Dining out Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, Japan, UK, Germany - Size and Forecast 2024-2028

Dining out Market Forecast 2024-2028 

The Dining out Market size is forecast to increase by USD 1,034.49 billion at a CAGR of 9.58% between 2023 and 2028. The market's trajectory is shaped by various factors, notably the surge in popularity of chef-driven dining-out restaurant franchises, reflecting evolving consumer preferences for culinary experiences. Furthermore, the increasing demand for gluten-free food underscores shifting dietary trends and health-conscious choices among consumers. Additionally, the market is buoyed by growing innovations and customization in food menus as restaurants strive to cater to diverse tastes and preferences, fostering a dynamic culinary landscape driven by innovation and consumer-centric offerings.

What will be the Size of the Market During the Forecast Period?

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Market Dynamic and Customer Landscape

The market is driven by a confluence of factors, including urbanization, emerging markets, and the rise of online food delivery services. As consumers increasingly seek convenience and variety, dining out options like restaurants, fast foods, and mobile food services continue to expand. However, this growth is accompanied by challenges such as competitive nature, fragmentation dominance, and the need to adapt to digital media marketing and social media trends. Successfully navigating these dynamics requires strategic business strategies and a focus on product satisfaction to maintain market share and overall revenue. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

Growing innovations and customization in food menus are notably driving market growth. The demand for new flavors, fusion food infused with bold flavors, and premium alternatives is on the rise. Furthermore, this generation looks for options that let them customize their meals according to the daily caloric intake that is advised. The main factor driving customization is the growing importance of specialized diets for different medical conditions, food allergies, or weight reduction. Dining-out restaurants also customize their meals to suit the needs of customers, irrespective of the time of day or what is on the menu. Further, using a comprehensive FPNV Positioning Matrix and effective business strategy, restaurant owners can assess product satisfaction and performance levels, evaluate market challenges and opportunities, and strategize to enhance market share and maintain a competitive edge in the ever-evolving landscape of mobile food services, particularly in emerging markets where fast foods and online food delivery services are thriving amidst rapid urbanization.

Moreover, the preference for personalization depends on the menu choices that are available as per the tastes of customers, which range from the type of freshly baked bread to adding different cheeses and meats, extra fixings, jalapeno, bell peppers, and spreads of their choice. Getting the exact flavor helps Quick service restaurants (QSR) and fast-casual restaurant operators increase the probability of repeat customers. Thus, new and distinctive Asian food is expected to gain prominence in the menus of QSRs. Digital media marketing and Social Media are being increasingly leveraged by restaurants to reach wider audiences and enhance market share. Thus, growing innovations in and customization of food menus by restaurants, along with effective digital marketing strategies, are expected to drive the growth of the market during the forecast period.

Significant Market Trends

Implementation of new technologies in dining restaurants is an emerging trend shaping market growth. With a large customer base, tech-savvy restaurants in the market are deploying the most recent mobile innovations to improve the dining experience for their customers. Players in the market are now using beacon technology to engage customers and encourage repeat visits. A few examples of innovative technology used in the global dining restaurant market such as Digital menu boards and Tabletop e-waiter and checkout. Foods such as burgers and pizza have a short shelf life. With geo-activated ordering using beacon technology, customers can place their orders ahead of time.

Moreover, the beacon technology will then caution the staff that the customer is nearby so that the order is ready when the customer arrives and the food is served fresh. This helps in improving the service experience for customers, besides aiding restaurants in increasing their operational efficiency so that customers can get fresh food without wasting their time waiting in queues. The implementation of new technologies, therefore, will help increase consumer satisfaction and aid the growth of the market during the forecast period.

Major Market Challenge

Rising preference for home-cooked food is a significant challenge hindering market growth. Consumers are becoming increasingly health-conscious and prefer home-cooked food to food from restaurants or cafeterias. This is mainly because consumers perceive fast meals to be very unhealthy as it contains added sugar, large amounts of carbohydrates, and unhealthy fats. Consumers have become more aware of the increasing prevalence of lifestyle-related diseases such as diabetes and obesity. Thus, they try to avoid eating unhealthy food and prefer eating home-cooked food. Home-cooked food has high nutritional value and is fresh and hygienic. The chances of contamination are also much lower than food from quick service restaurants (QSRs). 

Additionally, other benefits such as portion control, hygiene, safety, better control over allergens, and ensuring that nutrients are retained encourage consumers to opt for home-cooked food. The number of cooking programs on TV and the Internet is also increasing. Many consumers are more likely to watch cooking programs and try preparing the same dishes at home. This also leads to an increased preference for food prepared at home. Thus, the rising preference for home-cooked food due to multiple health benefits is expected to hamper the growth of the market during the forecast period.

Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Brinker International Inc. - The company offers dining out services, which include a wide variety of Chinese and Italian food.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Chick fil A Inc.
• Chipotle Mexican Grill Inc.
• Dominos Pizza Inc.
• Godfathers Pizza Inc.
• Inspire Brands Inc.
• ITC Ltd.
• Jack in the Box Inc.
• Jollibee Foods Corp.
• McDonald Corp.
• Noodles and Co.
• Oberoi Group
• Potbelly Corp.
• Restaurant Brands International Inc.
• Shake Shack Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

What is the Largest-Growing Segment in the Market?

The restaurants segment is estimated to witness significant growth during the forecast period. The market encompasses a diverse range of restaurant types, catering to various tastes and preferences. Fine dining establishments offer luxurious experiences with gourmet cuisine, elegant ambiance, and impeccable service, making them ideal for special occasions and discerning diners. Casual dining chains provide a relaxed atmosphere and a diverse menu at affordable prices, attracting families and groups for casual meals.

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The restaurants segment was the largest segment and was valued at USD 1,114.15 billion in 2018. Further, companies operating in the market are collaborating with technology giants to increase the demand for innovative technology solutions to enhance operational efficiency and customer satisfaction. For instance, in December 2023, McDonald and Accenture announced an expanded strategic partnership aimed at implementing cutting-edge technology and generative Artificial intelligence (AI) solutions across McDonalds restaurants worldwide. Also, companies in the market highly focus on marketing campaigns and switching up their social media ads through Facebook, Instagram, and Google. Vendors also focus on increasing their social media engagement as consumers tag these restaurants in their blogs or various social media posts. These marketing strategies attract a larger customer base as most people are influenced by these posts and reviews. Thus, the restaurants segment is expected to contribute to the growth of the market during the forecast period.

Which are the Key Regions for the Market?

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APAC is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The regional dining out market is characterized by a rich tapestry of culinary traditions, diverse cuisines, and vibrant dining cultures. Countries such as China, Japan, India, and Thailand are renowned for their unique culinary offerings, attracting both domestic and international diners. Traditional eateries, ranging from street stalls to family-owned restaurants, offer authentic flavors and regional specialties, providing immersive dining experiences for adventurous food enthusiasts. Factors driving the growth of the regional market are the increasing number of restaurants in the region, the introduction of new products, and the growing preference for dining out among the Millennial population.

Furthermore, companies are localizing the food served in their dining-out restaurants to the tastes and preferences of consumers in this region. Also, aggressive marketing and promotion campaigns help companies in the market to create brand awareness and increase their product reach, which will propel the growth of the market in APAC. Vendors are also introducing new offerings in their menus that cater to consumers of all classes, including upper, middle, and lower-middle-class people. The presence of diverse cultures and demographics in APAC also aids in the adoption of fast sustenance in this region as it opens up new gateways for vendors to introduce innovative products and expand their existing menus. This will help in increasing their product penetration in APAC during the forecast period.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Type Outlook 
  • Restaurants
  • Drinking establishments
  Product Outlook 
  • North American
  • Italian
  • Mexican
  • Others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile 
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview 

The Dining Out Market is a dynamic landscape shaped by various factors, including the FPNV Positioning Matrix and Business Strategy employed by establishments to enhance Product Satisfaction and Overall Revenue. With the rise of Online Food Delivery Services and Digital Media Marketing, dining experiences are increasingly influenced by Urbanization and Globalization trends. Fast Foods and Full-Service Restaurants cater to diverse preferences, leveraging Joint Ventures and Foreign Investments for Global Expansion. Additionally, Fast Food Consumption is bolstered by the convenience of Takeout and Delivery, while Customer Loyalty and Public Reputation are pivotal in attracting patrons.

Moreover, the advent of Conversational Food AI Platforms and Natural Language Processing augments service efficiency, while Vegan Diet options and Plant-Based Chicken Products reflect evolving dietary preferences. Food Courts and Food Malls within Shopping Malls offer diverse culinary experiences, attracting patrons seeking Specialty Beverages and Exotic Ingredients. In this competitive landscape, Franchising opportunities abound, facilitating the expansion of Quick-Service Restaurants and Full-Service Restaurants alike, contributing to the vibrancy of the global Hospitality Market and the overall Food Service Establishment sector. The market is a dynamic sector shaped by various factors, including the Full-Service Restaurants Market and Fast Food Restaurants catering to diverse preferences.

Evaluation of key metrics and performance metrics helps establishments gauge their Competitive Nature and Success Levels. With the advent of Machine Learning and Live Streaming, dining experiences are evolving to incorporate innovative technologies for enhanced customer engagement. The market encompasses a wide range of players, from Multi-National Companies to local Retailers and Providers, serving a diverse clientele that includes Working Women seeking convenience and Social Interactions. Mobile Food Services and Out-of-Home Food Consumption further contribute to the vibrancy of the market and the overall Hospitality and Restaurant Industry (HRI Sector).

Market Scope
Report Coverage	Details
Page number	167
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 9.58%
Market Growth 2024-2028	USD 1034.49 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	8.81
Regional analysis	APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 39%
Key countries	US, China, Japan, UK, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Brinker International Inc., Chick fil A Inc., Chipotle Mexican Grill Inc., Dominos Pizza Inc., Godfathers Pizza Inc., Inspire Brands Inc., ITC Ltd., Jack in the Box Inc., Jollibee Foods Corp., McDonald Corp., Noodles and Co., Oberoi Group, Potbelly Corp., Restaurant Brands International Inc., Shake Shack Inc., Starbucks Corp., The Subway Group, The Wendys Co., and YUM Brands Inc.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behavior
• Growth of the market industry across APAC, North America, Europe, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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