QSR falls behind full-service restaurants in Malaysia’s foodservice sector, report finds
The sector is forecast to recover strongly and grow to US$27.08 billion in 2025.
Malaysia’s QSR segment fell behind its full-service counterparts in terms of market share in lockdown-filled 2020, according to a new report from data and analytics company GlobalData.
Last year saw quick-service restaurants garnering a 24.5% market share in revenue, compared to a full-service restaurants’ 36.6%. Rounding up the sector were accommodations, and pubs, clubs, and bars with 8.3%, and 7.7% respectively.
Expecting economic rebound with an increase in transactions both from takeaway and dining out, GlobalData forecasts Malaysia’s foodservice sector to recover strongly and grow from RM64.9 billion (US$16 billion) in 2020 to RM109.08 billion (US$27.08 billion) in 2025 at a compound annual growth rate (CAGR) of 10.9%.
The industry growth is expected to recover with an increasing number of transactions as the economy recovers from the COVID-19 pandemic. Increasing takeaways and the rising demand for dining out will drive the profit sector growth in Malaysia in coming years.
The QSR channel also recorded the slowest decline amongst all the foodservice channels from 2015 to 2020 at a CAGR of just 0.05%, citing value for money products. In terms of outlets, QSR was the only channel that registered growth by a CAGR of 0.1% during the review period, on the back of expansion plans from leading chains.
In contrast, the full-service restaurant channel is forecast to lead the sector in the post-pandemic period at a CAGR of 11.5%, benefiting from the growing consumer preference for home deliveries and takeaways. The channel is also expected to record a transaction growth of 5.9% from 2020 to 2025.
“Malaysia’s foodservice profit sector registered sales decline mainly due to [a] fall in [the] number of transactions across all channels, except QSR and FSR. However, the pandemic and restrictions on movement accelerated growth in food ordering through online platforms in order to avoid visiting public places,” GlobalData consumer analyst Bijayalaxmee Pradhan said.
“Operators need to innovate the menu options by following food trends such as plant-based, meat-free options to stay relevant among the consumers. Further, technology can be utilized to get closer to consumers with concepts such as contactless ordering and payments,” he added.
