The Philippines quick service restaurants market size was valued at $4.6 billion in 2018, and is expected to reach $7.9 billion by 2026, registering a CAGR of 6.9% from 2019 to 2026. A quick service restaurant (QSR), also known as fast food restaurant, is a specific type of restaurant that serves fast food cuisine and has minimum amount of table service. Moreover, quick service restaurants are a part of a franchise or restaurant chain operation that provide standardized ingredients, partially ready food, and supplies to every restaurant through well-organized supply channels. In addition, these restaurants are witnessing increased popularity, owing to the fact that they offer excellent customer service, food products offered by them are inexpensive, are appetizing, and take minimal time for preparation. Various types of quick service restaurant sincludefast casual restaurants and catering trucks. Fast casual restaurants have higher sitting capacity as compared tocatering trucks.
Moreover, Filipinos have been enduring an increasingly stressful and time-starved lifestyle. This has increased the demand for food products such as take-away food items and readily available fast food products. Furthermore, surge in demand for convenience food products has eventually resulted in increasein number of quick-service and fast food restaurants across the Philippines. Over the past decade, a number of foodservice outlets skyrocketed in Philippines. From roughly 76,000 outlets in 2012, the number of outlets increased to 93,000 by 2018. Hence, surge in demand for convenience food products is the major factor driving the growth of the Philippines quick service restaurants market in terms of value sales.
Philippines quick service restaurants market has been highly competitive in terms of product offerings as well as prices. The market comprises regional as well as international players, such as Burger King, KFC (Kentucky Fried Chicken), Domino’s Pizza, McDonald’s, and others. Among these players, pricing structure is one of the major factors that differentiates them from each other. Sighting Filipinos’ price-conscious approach on buying fast food products, some of the key operators have been initiating key pricing strategies such as seasonal discounts and customer loyalty programs, which drivemore customers to visit their outlets. Hence, the effective pricing strategies adopted by operators boost the overall Philippines quick service restaurants market growth, in terms of value sales.
Moreover, there has been an increase in number of users on various social media sites with rise in internet penetration. Considering this, most of the key players in the Philippines quick service restaurants market strategize on promoting their products and services on these social media platforms. Social media marketing is one of the major strategies adopted by various companies and industries to promote their product offerings. Thus, rise in use of social media marketing is anticipated to provide lucrative opportunity for the growth of the Philippines quick service restaurants market and eventually increase its customers.
Fast food products are usually known for their taste, unique product offerings, and easy availability, which attract the target customers. However, regular consumption of these products has negative effects on the health of the consumers. For instance, most fast food items, including drinks and sides, are loaded withcarbohydrates with less content of fiber. Therefore, consumption of high amount of carbs can lead to alarming increase in blood sugar level. Thus, this increases the risk for insulin resistance, type 2 diabetes, and weight gain. These factors are expected to restrain the growth of the Philippines quick service restaurants market.
The Philippines quick service restaurants market is segmented into foot type and nature. By food type, the market is segmented into burger/sandwich, pizza/pasta, chicken, seafood and others. Depending on nature, Philippines quick service restaurants market is classified into independent and franchised.
On the basis of food type, the burger/sandwich segment led in terms of market size in 2018, and is expected to retain its dominance during the forecast period, owing to rise in demand for products from renowned fast food joints, such as McDonald’s and Burger King. Apart from these international brands, several key regional brands, such as the Lusso, The Burger Joint, 8Cuts Burgers, and Zak’s Burgers are gaining popularity in the market.
By Food Type
Burger/Sandwich segment dominates the Philippines market and is expected to retain its dominance throughout the forecast period.
As per nature, the franchised segment led thePhilippines quick service restaurants market in 2018, as the segment has comparatively larger customer base, which is loyal to its brand and product offerings. Such franchised quick service restaurants have unique trademark that is used for promotional activities as well as for selling their products.
Independent segment is expected to grow at a highest CAGR of 7.5% during the forecast period.
The key players operating in the Philippines quick service restaurants industry includes BonChon Chicken Philippines, ArmyNavy Philippines, Shakey’s Pizza Asia Ventures Inc., 3M Pizza Philippines, Chooks-to-go, Goldlocks, Jollibbee, McDonald’s, Wendy’s, and YUM Brands.
Key Benefits For Stakeholders
This report provides a quantitative analysis of the market segments, current Philippines quick service restaurants market trends, estimations, and dynamics of market analysis from 2018 to 2026 to identify the prevailing market opportunities.
The key countries in all the major regions are mapped on the basis of Philippines quick service restaurants market share.
The Philippines quick service restaurants market forecast is offered along with information related to key drivers, restraints, and opportunities.
Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and streng then their supplier–buyer network.
In-depth Philippines quick service restaurants market analysis assists to determine the prevailing Philippines quick service restaurants market opportunities.
Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
The report includes the analysis of the Philippines quick service restaurants industry trends, key players, market segments, application areas, and market growth strategies.
Philippines Quick Service Restaurants Market Report Highlights
By Food Type
Key Market Players
CHOOKS-TO-GO, JOLLIBEE FOODS CORPORATION, ARMYNAVY BURGER INC., YUM! BRANDS, MCDONALD’S CORPORATION, 3M PIZZA PHILIPPINES, THE WENDY’S COMPANY, GOLDILOCKS BAKESHOP, INC, BONCHON CHICKEN PHILIPPINES, SHAKEY’S PIZZA ASIA VENTURES INC.
According to the insights of the CXOs of leading companies, the Philippines market provides huge opportunities for the quick service restaurant industry to witness growth in terms of value sales. Over the past one-decade, Filipino customers have gradually shifted their diet to fast food and convenience food, specifically in the urban areas.
Apart from lucrative product offerings that the operators provide as per preference and requirements of the customers, quick service restaurant operators also consider pricing as an influential factor that help drive the overall growth the segment in terms of value sales. Filipinos along with their preferable dishes, also consider the prices associated with it. Hence, majority of players in the Philippines quick service restaurant market initiate several pricing strategies such as seasonal discounts, customer loyalty programs, and others.
The rise in rate of internet penetration in the country, makes way for operators to initiate several key online marketing programs as online platforms are among the easiest ways to create awareness about its product offerings among the mainstream customers. As of 2017, there were around 30 million internet user across the country.