Limited-service restaurants is expected to continue to see growth in the coming years thanks to a high level of dynamism in commercial and marketing strategies. However, this subcategory is relatively mature, which may limit growth potential.
Looking ahead, it is unlikely that many new outlets will emerge in limited-service restaurants in the short term, given the gloomy economic outlook. Instead, players will continue to attract customers by offering attractive price promotions and investing in efficiency and profitability.
Third-party delivery services will remain highly relevant for limited-service restaurants in the coming years as players seek to boost coverage. However, some third party delivery services are already operating at capacity and are unable to keep up with demand.
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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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