United States Food Services Market By Food Service Type (Cafes & Bars, Cloud Kitchen, Full Service Restaurants, Quick Service Restaurants), By Outlet (Chained Outlets, Independent Outlets), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

United States Food Services Market was valued at USD 1.02 Trillion in 2024 and is expected to reach USD 1.53 Trillion by 2030 with a CAGR of 6.73% during the forecast period. The US is the second largest market for foodservice, globally, due to the increased dining-out culture. Rising number of dual-earner households, expanding menu choices to satisfy consumer preferences are expected to propel demand for Food Services over the next five years. Consumer dining preferences are evolving, with an increasing desire for diverse culinary experiences and ethnic cuisines. Around 80% of Americans now choose ethnic dishes at least once a month in fine dining restaurants, indicating the country's expanding tastes and willingness to explore international flavors. This shift has led to a rise in restaurants offering authentic global dishes, especially in urban areas where demographic diversity fuels demand for a variety of dining options. The beverage sector has also seen growth, with Americans consuming about 3.9 billion gallons of tea annually, highlighting the rising popularity of specialty beverages.

In 2024, Unilever Food Solutions has launched its annual Foodservice Industry Trends Report, highlighting key trends shaping the future of the foodservice sector. The report emphasizes consumer demand for sustainability, plant-based foods, and convenience. The rise of plant-based foods is a key trend in the U.S. foodservice market, with nearly one-third of the population favoring plant-based options, and over 40% of consumers agreeing that their availability enhances the dining experience. Additionally, the "Local Abundance" trend celebrates locally sourced ingredients, which is also profitable, as 77% of Gen Z diners and 70% of Baby Boomers are willing to pay a premium for dishes featuring local ingredients. These trends are expected to impact the foodservice industry in the coming year.

Key Market Drivers

Consumer Demand for Convenience and Delivery Services

One of the primary drivers of the United States Food Services Market is the increasing consumer demand for convenience, especially in the context of fast-paced lifestyles. As people’s schedules become busier, they seek convenient and time-saving solutions for meals. This trend has resulted in the rapid growth of food delivery services, meal kits, and takeout options. Major food delivery platforms such as Uber Eats, DoorDash, and Grubhub have seen substantial growth, with consumers opting for the convenience of ordering from a variety of restaurants without leaving home. Additionally, online ordering platforms allow consumers to customize their meals to fit specific dietary needs, which adds an extra layer of convenience. Fast food chains, casual dining, and quick-service restaurants (QSRs) are capitalizing on this trend by enhancing their mobile app functionalities and expanding delivery options. The COVID-19 pandemic further accelerated this shift, as people avoided dining out and turned to contactless food delivery for safety and convenience. This demand for on-the-go food has prompted businesses to invest in digital platforms, streamlined ordering processes, and partnerships with delivery services, solidifying the importance of convenience in driving market expansion. The increasing reliance on delivery services has also led to the growth of ghost kitchens commercial kitchens used exclusively for delivery orders. This model reduces operational costs for restaurants and allows them to serve a larger customer base without the need for physical storefronts, making it an attractive option for businesses seeking to meet the growing demand for food delivery.

Growing Consumer Focus on Health and Wellness

Another significant driver of the United States Food Services Market is the growing consumer focus on health and wellness. As health-consciousness continues to rise, more consumers are becoming selective about the foods they consume, opting for meals that align with their dietary preferences and health goals. The demand for plant-based, organic, and gluten-free options has surged, and many restaurants and foodservice providers are adjusting their menus to cater to these changing preferences. The increased awareness of the benefits of a balanced diet and clean eating has led to a surge in health-focused dining, with consumers increasingly seeking out options that emphasize fresh, whole ingredients and nutritional benefits. As a result, food service operators are expanding their menus to feature healthier alternatives such as low-calorie meals, vegetarian and vegan dishes, and nutrient-dense foods. This trend has driven the success of health-conscious restaurants and foodservice chains, as well as the rise of wellness-centric establishments like smoothie bars and juice shops. Additionally, consumers are now more interested in knowing the nutritional content of their meals. To meet this demand, many foodservice providers have incorporated transparency into their marketing, offering detailed nutritional information and emphasizing sustainable sourcing practices. This growing focus on health and wellness is expected to continue shaping the foodservice landscape as more people prioritize healthier lifestyles and seek dining options that align with their values.

Technological Advancements in Food Service Operations

Technological innovation is another major driver of growth in the United States food services market. Over the past few years, the integration of technology into foodservice operations has transformed the industry by improving efficiency, customer experience, and operational processes. From online ordering systems and mobile apps to advanced point-of-sale (POS) systems, technology is playing a crucial role in shaping the future of food services. One of the most notable technological trends is the use of digital ordering platforms. Consumers can now easily place orders through apps or websites, with options for delivery or pickup. This seamless digital experience improves customer satisfaction by reducing wait times and offering greater convenience. Additionally, AI and machine learning algorithms are being leveraged to personalize the dining experience, with recommendations tailored to individual preferences and past orders. In the kitchen, foodservice operators are also benefiting from technological advancements. In 2024, Square has partnered with U.S. Foods to join the CHECK® Business Tools program, providing restaurants with advanced software and hardware solutions designed to streamline operations, save time, and improve efficiency. The collaboration will help restaurants enhance sales, manage labor, and optimize cash flow by offering integrated tools for both front- and back-of-house operations. Square’s technology solutions are now available to U.S. Foods' extensive network of customers across the U.S., empowering restaurants to modernize their operations and drive success. 

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Key Market Challenges

Labor Shortages and High Employee Turnover

The United States food services market faces significant challenges related to labor shortages and high employee turnover. The industry is heavily reliant on a workforce that is often underpaid and experiences high levels of job dissatisfaction. Many food service employees work in low-wage positions, leading to a lack of job stability and a constant turnover rate. During the COVID-19 pandemic, the food services sector saw many employees leave the industry, and a combination of health concerns, government stimulus checks, and better-paying opportunities in other sectors led to a widespread labor shortage. Even as the economy recovered, the challenge of attracting and retaining qualified workers persists. The high turnover rate not only increases recruitment and training costs but also affects the consistency and quality of customer service. As the industry recovers, foodservice operators are focusing on improving working conditions, offering competitive wages, and providing benefits like flexible hours and health insurance to address these challenges. However, finding solutions to the labor shortage remains one of the most pressing issues in the food services market.

Rising Food and Operational Costs

Rising food and operational costs represent a major challenge for the United States Food Services Market. Factors like inflation, supply chain disruptions, and extreme weather events have driven up the prices of essential ingredients, packaging materials, and energy costs. Foodservice operators, especially smaller businesses, are struggling to maintain profitability in the face of these price increases. Many restaurants are being forced to raise menu prices to offset these higher costs, but this can alienate cost-sensitive customers. Additionally, global supply chain disruptions, especially in the wake of the pandemic, have led to delays and shortages in certain ingredients, further complicating inventory management and pricing strategies. The volatility in commodity prices, such as for meat, dairy, and vegetables, makes it difficult for restaurants to maintain consistent pricing and product offerings. To mitigate these rising costs, food service operators are looking to streamline operations, reduce waste, and increase efficiency through technology and smarter supply chain management. However, the ongoing inflationary pressures continue to pose a significant challenge to the industry's stability.

Key Market Trends

Increased Demand for Plant-Based and Alternative Proteins

A significant trend in the U.S. food services market is the rising demand for plant-based and alternative proteins. As consumers become more health-conscious and environmentally aware, many are shifting away from traditional animal-based proteins to plant-based alternatives like Beyond Meat, Impossible Foods, and various other meat substitutes. This shift is driven by the growing popularity of vegan, vegetarian, and flexitarian diets, which focus on reducing meat consumption for health, ethical, and environmental reasons. Restaurants and foodservice operators are responding by adding plant-based menu options, including plant-based burgers, dairy alternatives, and protein-rich dishes made from legumes, grains, and tofu. Fast food chains, casual dining, and even fine dining establishments are embracing this trend to cater to the increasing number of consumers looking for plant-based options. This trend is not just confined to vegans and vegetarians but is appealing to a broader audience interested in reducing their meat consumption or trying healthier, sustainable options. The plant-based food sector is expected to continue expanding, influencing both food production and culinary innovation, as more consumers opt for environmentally-friendly and ethical food choices.

Technology Integration and Digital Ordering Systems

Technology continues to be a key trend in the U.S. food services market, with digital ordering systems, contactless payments, and automation reshaping how businesses interact with consumers. The demand for convenience has spurred the growth of online ordering platforms, mobile apps, and delivery services. Consumers now expect seamless experiences through digital channels, allowing them to order food, pay bills, and track delivery status with ease. Restaurants are increasingly adopting technologies like self-service kiosks, mobile apps, and table-side ordering, enhancing the customer experience and reducing wait times. Additionally, AI-powered systems are being used to personalize menu recommendations, optimize inventory management, and improve operational efficiency. Automation, such as robotic chefs and smart kitchens, is gaining traction to improve food preparation consistency and reduce labor costs. During the pandemic, the accelerated adoption of technology has become a standard for many establishments, and this trend shows no sign of slowing down. The growing integration of digital tools and technology is not only making food services more efficient but also offering customers more control and convenience, which is now an expectation in the industry.

Sustainability and Eco-Friendly Practices

The growing emphasis on sustainability is another major trend influencing the United States Food Services Market. Consumers are becoming increasingly aware of the environmental impact of their food choices, prompting foodservice operators to adopt more sustainable practices. This includes sourcing ingredients locally, reducing food waste, implementing eco-friendly packaging, and focusing on sustainable farming practices. Restaurants and food service providers are responding by offering more eco-conscious options, such as organic, non-GMO, and locally-sourced ingredients. Many chains are also eliminating single-use plastics and adopting biodegradable or recyclable packaging. In addition, food waste management has become a priority, with businesses investing in composting or partnering with organizations to redistribute unused food to those in need. This trend is not just driven by consumer demand; it is also influenced by government regulations and the growing importance of corporate social responsibility. Sustainability is now viewed as a competitive advantage, with consumers increasingly choosing restaurants that align with their environmental values. The trend is likely to continue as both consumers and businesses place greater emphasis on reducing their carbon footprint and promoting eco-friendly practices throughout the food service supply chain.

Segmental Insights

Food Service Type Insights

Quick Service Restaurants dominate the United States food services market due to their ability to offer fast, affordable, and convenient dining options that meet the needs of busy consumers. QSRs, also known as fast food restaurants, provide a wide variety of menu items that are prepared and served quickly, making them a popular choice for individuals seeking affordable meals without long wait times. This segment includes iconic brands like McDonald’s, Burger King, and Taco Bell, which have a massive presence across the country. The dominance of QSRs is driven by several factors. First, the demand for convenience and speed in today’s fast-paced world makes QSRs highly appealing, as they cater to people who are on the go and need meals that can be quickly purchased, eaten, or delivered. Additionally, QSRs are highly adaptable to changing consumer preferences, often updating their menus to include healthier options, plant-based items, or regional flavors to attract a broader range of customers. The rise of delivery services and mobile ordering has further boosted QSRs' market share, as they are able to cater to customers' demand for food-on-demand. With competitive pricing, frequent promotions, and consistent offerings, Quick Service Restaurants are expected to remain the dominant segment in the U.S. food services market for the foreseeable future. 

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Regional Insights

The South region of the United States holds the dominant share in the United States Food Services Market due to its large population, diverse culinary preferences, and strong economic growth. States like Texas, Florida, and Georgia are key contributors to this dominance, as they house major metropolitan areas with high concentrations of consumers and food service businesses. The region’s unique culture and food traditions also play a significant role in its dominance. Southern cuisine, including barbeque, fried chicken, and seafood, has a rich heritage that resonates with both locals and tourists. This cultural aspect fosters a strong local demand for restaurants and food service outlets that specialize in traditional Southern dishes. Additionally, the South is known for its diverse mix of international cuisines, attracting a broad customer base with varied tastes. The economic growth in the South has spurred the expansion of both national chains and independent restaurants. States like Texas and Florida have seen an influx of new residents and businesses, driving demand for food services across all segments, including Quick Service Restaurants (QSRs), casual dining, and fast casual establishments. Furthermore, the region’s lower operating costs, including labor and real estate, make it an attractive location for food service operators to open new outlets, further contributing to its dominant market share in the food services industry.

Recent Developments

• In 2024, Lightspeed has joined the U.S. Foods CHECK Business Tools program, a platform designed to enhance restaurant operations through innovation. This collaboration aims to offer restaurant owners advanced technology solutions to streamline their operations. This partnership is part of a broader effort to drive industry transformation, particularly in areas such as digital transformation and operational performance, helping restaurants adapt to evolving consumer demands and market conditions.
• In 2024, Solar Foods has introduced its innovative protein produced from air and electricity to the U.S. market, launching at a restaurant. This protein, derived from a sustainable process, offers a new, eco-friendly alternative to traditional plant-based proteins. Solar Foods' technology uses carbon dioxide, water, and renewable electricity to create a protein-rich product with minimal environmental impact, positioning it as a revolutionary solution for food production in the context of growing sustainability concerns.
• In 2024, Perkins Restaurant & Bakery has rebranded as Perkins American Food Co., unveiling a new identity that includes a modern logo, restaurant designs, and elevated services while maintaining its core values of value, quality, and service. The company’s evolution aims to appeal to today’s consumers while honoring its heritage. This rebranding also includes a revamped menu with a focus on value and crave-worthy meals, especially from its bakery.

Key Market Players

• Bloomin' Brands, Inc.
• Brinker International, Inc.
• Chipotle Mexican Grill, Inc.
• Darden Restaurants, Inc.
• Doctor's Associates, Inc.
• Domino's Pizza Inc.
• Inspire Brands, Inc.
• McDonald's Corporation
• MTY Food Group Inc.
• Northland Properties Corporation

Report Scope:

In this report, the United States Food Services Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• United States Food Services Market, By Food Service Type:

o   Cafes & Bars

o   Cloud Kitchen

o   Full Service Restaurants

o   Quick Service Restaurants

• United States Food Services Market, By Outlet:

o   Chained Outlets

o   Independent Outlets

• United States Food Services Market, By Region:

o   South

o   West

o   Midwest

o   Northeast

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the United States Food Services Market.

Available Customizations:

United States Food Services Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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