1. What is the quick service segment?

The Quick Service Restaurant (QSR) market refers to a segment of the foodservice industry
that emphasizes fast and convenient food offerings to customers. Also known as fast-food
restaurants, QSRs are characterized by their rapid service, limited menu options, and
efficient operations. These establishments cater to consumers looking for quick meals
on-the-go or for a casual dining experience. QSRs typically offer a variety of menu items
such as burgers, fries, sandwiches, and beverages, often at affordable prices. Quick service
restaurants (QSRs) operate with a counter-service model, where customers order, pay, and
pick up their food promptly. Drive-thru service is a common feature, emphasizing minimal,
fast, and efficient customer interaction.

These establishments focus on affordability, offering low-cost food with limited menu options.
QSRs are typically open for all three meal periods—breakfast, lunch, and dinner—and some
may provide 24-hour service. Chain dominance is a notable feature of the QSR landscape,
and these establishments are often designed to be child-friendly, offering specific menus
catering to children's preferences.

2. History of QSR

The history of Quick Service Restaurants (QSRs) traces back to the early 20th century,
evolving in response to changing lifestyles and consumer demands.
The concept of fast food emerged with the introduction of the automat in 1800, allowing
patrons to quickly access pre-cooked meals. The world's first automat, Quisisana, opened in
Berlin, Germany in 1895.
Automat
An automat is a fast food restaurant where simple foods and drinks are served by vending
machines and there is typically no waitstaff. Automats gradually declined in popularity and
eventually disappeared in the 1970s and 1980s. But it is making a comeback especially
during covid. It wasn’t long before they appeared in Philadelphia and then New York City,
much to the delight of many customers.

White Castle, founded in 1921, is often credited as the first fast-food chain, pioneering
standardized menus and assembly-line cooking. The success of White Castle set the stage
for the rise of iconic QSRs like McDonald's, which revolutionized the industry in the 1950s
with its "Speedee Service System." The latter half of the 20th century witnessed the global
expansion of QSRs, including the establishment of major chains like KFC, Subway, and
Pizza Hut.

3. How do they operate? How does it work?

In quick service restaurants (QSRs), the food preparation and service follow a streamlined
and efficient process:

1. ORDERING - Customers place orders at the counter, drive-thru, or digitally via apps or
kiosks.
2. PAYMENT - Payments are made in advance at the counter, drive-thru, or through digital
methods.
3. FOOD PREPARATION - Kitchen staff swiftly prepares food using standardized recipes
and assembly line processes to ensure consistency and speed.
In quick service restaurants (QSRs), the food preparation process often involves a
combination of pre-cooked or partially-cooked ingredients. Many QSRs use
standardized recipes and cooking methods to streamline the process and ensure
consistency. Some menu items may require minimal cooking, such as assembling
sandwiches or burgers using pre-cooked components (patty). Other items may
undergo additional cooking, such as heating or frying (fries), as part of the final
preparation steps. The level of pre-cooking or cooking on-site can vary depending on
the specific restaurant and the type of food they offer. Overall, the goal is to provide
fast and efficient service to meet the quick-service model's demands.

Yes, QSRs often have a centralized kitchen called a commissary. The commissary
streamlines food preparation, manages the supply chain, ensures quality control, promotes
efficiency and cost savings, standardizes menus, and handles logistics for distribution to
individual QSR locations.
The commissary is responsible for prepping, marinating, and partially cooking ingredients
needed for menu items.
Implementing consistent recipes and production methods to maintain a standardized menu
across various QSR outlets.

4. ASSEMBLY - Components are assembled efficiently into the final food items.
 An example of assembly in a quick service restaurant (QSR) context would be the
preparation of a burger. The components, such as the pre-cooked patty, lettuce,
tomato, and condiments, are individually prepared or portioned in advance. When an
order is placed, the kitchen staff assembles these components quickly and efficiently.
5. DELIVERY - Completed orders are handed to customers at the counter or drive-thru, with
options for takeout or delivery.

6. DINE IN OR TAKE OUT - Customers choose to dine in if seating is available or opt for
takeout for a quick experience.

In QSRs, the focus is on speed and efficiency, ensuring customers receive their affordable
orders fast.

4. What are the primary demographics targeted by QSRs?

QSRs typically target a broad demographic, including:

​
​ Families: QSRs often offer family-friendly menus and promotions, catering to parents
and children. Example: McDonald's Happy Meals.
​
​ Young Adults: Many QSRs appeal to young adults with quick, affordable options.
Example: Taco Bell's value menu.
​
​ On-the-Go Professionals: QSRs attract busy individuals seeking fast and
convenient meals. Example: Subway's customizable and quick-to-order sandwiches.
​
​ Students: QSRs near educational institutions may target students with
budget-friendly options. Example: Pizza Hut's student discounts.
​
​ Price-Conscious Consumers: QSRs generally emphasize affordability, appealing to
price-conscious consumers. Example: Dollar menu items at various fast-food chains.

Travelers: QSRs located in airports, train stations, and rest stops target travelers
seeking quick meals while on the move.

5. What is the current market size of the QSR segment?

Quick Service Restaurant (QSR) Market size was valued at USD 261.94 Billion in 2020
and is projected to reach USD 386.55 Billion by 2028, growing at a CAGR (Compound
annual growth rate - is a way to measure how an investment or business has grown over a
specific period of time.) of 5% from 2021 to 2028.
Several key growth drivers contribute to the expansion of the Quick Service Restaurant
market. Firstly, the modern lifestyle has led to a higher demand for convenience, with
consumers seeking quick and hassle-free dining options.
Secondly, affordability is a significant factor in the popularity of QSRs. With
budget-conscious consumers seeking value for their money, QSRs often provide economical
meal options that appeal to a wide range of demographics.

6. Who are the major players in the QSR industry, and what is their market
share? In philippines and other country

World's Largest Fast Food Chains

McDonald's
McDonald's operated and franchised a total of 40,275 restaurants worldwide in 2022

Subway
As of February 2023, Subway had approximately 37,000 locations in more than 100
countries
Starbucks
World-famous coffeehouse chain, Starbucks, accounted for 35,711 stores worldwide in 2022.

Kentucky Fried Chicken

As of 2022, there are at least 25,000 KFC outlets in 147 countries and territories in the
world.

Burger King
The Burger King system operates more than 18,700 locations in more than 100 countries
and U.S. territories.
7. How do QSRs approach menu innovation to stay competitive?

QSRs approach menu innovation by introducing new and trendy food items, incorporating
seasonal specials, offering limited-time promotions, and responding to changing consumer
preferences. They may also focus on healthier options, customizable choices, and
sustainable practices to meet evolving customer demands and stay competitive in the
fast-food industry.

Ex:
Burger King:
Offering a plant-based "Impossible Whopper" as a sustainable and vegetarian-friendly
alternative to the classic Whopper.

Mcdonalds mix n match