(PRNewswire) According to a new report from Radiant Insights, the quick service restaurant market, which may be better known as "fast food", is expected to grow at a compounded annual growth rate of 4.61 percent from 2018 - 2022. The researchers attribute the growth a couple of key factors:
- Changing lifestyles around the world. As the populations of cities grow, the need for quick, convenient, low-cost food is rising.
- The growing number of institutes and airports that welcome these businesses for their convenience. This includes food courts in retail and business centers as well as highway rest areas and airports.
- Rising demand for fast food from consumers in developing countries. As these brands grow in popularity, they create the opportunity for ongoing expansion, especially in India and China.
The report also discussed some significant challenges facing these businesses, including:
- Fluctuations in the cost of raw materials. Not only have food prices increased, but so have packaging materials and cooking necessities like oil.
- Stricter government policy against plastic packaging. This leads to sourcing other, potentially more expensive material options and improving waste removal practices.
The United States and Canada are the major consumer markets, followed by Europe and Asia Pacific. Over the next five years, Asia Pacific is estimated to grow at the highest CAGR. The key players in the market include the Yum! Brands (Taco Bell, KFC, Pizza Hut), Chick-fil-A, The Wendy's Company, Domino's, Subway, Dunkin' Brands Group, Starbucks, McDonald's, and Restaurant Brands International (Burger King, Tim Hortons, Popeyes).