Limited-service restaurants in the US is set to maintain solid retail current value growth rates throughout the forecast period, with chicken limited-service restaurants expected to continue to see the strongest growth. Menu innovation is likely to remain an important element of limited-service restaurants in the US.
One of the biggest stories of 2024 was the coming into effect of California’s minimum wage increase. Much ink has been spilled about how the increase in the minimum wage for limited-service restaurant operators with more than 60 locations could drastically harm various parties throughout the state.
Delivery continues to gain as a fulfilment method in the US on the whole. Third-party online delivery is comfortably the fastest growing fulfilment method, with first-party fulfilment remaining an important component of the broader picture, and growing the second fastest of all fulfilment methods.
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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.
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