Moving forward, many brands in limited-service restaurants are pursuing outlet expansion as a means to achieve growth. As price increases have mostly reached their limit for consumers, brands are looking for additional ways to increase systemwide sales.
As inflation-tired consumers search for value, and have become increasingly selective about where they spend their dining-out dollars, limited-service brands are in hot competition for consumer spending. As part of this, restaurant brands are innovating their loyalty programmes to show consumers that eating at their restaurant regularly is rewarded with high value for money.
Labour shortages and increasing wages have been a challenge for restaurants for the past few years, but a law passed in September 2023 is poised to have a major impact on limited-service restaurants in the state of California and beyond. After years of negotiations, strikes, and lobbying, a law was passed in California that will set a USD20 minimum wage for fast food workers.
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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.
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