In 2020, the number of foodservice transactions in independent type outlets (Malaysia) was 3,776.57 Million
The number of foodservice transactions during the period in chain type outlets (Malaysia)was 708.89 Million
The other type of outlets (Malaysia) recorded 1,228.19 Million transactions in 2020
Malaysia foodservice market analysis
Malaysia's foodservice profit sector declined in value sales during 2015 –2020. The closure of restaurants, cafés, bars due to the implementation of an intense lockdown in 2020 led to a fall of sales during 2020, but the growth of transactions via takeaways, delivery services, and drive-thru softened the impact of the pandemic. The profit sector in the Malaysia foodservice market is forecast to recover strongly by recording growth at double-digit CAGR during 2020 –2025 and the growth will be driven by an increasing amount of transactions. Both sales and the number of transactions are expected to grow during 2020 –2025, as the economy is expected to recover from the COVID -19 pandemic. Increasing takeaways and rising demand for dining out will drive the profit sector growth in Malaysia in the coming years. The rising demand for convenience and increasingly busy lifestyles of consumers have increased the demand for virtual restaurants in the country and the food delivery partners like GrabFood and Foodpanda are growing amid the growing demand for deliveries/takeaways from consumers.
Impact of COVID-19
Owing to their fear of contracting COVID-19, Malaysian consumers avoided eating out. Instead, consumers preferred keeping most of their meals homecooked. The frequency of visiting restaurants has declined significantly. While the fear of COVID-19 infection is a major reason, depleted disposable incomes and a rise in unemployment also drove consumers to visit these outlets less frequently. Pub, club & bar channel saw the largest decline in visits as per surveyed, consumers stated that they didn’t visit the channel. Consumers reported that they have stopped visiting spaces that are related to travel, avoiding accommodation and leisure making them the worst hit. Malaysian consumers are extremely/quite concerned about their personal financial situation. Low consumer confidence will be on display in the near future as well, affecting purchase choices. Older consumers are less concerned compared to young, middle-aged consumers (aged between 25 and 44 years old), as young consumers are concerned about their jobs, education, and income, apart from their health, unlike older consumers.
Number of transaction highlights
The full-service restaurant channel led the foodservice industry in terms of the number of transactions in 2020. A large number of transactions in the channel can be attributed to its uniqueness, superior quality, greater service, and wide presence in terms of outlets. During 2015–2020, the channel registered growth, the second-highest among all channels. The QSR channel led in terms of CAGR and the growth was driven by a greater number of value for money items and typically longer operational hours compared to other channels. Even during the forecast period, FSR will register strong growth, while the QSR channel will record a CAGR of single-digit. However, the travel channel will register the largest growth rate during this period.
Transaction: The total number of visits by individuals to foodservice locations that involve the consumption of either food or drink. If several people visit one location at once and there is only one bill, such as a group dining in a restaurant, the number of transactions is counted as being one for each person in the group. If an individual purchases several items in an outlet over the course of a single visit, such as an individual spending an evening in a pub and purchasing several drinks, this is counted as one transaction.
Chain: Chained owner type foodservice operations are those which have multi-unit outlets with a minimum of 10 branded outlets.
Independent: Independent owner type foodservice operations are those that have one or more foodservice outlets or multi-unit outlets but fewer than 10 foodservice outlets. These foodservice outlets are mainly run by family businesses or private partnerships.
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