United States Foodservice Market

United States Foodservice Market Outlook 2031

The United States foodservice market size was valued at USD 824.6 Million in 2022 and is likely to reach USD 1.99 Billion by 2031, expanding at a CAGR of 10.3% during the forecast period, 2023–2031. The growth of the market is attributed to rising digitalization of food service, as consumers find it comfortable to book prior and make payments online.

Foodservice is also known as providing food made outside the home, to the public or catering services. There are several companies in the catering business which provide such services. Food services provide packaged food service as well as real-time food service. Foodservice industry in US includes various kind of restaurants such as full-service restaurants, fast food/ quick-service restaurants, limited-service restaurants, and special food service restaurant.

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The growth of commercial spaces like restaurants, café as a place to socialize and spend time with various and innovative food consumption has changed the food consumption habits owing to rising working class consisting of the millennial populations. The adoption of fast lifestyle and exclusion of home-cooking as a part of household activities has increased the demand for ready to eat foods which are non-traditional and mix of different ingredients with different tastes has increased the demand for food services market.

Restaurants and other foodservice providers have been focusing on digitalizing their operations. The rising number consumers adapting to order food online and home delivery system has been the foremost driver for the market. Online platforms to order food for delivery have been successful concepts owing to the ease of choosing food items and convenient payment procedures. Moreover, in 2018, more than 70 million consumers in the United States were engaged in ordering food online from restaurants.

The Covid-19 pandemic had an unpleasant impact on the United States foodservice market. The consumers in the market have begun to change their dining behavior and practice social distancing, which had affected the revenues and the market. The market suffered significant loss; however, the government’s steps and strategies have helped to neutralised the situation. This pandemic has encouraged the key players to implement advance technologies to overcome these challenges and expand the market growth.

United States Foodservice Market Trends, Drivers, Restraints, and Opportunities:

• Increasing digitalization of food service is anticipated to fuel the United States foodservice market.

• Fast food restaurants focusing on organic produce and healthy food and rising demand for fast food in US are expected to drive the market during the forecast period.

• Factors such as health awareness and rising obesity among consumers are likely to impede the market growth.

• R&D investment and technological advancement in the United States foodservice market are expected to offer lucrative opportunities for the market players.

Scope of United States Foodservice Market Report

The report on the United States foodservice market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

United States Foodservice Market Segment Insights

Based on category, the United States foodservice market is segregated into full service restaurant, self service restaurant, fast food, street stall and kiosk, cafe and bar, and 100% home delivery restaurant. The fast food segment is expected to account for a key share of the market during the forecast period.

Quick service or fast food restaurants include cafeterias, limited-service eating places, fast-food restaurants, ice cream parlors, beverage bars, carryout sandwich shops, pizza-delivery establishments and carry out service shops with on-premises baking of cookies, doughnuts, and bagels. Thereby, food consumption has never been so easy and the variety of choices available in the market is likely to propel the market growth.

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Based on structure, the United States foodservice market is divided into independent consumer foodservice and chained consumer foodservice. The Independent consumer foodservice segment accounts for a key share of the market and is estimated to propel even further over the forecast period owing to online food delivery services by restaurants, as well as various platforms.

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Segments

The United States foodservice market has been segmented on the basis of

Category

• Full Service Restaurant
• Self Service Restaurant
• Fast Food
• Street Stall and Kiosk
• Cafe and Bar
• 100% Home Delivery Restaurant

Structure

• Independent Consumer Foodservice
• Chained Consumer Foodservice

Key Companies

• McDonald's Corp.
• Yum! Brands Inc.
• Starbucks Corp.
• Doctor's Associates Inc.
• Restaurant Brands International

Competitive Landscape

Key players competing in the United States foodservice market include McDonald's Corp., Yum! Brands Inc., Starbucks Corp., Doctor's Associates Inc. and Restaurant Brands International. Some of these players are using several market strategies such as mergers, acquisitions, partnerships, collaborations, capacity expansion, and product launches to enhance their market shares. For instances,

• In 2020, Yum Brands declared the agreement to acquire The Habit Burger Grill, America’s fast-casual concept, for approximately USD 375 million.

• In 2019, McDonald's Corporation stated the transition of US McCafe restaurants to 100% sustainably sourced outlets.

• In 2019, Subway relaunched its Ultimate Cheesy Garlic Bread, due to the high demand from consumers. The product was made available in three flavors.