The global quick-service restaurants market size is set to undergo dynamic growth on account of the increasing utilization of artificial intelligence (AI) by fast-food chains, observes Fortune Business Insights™ in its report, titled “Quick-service Restaurants Market Size, Share and Industry Analysis, By Service Type (Eat-in, Takeaway, Drive-Through, Home Delivery) and Regional Forecast, 2020-2027”. To manage the huge daily demand volume, fast-food behemoths such as Starbucks and Dominos are leveraging the powers of smart technologies such as AI and machine learning. For example, in 2019, McDonald’s acquired Dynamic Yield, a company that specializes in developing intelligent and interactive display boards. Following this takeover, McDonald’s also purchased Apprente and using the expertise of these two companies, the burger giant will implement AI-based voice technology to take orders in its drive-through settings. Starbucks has developed its own AI system called Deep Brew that not only manages inventory but also optimizes labor efforts. The deployment of this system increased the coffee giant’s sales by 6% in 2019 as the AI freed employees to interact with customers and cater to their needs in a more efficient manner, raising overall customer satisfaction. The integration of AI-powered tools by quick-service restaurants is thus broadening the outlook of this market.
What Does This Report Offer?
- Well-researched projections of the upcoming market opportunities;
- In-depth analysis of the market drivers, trends, and constraints;
- Detailed examination of the regional prospects and competitive developments influencing the market; and
- Granular evaluation of all possible market segments.
Declining Sales amid COVID-19 to Stagnate Market Growth
The COVID-19 pandemic outbreak has created unprecedented upheavals in the restaurant industry, with quick-service restaurants facing sharp drop in sales throughout the year. For example, in June 2020, McDonald’s a revenue decline of 30.5%, standing at USD 3.76 billion and net income contracted to USD 483.8 million compared to USD 1.52 billion in 2019. While the company’s US sales rose by 4.6% in October, the overall sales fell by 2.2% as the revenues were unable to offset the shortfalls experienced by the company in major markets such as France, the UK, and India. Similarly, Starbucks announced in June that it expected its operating income to shrink by up to USD 2.2 billion along with a steep dip in overall sales for 2020. The primary reasons for these startling numbers are the nationwide lockdowns and strict social distancing rules imposed in several countries to contain the spread of the coronavirus. The quick-service restaurants market growth is likely to suffer as a result of these developments.
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Widespread Consumption of Fast Foods to Aid the North America Market
Fast food as a concept was heavily popularized by the US through movies and TV shows, leading to massive consumption of these food items across the country. Besides this, high disposable incomes and a strong presence of fast food chains in the region will aid North America’s dominance in the quick-service restaurants market share in the foreseeable future.
In Europe, quick-service franchises are incorporating vegan-based offerings in their menus to cater to the region’s rapidly expanding vegan population, which is boding well for the market. The market in Asia Pacific is looking at a bright future owing to the soaring popularity of fast foods, increasing adoption of dine-out culture, online food retailing, growing young populations, and speedy expansion of urban areas.
Creative Advertisements by Key Players to Animate Market Competition
In a bid to grab the attention of conscious consumers, key players in this market are launching innovative advertisements to showcase their evolving offerings’ range. Besides this, companies have been partnering with other organizations to meet the diverse needs of consumers during the coronavirus pandemic.
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- April 2020: Domino’s Pizza joined forces with ITC Foods, an FMCG major in India, to help deliver daily essential groceries to customers as the country underwent a lockdown to contain the virus spread. The service was started in Bengaluru and was later extended to Hyderabad, Chennai, Kolkata, Mumbai, and Noida.
- February 2020: Burger King unveiled an interesting ad campaign that showed its iconic Whopper burger covered in mold. Through this campaign, the burger giant wanted to portray the horrible effects of adding artificial preservatives, which the company has successfully eliminated from its Whopper burger.
List of Key Players Covered in the Quick-service Restaurants Market Report:
- Yum! Brands, Inc.
- Restaurant Brands International Inc.
- Starbucks Corporation
- Burger King
- Wendy’s Company
- McDonald’s Corporation
- Dunkin Brands Group
- Domino’s Pizza, Inc.
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