Players operating limited-service restaurants are expected to continue grappling with rising costs in terms of raw material prices, manpower, and rent. To maintain their margins, brands may have to modify their processes either through reducing their reliance on manpower or finding efficiencies in their overhead costs.
Eat-in is expected to be the largest and most dynamic contributor within consumer foodservice by fulfilment over the forecast period, followed by delivery services, and takeaway. As such, brands will likely focus on providing consumers with more value when they eat-in at their outlets, for example, through providing a seamless ordering, payment, and collection system.
Brands are expected to focus on adapting their menu offerings to cater to changing consumer preferences in Singapore. This includes the growing number of global chains which are present in the market and which are seeing the benefits of bringing a local flavour to part of their menu offerings to better suit local taste buds.
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Limited-Service Restaurants
Limited-Service Restaurants (LSR) combine fast food and 100% home delivery/takeaway outlets. These outlets offer limited menus with items that can be prepared quickly. Customers typically order, pay, and pick up their order from a counter, though some outlets can have limited table service. This also includes 100% Home Delivery/Takeaway which provide no facilities for consumption on the premises. LSR tend to specialize in one or two main entrees such as hamburgers, pizza, or chicken, but they usually also provide drinks, salads, ice cream, dessert, etc. Food preparation is generally simple and involves one or two steps, allowing for kitchen staffs generally consisting of younger, unskilled workers rather than professional chefs. Other key characteristics include: • A standardised and restricted menu • Tight individual portion control on all ingredients and on the finished product • Individual packaging of each item • Counter service • For Chained Limited Service Restaurants, chained and franchised operations which operate under a uniform fascia and corporate identity • Any outlet offering full-service restaurant seating with servers would be excluded, even if delivery service is available.
See all of our definitionsThis report originates from Passport, our Limited-Service Restaurants research and analysis database.
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