The QSR market is forecast to expand in value by £1.8bn from 2019-2023, according to Lumina Intelligence’s Operator Data Index quarterly download.
Consumer demand for value is expected to drive growth in the fast food market during the cost of living crisis.
Continued outlet expansion, including drive thru and travel hub locations will see fast food segments outpace 2019 values.
Operators in the branded contemporary fast food segment, including Five Guys, German Doner Kebab, Popeyes and Chopstix, are expected to lead growth in the QSR market from 2019-2023 by +19.4%.
Five Guys alone is expected to grow its turnover by +88.6% from 2019 led by the continued expansion of its estate.
The brand’s success is driven by its emphasis on high quality fresh food, and continued expansion in high footfall locations.
The top 10 QSR operators by outlets are expected to achieve a combined outlet growth of +4.1% in 2023, to a total of 6,116 sites.
The top 10 are also forecast to reach a turnover value of £8.5bn in 2023.
McDonald’s and Burger King are expected to accelerate growth to 3.2 % and 6.1 % respectively, adding new drive thru locations.
McDonald’s is the leading QSR brand by outlet numbers, with 1,391 stores, and forecast to reach 1,435 this year.
Domino’s is second with 1,190, forecast to 1,210. KFC meanwhile has 998, forcast to rise to 1052.
Popeyes is expected to lead outlet growth among QSR brands in 2023, growing 126.7% from 15 to 35 sites.
Fireaway Pizza is expected to see strong outlet growth as it aims to expand within the UK as well as internationally through franchising. The pizza chain’s popularity is led by tapping into consumer demand for high quality at a value led price.
German Doner Kebab is also expected to see strong growth of 30% to reach 155 stores.
To find out more about Lumina Intelligence’s Operator Data Index, please click here.
