Limited-service restaurants are expected to witness moderate volume and value growth during the forecast periods, due to the relatively low cost of entry and operational expenses, compared to full-service restaurants. Combining an entrepreneurial mindset with adept location selection are important skills when catering to the requirements of budget-conscious consumers who seek quick and economical meal options.
Although standard meals, like pizza, hamburgers and gyros remain the most sought-after options in limited-service restaurants, customers are demanding new and unique culinary experiences. Meals that meet special dietary needs and satisfy the demands of a niche audience are also expected from customers.
App-based platforms operated by third party players will remain a particularly important aspect of the business models of the country’s limited-service restaurants and this is because few players in the channel have the capacity to achieve the economies of scale that are necessary to justify the investment in setting up an app-based in-house ordering system.
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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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