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United States of America (USA) Foodservice Market Size and Trends by Profit and Cost Sector Channels, Consumers, Locations, Key Players, and Forecast, 2021-2025

The foodservice profit sector in the US was valued at $578.9 billion in 2020. The market is projected to grow at a CAGR of more than 6% during the period 2021-2025. The decline in the US foodservice profit sector was due to a substantial reduction in the number of transactions in 2020 owing to the COVID 19 pandemic. The period recorded long-term closures of activities and eventually permanent closure of various businesses. However, e-commerce and takeaways played a vital role in mitigating the losses of foodservice businesses.

In the profit sector, quick service restaurants (QSR) was the leading channel in 2020 followed by full-service restaurants (FSR); coffee & tea shop; and pub, club & bar. Education segment dominated the cost sector, followed by military & civil defense; healthcare; and welfare & services. Profit sector channels will see increasing average transaction prices, which will support the growth of the country’s foodservice market.

Overview of the foodservice market in the US

Overview of the foodservice market in the US

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What are the market dynamics in the US foodservice market?

The popularity of cooking at home, online ordering, and meal kits increased due to COVID-19. Lockdown and restrictions on dining in restaurants and eateries forced citizens to take up cooking at home. Although restrictions were eased and foodservice businesses are slowly returning to normal, the fear of COVID-19 infection is discouraging people to visit restaurants and other food joints as much as possible. Ease of restrictions helped foodservice businesses with take-outs and meal deliveries.

Rising health awareness will also keep driving interest in healthier indulgence. Consumers are considering the types of food they need to consume to maintain good health and a strong immune system to protect against the virus.

What are the sector classifications in the US foodservice market?

The foodservice market is segmented into the profit sector and cost sector. The cost sector typically represents the state’s foodservice operators while the profit sector represents the commercial operators. 

Profit Sector: 

Quick service restaurants market in the US

Chain outlets are more prominent in the channel, accounting for a majority of the market. Standalone establishments are most popular among consumers followed by shopping arcades. McDonald’s is the largest quick service restaurant operator, accounting for more than 15% of overall value sales of the channel. Digital platforms will play a crucial role in boosting day-to-day sales revenue of quick service restaurants, to increase the speed of delivery and ensure contactless eating experiences for consumers. 

Full-service restaurants market in the US

The channel is fragmented and dominated by independent operators; however, chain operators occupy a sizeable share. In addition, individual standalone outlets lead the FSR market. The impact on the industry is slated to be long-lasting. However, the channel is expected to record growth during the forecast period. Speedy vaccination rollouts and gradual economic recovery are projected to support dine-in at restaurants frequently. Therefore, the channel is forecast to strongly rebound with substantial growth in both transactions and average transaction value. 

Coffee & tea shop market in the US

The coffee & tea shop channel is relatively consolidated in comparison to others, with chain operators accounting for a majority of the share in the channel and their penetration gradually increasing. The channel is extremely competitive with the two major operators Starbucks and Dunkin’ Donuts making up the majority of sales in 2020.

Pub, club & bar market in the US

The pub, club & bar market in the US, is heavily fragmented. Independent outlets make up a significant share of outlets. The surge in COVID-19 cases in the first half of the year led to the closure of pubs and bars in a bid to curtail the spread of the infection. As a result, the sales value in the channel dropped drastically.

Foodservice market in the US, by profit sector

Foodservice market in the US, by profit sector

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Cost Sector:

Healthcare foodservice market in the US

In the COVID-19 era, foodservice in the healthcare system has been greatly impacted. Although there was an influx of patients during the peak of the COVID-19 pandemic, limited visitors and staff numbers on hospital campuses have brought down foodservice sales in 2020. Now technology in the foodservice will play a major role when the focus is on contactless or minimal contact service. Additionally, buffets and self-serve options will become more prevalent in hospitals. Furthermore, menus will gradually change, and more healthy options are expected to be included in the coming years. These include the addition of gluten-free options, using locally sourced and organic ingredients, and embracing global cuisines.

Education foodservice market in the US

Education is the largest channel in the cost sector, accounting for a significant share of the total foodservice cost sector value. The closure of schools and educational institutions as a preventive measure to curb the spread of COVID-19 led to the decline in the consumption of food in the education channel in 2020. The education sector is expected to remain a top priority for the US government and further legislation related to the quality of school food could have significant effects, not just for players in the channel but the value of the channel as a whole.

Military & civil defense foodservice market in the US

Total military expenditure in the US is the highest in the world by a substantial margin, making the foodservice market is a sizeable opportunity. Growth in the US military and defense foodservice market is expected to remain stable given the national importance of the sector and the country’s commitment to spending a significant proportion of GDP on its armed forces. Key issues for the military and defense channel include good value contracts and a lack of risk in supply. The military has very definite specifications and requirements and, as such, contracts with the US military are commonly at a fixed price, passing more of the risk onto contractors than on the military itself. 

Welfare & services foodservice market in the US

The government is expected to ensure integral human development across all classes of US citizens. Although there was a decline in prisoner numbers as the government let go inmates convicted for misdemeanors and a general decline in crime rate, the number is expected to rise in the post-COVID-19 era. With increasing prisoner numbers, there will be a rise in demand for foodservice. Companies or manufacturers that can offer a better deal and provide healthier, more nutritious food without excessive increases in cost will do well in this market.

Foodservice market in the US, by cost sector

Foodservice market in the US, by cost sector

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Who are the major market players in the foodservice market in the US?

In the QSR channel, McDonald’s Corporation is the leading market player followed by Yum! Brands Inc., Restaurant Brands International, CFA Properties, Inc, and The Wendy’s Company. Darden Restaurants Inc. dominates the FSR channel, which includes players such as Yum! Brands, DineEquity Inc., Brinker International Inc., and Golden Gate Capital. The coffee & tea shop channel comprises players such as Starbucks Corporation and Dunkin’ Brands Group, Inc.

QSR Foodservice market in the US, by key players

QSR Foodservice market in the US, by key players

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Market report scope

Market size of profit sector (Year – 2020) $578.9 billion
Growth rate of profit sector CAGR of >6% from 2021 to 2025
Base year for estimation 2020
Market segments by profit sector Quick Service Restaurants (QSR), Full-Service Restaurants (FSR), Coffee & Tea Shop, and Pub, Club & Bar
Market segments by cost sector Education, Healthcare, Military & Civil Defense, and Welfare & Service
Forecast period 2021-2025
Key players McDonald’s Corporation, Yum! Brands Inc., Restaurant Brands International, CFA Properties, Inc, The Wendy’s Company, Darden Restaurants Inc., DineEquity Inc., Brinker International Inc., Golden Gate Capital, Starbucks Corporation, Dunkin’ Brands Group, Inc., Krispy Kreme Doughnuts Inc, BJ’s Restaurants, Inc, Nord Bay Capital, Darden Restaurants Inc.

This report provides a comprehensive analysis of the foodservice market in the US. 

  • Overview of US’s macro-economic landscape: Detailed analysis of current macro-economic factors and their impact on US’s foodservice market including GDP per capita, consumer price index, population growth, and annual household income distribution.
  • Growth dynamics: In-depth data and forecasts of key channels (QSR, FSR, coffee & tea shops, and pubs, clubs & bars) within US’s foodservice market, including the value of the market, number of transactions, number of outlets, and average transaction price.
  • Customer segmentation: Identify the most important demographic groups, buying habits, and motivations that drive out-of-home meal occasions among segments of the US population.
  • Key players: Overview of market leaders within the four major channels including business descriptions and number of outlets.
  • Case Studies: Learn from examples of recent successes and failures within the US foodservice market.

Reasons to Buy

  • Specific forecasts of the foodservice market over the next five years (2020-2025) will give readers the ability to make informed business decisions through identifying emerging/declining markets.
  • Consumer segmentation detailing the desires of known consumers among all major foodservice channels (QSR, FSR, Coffee & Tea shops, Pubs, Clubs & Bars) will allow readers understand the wants and needs of their target demographics.

Key Players

Domino’s Pizza Inc.

Yum! Brands Inc.

McDonald’s Corporation

Restaurant Brands International

Doctor’s Associates Inc.

Starbucks Corporation

CFA Properties Inc

Dunkin’ Brands Group Inc.

The Wendy’s Company

Doctor’s Associates Inc.

Darden Restaurants Inc.

JAB Holding Company

Roark Capital Group

Chipotle Mexican Grill Inc.

DineEquity Inc.

Table of Contents

Table of Contents

Introduction

Report Guide

Executive Summary

Macroeconomic Context

Macroeconomic Overview

Trends Landscape

Profit Sector – Impact of COVID-19

Profit Sector Metrics

Key metric highlights

Value share and growth by channel

Outlets and transactions growth by channel

Operator buying volumes and growth by channel

Channel historic and future growth dynamics

Outlet type and type of ownership growth dynamics

Profit Sector by Channel

Quick Service Restaurants (QSR)

Summary and key take out

Metrics

Key players

Who?

Why?

What?

Where?

What next?

Full-Service Restaurants (FSR)

Summary and key take out

Metrics

Key players

Who?

Why?

What?

Where?

What next?

Coffee & Tea Shop

Summary and key take out

Metrics

Key players

Who?

Why?

What?

Where?

What next?

Pub, Club & Bar

Summary and key take out

Metrics

Key Players

Who?

Why?

What?

Where?

What next?

Cost Sector Metrics

Cost operator trends historic and future growth

Data and channel share breakdown

Education

Growth dynamics & drivers

Data and channel share breakdown

Healthcare

Growth dynamics & drivers

Data and channel share breakdown

Military & civil defense

Growth dynamics & drivers

Data and channel share breakdown

Welfare & services

Growth dynamics & drivers

Data and channel share breakdown

Appendix

Appendix

Frequently Asked Questions

The foodservice profit sector in the US was valued at $578.9 billion in 2020.

The foodservice profit sector in the US is projected to grow at a CAGR of more than 6% during the period 2021-2025.

Key channels in the US foodservice profit sector include quick service restaurants (QSR), full-service restaurants (FSR), coffee & tea shop, and pub, club & bar.

Key channels in the US foodservice cost sector include education, healthcare, military & civil defense, and welfare & service.

McDonald’s Corporation is the leading player in QSR while Darden Restaurants Inc. dominates the FSR channel. Starbucks Corporation leads the coffee & tea shop channel followed by Dunkin’ Brands Group, Inc. and Krispy Kreme Doughnuts Inc.

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