The restaurants and mobile food services market is estimated to be valued at US$ 2.29 trillion in 2023 and is projected to record a CAGR of 3.0% between 2023 and 2033 to reach an expected valuation of US$ 3.08 trillion by 2033.
Restaurants and mobile food services are expected to expand as technology replaces the meal delivery sector in the marketplace. As both businesses and consumers benefit, the implementation of automation and improved procedures in the food industry is quickly gaining popularity. The social media age, Gen Z, and the twenty-first century have all contributed to phenomenal growth in the market for restaurants and mobile food services.
Ordering through mobile phones and other online platforms is becoming more and more common. This connection between businesses and end consumers has subsequently been crucial to the growth of the restaurants and mobile food services market. The services offered by restaurants and mobile food services include preparing and delivering foods and drinks that are ready for consumption as well as offering catering services to both public and private end users, whether by internal or external operators. Currently, mobile food services account for between 50% and 55% of all food spending in the United States, however, in underdeveloped nations, this percentage could be as low as 15% to 20% or even less.
Global demand for mobile food services has been significantly boosted by socioeconomic factors such as high disposable income, an active and increasingly portable lifestyle, the emergence of corporate outsourcing of non-core functions, and market expansion in well-known and core industries like transportation and retail, all these aspects are fueling the growth of the market.
Globalization Envisaged to Pave the Door for the Establishment of Facilities in High-growth Areas
In the age of globalization, restaurant owners are likely to sell their cuisines to customers all over the world thanks to increased joint ventures, foreign investments, global expansion, and international corporations setting up facilities in high-growth areas. Due to the ease of access to exotic ingredients made possible by globalization, restaurants now have the chance to succeed on a global scale by providing their customers with a wider range of exotic food. Restaurants now have access to a wider range of potential suppliers thanks to globalization, which also lessens their negotiating power and increases sales.
As an example, McDonald’s manufactures in many countries and has franchises all over the world. To ensure its global brand, it finances and supports projects to tailor its goods and services to various regions. This increase in globalization is probably going to increase investments and ultimately push the restaurants and mobile food services market.
Social Media Plays a Big Role in the Restaurant and Mobile Food Services Industries
· Restaurants and mobile food service establishments rely significantly on recommendations and evaluations, thus restaurants are promoting themselves via social media channels.
· Customers can order and make reservations through mobile applications such as GrubHub and JustEat. Customers submit images and reviews on social media, improving restaurant recognition.
· To interact and communicate with their online audience, restaurants are using live-streaming restaurant footage. The restaurants and mobile food service markets are thus experiencing rapid expansion.
Online Food Delivery May Have Adverse Impacts That Challenge Market’s Expansion
· Customers are hesitant to use online food ordering because of a couple of its drawbacks. Even while food delivery provides numerous advantages, there are some drawbacks as well. When there is a lot of traffic, home delivery applications have problems.
· Food from delivery services is typically wrapped in plastic, making it less aesthetically pleasing than food that is presented correctly on your plate in a restaurant. The fact that guests may be charged extra fees for using meals on wheels is another drawback. Even though most countries offer free meal delivery, if a customer’s order falls below a specific threshold, they may still be forced to pay for a delivery, even though the food they purchased was rather affordable. This can limit the market to some extent.
Which Types of Restaurants and Mobile Food Services are Widely Used?
Cafeterias, Grill Buffets, and Buffets Segment CAGR: 3.4%
The restaurants and mobile food service market is split up into many types, including full-service restaurants, limited-service restaurants, cafeterias, grill buffets, and buffets as well as mobile food services. Full-service restaurants are sitting-down establishments that offer a full menu and offer table service to customers. They serve breakfast, lunch, and dinner, all with a variety of options.
The two types of restaurants that contribute most to this segment are upscale and casual. Cafeterias, grill buffets, and buffets include places like restaurants, cafes, fast food franchises, food trucks, and online meal ordering.
The Cafeterias, grill buffets, and buffets segment of the restaurants and mobile food service market is expected to record a CAGR of 3.4% between 2023 and 2033. Mobile food service is a relatively new idea in the industry, which was founded in the 20th century, in contrast to commercial food service, which has been a part of the business since its inception. As families’ disposable income increases, consumer spending on hotels, dining out, coffee shops, and other establishments rises. Leading fast-food chains like Domino’s, Pizza Hut, KFC, Starbucks, Burger King, Taco Bell, Subway, McDonald’s, Wendy’s, Papa John’s Pizza, and Chipotle Mexican Grill are taking advantage of this opportunity to establish their presence in various international markets given the trend of millennial consumers choosing quick service restaurants. Throughout the projection period, this trend is anticipated to drive market expansion.
Why Does North America Dominate the Global Market?
United States Market Size: US$ 565.6 billion
Canada Market CAGR: 2.2%
Between 2023 and 2033, North America had a significant share of the restaurants and mobile food service market. Restaurant operating expenses are rapidly increasing in developed countries like the United States and Canada. Due to the rise in labor expenses and the price of raw materials, companies’ profit margins are under a lot of pressure. In the industrial and service sectors, there is a significant push towards automation and digitization as a result. For instance, Domino’s introduced an autonomous pizza delivery system in Houston in 2021 after partnering with Nuro, one of the top self-driving delivery services. Customers can submit pre-paid orders, and Nuro R2 Robots deliver the items to the recipients.
What is the Future of the Market in Asia Pacific?
China Market Size 2033: US$ 715.95 billion
China Market CAGR: 5.4%
Japan Market CAGR: 0.8%
Asia Pacific Market Size: US$ 356.9 billion
During the projected period, the restaurants and mobile food service market in Asia Pacific is anticipated to increase at a significant rate. In nations like Australia, Japan, and South Korea, patrons favor dining at full-service establishments. These restaurants have a greater market share than other types in comparison. Quick-service restaurants are expanding significantly in the market because of their improved efficiency and quick service times.
The second dominant food service sector in the world is found in China. The country’s industrialization was accelerated by strong and swift economic expansion, which also aided in the development of a sizable middle-class population with more disposable income. This industry for restaurants and mobile food services has grown significantly over the last several years as more people had access to dining establishments that accept dine-in customers.
How is Europe Creating Lucrative Opportunities for the Market?
Germany Market CAGR: 1.4%
The restaurants and mobile food service industries are highly competitive in Europe, where the hospitality industry plays a significant role. For people traveling to Europe, the tourism industry has created various work opportunities. The increased popularity of eating out and busier lifestyles, which increase demand for prepared dishes, are contributing factors to the expansion of the food service industry in Europe. Germany is the greatest market in Europe. Convenience, regional production, wellness, Asian and ethnic cuisines, and health and well-being are the key trends in the food service industry in Germany. The considerable purchasing power of consumers in Germany also fuels the restaurants and mobile food services market.
How Competition Influences the Restaurants and Mobile Food Services Market?
Market participants were unwilling to risk their businesses by making investments in uncertain markets and risking losses because the pandemic had such a severe impact on this industry in 2020, which included restaurants and mobile food services. However, as the markets started to open, market participants also started expanding their businesses, and the industry was changing. Empire Distributors has been acquired by Imperial Dade, a top United States distributor of cleaning products and food service packaging. This acquisition may allow the Imperial Dade platform to run 91 distribution locations across the nation.