Limited-service restaurants in Malaysia are expected to experience a gradual recovery over the forecast period, following war-related boycotts among some consumers, that significantly impacted leading players such as McDonald's, KFC, and Pizza Hut. To attract customers back to their outlets, these brands will implement promotional and discount strategies, including limited-edition meals.
The forecast period is set to see a surge in drive-through limited-service restaurants, driven by increasing consumer demand for convenience. With the availability of online ordering through apps such as McDonald’s McDelivery, customers can order in advance and pick up their meals at drive-through counters, without having to step into physical stores.
Limited-service restaurant players in Malaysia are increasingly prioritising the implementation of self-ordering panels to streamline the ordering and payment process. These systems allow customers to place their orders independently, reducing waiting times and improving operating efficiency.
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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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