Food service or catering service industry includes all firms that engage in serving meals which are prepared outside homes such as restaurants, school and hospital cafeterias, and catering outlets. Mobile food service such as food trucks industry is also growing in developing countries on the back of rising penetration of quick service restaurants. Globally, restaurant industry sales reached USD 781.2 billion in 2017, a 4.5% growth as compared to the sales of USD 766.4 billion in 2016. While restaurant operators are optimistic about the future growth and sustainability of their business, challenges related to government regulatory and rising labors costs are creating a huge pressure on the industry players. In United States, recruitment and retention of employees is becoming a major challenge for the restaurant players. However, technology implementation helps the food service industry players to grow significantly, but the process is not without barriers. High cost investment for advanced infrastructure still remains a significant challenge for the food chain operators.
Goldstein Research analyst forecast that global food service industry size is expected to reach USD 4.5 trillion by 2024 out of which APAC is anticipated to hold the market share of nearly 40% and expanding at a CAGR of 5.3% over the forecast years. Positive growth in travel and tourism industry on the back of economic stability in developed countries leads to the expansion of hospitality and food industry in these regions. With the increasing number of quick service restaurant chains, organized food junctions and food points, the pressure on the hospitality industry has increased related to the quality and service. Global restaurant industry revenue reached USD 781.2 billion in 2017 from USD 379.0 billion in 2000, almost double growth in 17 years.
