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LSRs Ring Up 53% of Total Foodservice Sales
July 25, 2012
2 Min Read
CHICAGODespite their low-check averages in comparison to full-service restaurants (FSR), limited-service restaurants (LSRs) are emerging as a driving force in the foodservice industry, garnering more than $200 billion of total sales, according to a new report from Technomic.
The commercial foodservice industry was exactly the opposite regarding market share 10 years ago. In 2002, full-service restaurants accounted for 53% of industry sales, while LSRs contributed 47%. Today, LSRs account for 53% of commercial foodservice sales, while full-service restaurants contribute 47%.
Statistics from The Future of LSR: Fast-Foods & Fast-Casual Restaurants Consumer Trend Report" reveal fast-casual restaurants continue to gain market share, while fast-food restaurants are working overtime to upscale their menu and concept positioning to keep pace and compete directly with fast-casual leaders.
The key to LSR growth is differentiation," said Executive Vice President Darren Tristano. Many LSRs that have demonstrated growth have a broad consumer appeal, yet each has a discerned approach. Consumers are looking for fresh, better quality ingredients, a contemporary décor and ambiance, and interactive service formats to offer something unique and enhance the customer experience."
Fast-food patronage thrives on its convenience and value, while food distinction and ambiance are key factors driving patronage at fast-casual locations. Technomic predicts a blurring of the lines" between fast-food and fast-casual restaurants, with operators in each subsegment tweaking concepts with new unit designs and convenient service formats to remain competitive.
Key findings from the report include:
72% of consumers visit fast-food restaurants once a week or more, while 49% visit fast-casual restaurants, partly because there are fewer locations but also because they are more attractive to higher income consumers.
21% of consumers purchase fast-food lunches at least twice a week, and 19% visit fast-casual restaurants, largely due to time pressures.
The incidence of breakfast sandwiches on menus has grown 35% at fast-food restaurants and 29% at fast-casual chains, showing the strength of breakfast entrées at LSRs.
Gluten-free options and the growing importance of better-for-you kids meals continue to guide better-for-you LSR menu development.
The street food craze surrounding bold, ethnic flavors, also has helped LSR menu developers create unique offerings.
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