LSRs now account for 53 percent of the commercial foodservice industry.
Limited-service restaurants (LSRs) are the driving force behind the commercial foodservice industry, according to a new study by Chicago-based Technomic. LSRs accounted for more than half ($200 billion) of total industry sales despite their low check averages in comparison to full-service restaurants.
Ten years ago LSRs made up 47 percent of the total commercial foodservice industry while full-service restaurants (FSRs) made up 53 percent. Now the landscape has reversed; LSRs account for 53 percent and FSRs 47 percent. Within the LSR segment, fast-casual restaurants continue to gain market share while fast-food restaurants are working overtime to upscale their menu and concept positioning — not only to keep pace but to compete directly with fast-casual leaders, according to Technomic's The Future of LSR: Fast-Foods & Fast-Casual Restaurants Consumer Trend Report.
Fast-food patronage thrives on its convenience and value, while food distinction and ambiance are key factors driving patronage at fast-casual locations, according to Technomic. Look for a blurring of the lines between fast-food and fast-casual restaurants, with operators in each subsegment tweaking their concepts with new unit designs and convenient service formats in order to remain competitive.
Other findings from the Technomic study include:
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