United States Food Service Market

United States Food Service Market Size, Share, Growth (2023-2028)

United States Food Service Market is foreseen to register moderate growth to record a CAGR of about 4% during the forecast period(2023-2028)

United States Food Service Market Overview

Food service defines the companies, institutions and businesses responsible for any food prepared outside the home. This market contains school and hospital cafeterias, restaurant operations, and restaurants, many other formats. Companies that provide food operator services are called food service distributors. Food service distributors sell products such as small items (kitchen utensils) and food. Certain companies manufacture consumer and restaurant version products. The consumer version is generally supplied in individual-size packages with an elaborate label design for retail. The catering version can be packaged in a larger size and often lacks the labels of the consumer version.

Recent Developments

1. In January 2020, a distributor of disposable catering and cleaning supplies, Imperial Dade, confirmed the procurement of Wagner Supply Company. This deal strengthens Imperial Dade's presence in Texas even though enhancing the company's differentiated value proposition for customers in the area.

2. In March 2020, US Foods is getting big with cash and transportation. It announced an agreement to acquire Smart Foodservice Warehouse Stores, which operates 70 small cash and transportation stores in many states. The stores, currently owned by private equity group Apollo Global Management, serving small and medium restaurants and other food customers with a wide variety of products.

3. In March 2020, NEOGEN Corporation announced that it has purchased the assets of Chilean company Magiar Chilena, a distributor of diagnostic products for food, animals and plants, along with NEOGEN products.

United States Food Service Market Drivers and Restraints:

One of the main factors driving the US food service market is the increased digitization of food services, as consumers prefer to book earlier and make payments online. Fast food restaurants focused on organic products and healthy foods should be the target of the market in the future. In the United States of America, the call for organic food is expanding rapidly. Quick-service restaurants (QSRs) are increasing in the nation, which in general, are fast-food restaurants that are not regular table restaurants due to their simple menus, less service, and as the name suggests, has the quick service. QSRs are increasingly popular in the United States and there are about 194,723 such QSRs in 2018. Fast food restaurants include limited service locations, coffee shops, fast food restaurants, drink bars, ice cream parlors, pizza delivery, takeout sandwich shops, and service workshops with baked donuts, cookies, and bagels on site. The contemplation of the ease of consumption of food in the QSR has led the American population to spend in these restaurants, which stimulates the country's food service market. However, factors such as increasing obesity and consumer health awareness are affecting the growth of the market, as most fast food products are unhealthy.

United States Food Service Market Segmentation:

By Place Type

• Full Service Restaurants

• Quick Service Restaurants

• Food Junctions Cafeterias/buffets

• Bars and Managed Food Service

By end-user

• Industrial Premises

• Commercial and Office Premises

• Hospital & Nursing Homes

• Educational Premises (Colleges, Universities, Schools)

• In-transit Food Service (Airlines, Trains)

• Sports Centers/Malls

Based on type, full-service restaurants had the most significant share in 2017 and will record a notable CAGR over the projection period. In contrast, the market share of fast food restaurants is constantly increasing due to rapid urbanization and the hectic lifestyle of the population living in metropolitan areas. The upward trend in mobile restaurants, such as food trucks, is also contributing to the positive growth of these fast-service restaurants.

United States Food Service Market Regional Analysis:

Online restaurant food delivery services, as well as various platforms, have exploited the restaurant market in the United States. Restaurants and other food service providers have been actively involved in digitizing their operations, and the number of consumers who prefer to order food online has increased and the number is also expected to increase. Another key factor in the US market was the home delivery system, mainly for pizza. Online platforms for ordering food have become successful recently because of the easy selection and convenient payment options. In 2018, over 70 million people in the United States have ordered food through online services.

Key Players

1. Burger King Worldwide Inc.

2. Starbucks Corp.

3. Yum! Brands Inc.

4. Doctor's Associates Inc.

5. Chipotle Mexican Grill Inc.

6. Seven & I Holdings Co. Ltd

7. McDonald's Corp.

8. Dunkin 'Donuts, Sonic Drive-In and Papa John's.