Appendix – The Consumer

      • Figure 44: Convenience store visitation frequency, by Heavy C-Store Consumers and demographics, December 2020
      • Figure 45: QSR drive-thru experience, by parental status, January 2021
      • Figure 46: QSR technology experience, by household income, January 2021

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

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*databooks not available with UK B2B Industry reports.

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