USA Food Service Industry

USA Food Service Industry Outlook from 2025 to 2035

According to the report, the USA food service industry which was valued at USD 1,121.4 billion in 2025 is expected to register a compound annual growth rate (CAGR) of 7.3% from 2025 to 2035 and reach USD 2,226.6 billion in 2035 These trends are backed by increasing disposable income, demand for on-the-go meals, and technology development in ordering platforms along with a consumer move toward convenient, experience-led dining.

Attributes	Values
Estimated Industry Size in 2025	USD 1,121.4 billion
Projected Industry Size in 2035	USD 2,226.6 billion
Value-based CAGR from 2025 to 2035	7.3%

In fact, several transformative trends shaping the USA food service landscape to drive the industry’s strong growth. At the forefront is digital transformation, as mobile ordering, AI-based personalization, and on-demand delivery platforms radically transform the way consumers interact with food service providers.

There’s also a marked trend toward health and sustainability within restaurants, as customers demand more organic, local and plant-based options, which have led to a flurry of menu innovations across restaurant chains.

Franchising expansion is still a prominent area for growth, as quick-service heavy hitters, like McDonald’s, Chick-fil-A and Subway, implement the same aggressive scaling strategies domestically and abroad. Added to this, the experience economy is also shaping people’s dining decisions, with hybrid businesses, those combining food and entertainment like Hard Rock Cafe and Dave & Buster’s, driving more consumer attention.

Finally, the rise of ghost kitchens and delivery-only concepts is reshaping operational modelsfor example, by reducing overhead costs and meeting demand for off-premise dining in an increasingly convenience-driven world. These dynamic changes are driving the positive outlook in USA food service demand growth through 2035.

Semi-Annual Market Update for the USA Food Service Market

In the table below, a comprehensive comparative analysis of six-month CAGR change in the base year (2024) and year on year (2025) for the USA food service market has been provided. This bi-annual direction gives a fair idea of the trending and the revenue patterns which help stakeholders understand the growth path at least on a yearly basis. H1 (first half of the year) refers to January-June and H2 (second half) is July-December.

H1 signifies period from January to June, H2 Signifies period from July to December

Industry analysts expect food and service industry growth in the first half of 2024 for the USA market will hit a CAGR of 6.8%, while step up in the second half of 2024 to 7.3%. In 2025, growth will accelerate to 7.4% in H1 and 7.5% in H2. The trend demonstrates a 60bp rise from H1 2024 to H1 2025 and a 20bp rise from H2 2025 compared to H2 2024.

These statistics reflect the fast-changing and transformative story of the USA food service system, driven by changing consumer preferences, the growth of digital technologies, ongoing innovation in delivery and off-premise formats, and other trends toward healthier and sustainable menus. This bi-annual dissection serves as a must-read for all players in the industry, as they seek to recreate their strategies based on growth patterns and capitalize on emerging opportunities in a dynamic competitive landscape.

Recent Developments

Date	Development / M&A Activity & Details
Jan-25	McDonald’s Introduces AI Drive-Thru Nationwide : McDonald’s completed rollout of AI-enabled voice ordering systems across 85% of its USA drive-thru locations to improve speed and personalization.
Nov-24	Yum! Brands Invests in Ghost Kitchen Expansion : Yum! Brands announced plans to double its USA ghost kitchen presence by 2026 to meet rising off-premise demand.
Aug-24	Chipotle Launches Fully Plant-Based Menu Pilot : Chipotle began piloting a fully plant-based menu in select California and New York stores to cater to sustainability-driven consumers.
May-24	Panera Bread Partners with Amazon for Smart Ordering : Panera integrated Amazon’s palm-recognition payment system for frictionless, personalized ordering at high-traffic urban stores.
Mar-24	Chick-fil-A Opens First Fully Digital Storefront : Chick-fil-A unveiled its first cashier-less digital-only location in Atlanta, focused solely on app and kiosk orders for efficiency.

Key Industry Highlights of United States Food Service Industry

Digital Transformation Revolutionizing Customer Experience

USA food service industry is going digital with heavy investments from corporations such as Starbucks, Wendy’s, and McDonald’s in AI-powered ordering and payment systems, mobile apps, and loyalty platforms. These innovations enhance operational efficiency and provide more tailored experiences. Automated kitchens and robotics are also coming into play more broadly, specifically within high-volume QSRs.

Emergence of Healthy Menus and Sustainable Methods

Increasing attention to health and sustainability is spurring restaurants around the country to reinvent their menus. Panera Bread and Sweet green, brands that put an emphasis on organic, plant-based and locally sourced ingredients. There’s also more transparency around nutrition labeling and sourcing practices, a response to growing consumer awareness around wellness and environmental impact.

An analysis of USA Food Service Categories by Product Type and Application Type

% share of Individual categories by Service Type and Catering Type in 2025

Drive Through Channel Gaining Traction in USA Plant-Based Creamers Market

Drive Thru services: The USA market is experiencing a considerable surge in plant-based creamer purchases. Driven towards convenience-led living, consumers are increasingly choosing the Drive Thru model as a go-to format for plant-based beverages, particularly coffee and tea with dairy alternatives, such as almond, oat and soy creamers.

Drive Thru channels have a projected 22% value share of the USA plant-based creamers market by 2035. The latest study provides a detailed summary of the growth of plant-based creamer market during 2023-2030, and the various reasons behind the growth such as increasing penetration of quick-service restaurants (QSRs) and coffee chains that are incorporating a large number of plant-based creamer varieties to meet the dietary preferences of vegan, lactose-intolerant, and clean-label consumers.

Moreover, the high convenience, quick service, and customized orders with plant-based offerings have relatively increased customer retention and repeat purchases in this segment. The Drive Thru trend is part of a bigger change in the USA toward better, more accessible, and more sustainable food and beverage solutions.

USA Plant-Based Creamers Market Records Significant Upsurge in Demand from the Healthcare Sector

The plant-based creamers market in USA is witnessing steady growth in healthcare sector due to increasing adoption of plant-based products in curb hospitals, rehabilitation centers and wellness facilities to improve the patients' and staff dietary preferences.

USA Plant-Based Creamers Market by Healthcare, by 2035 -Figure 41: USA Plant-Based Creamers Market by Healthcare, by 2035, Opportunity Analysis and Recommendation In 2035, healthcare segment is predicted to register a value share of 19% of the USA plant-based creamers market.

This is also a result of the increasing focus on nutrition-sensitive menus in health care institutions, with lactose-free, low-cholesterol and allergen-free alternatives at the forefront of offerings. Clean label features and functional health benefits enable plant-based creamers particularly oat, almond, and soy-derived drinks to become the default in hospital cafeterias and staff lounges. And as institutions strive for more sustainable and ethical food sourcing, plant-based creamers hit home with their environmental targets and wellness protocols.

Market Concentration and Competitive Landscape in the USA Food Service Industry

The landscape of the USA food service industry is largely defined by both multinational chains and smaller regional entities. The sector is dominated by fast-food giants like McDonald's, Subway and Starbucks, but smaller and independent operators keep expanding by serving niche markets and local tastes. This industry has high brand loyalty, has innovation in menus, and focuses more on delivery services and convenience.

But big companies have all the tools they need to keep their competitive advantage through advanced supply chain networks, extensive marketing campaigns, and technological integration (think mobile ordering and AI-driven personalization). The former are responding with consolidation, while the latter are striking to cash in on consumer trends around plant-based eating, sustainability and the popularity of food delivery platforms.

But it’s the delivery/takeaway services that have exploded in the past few years due to consumers’ desire for convenience. Moreover, growing focus on healthy alternatives and novel dining experiences add another layer of complexity to the competition.

Key Segmentation

By Service Type:

The market is segmented into Full-service Restaurants, Street/Kiosks, Cafes and Bars, Self-service Restaurants, Fast Food Outlets, Delivery/Takeaway, andRecreational Places.

By Delivery Method:

The industry is classified into Dine-in, Delivery, Online, Drive-Thru, and Takeout.

By Catering Type:

The industry includes Outdoor Catering (Away-from-home), Industrial Catering (Canteen, Cafeteria), Club Catering (Turf Clubs, Polo Clubs, Golf Clubs), Welfare Catering (NGO, Charity), Leisure Linked Catering (Kiosks, Zoos, Parks, Stadiums), Retail Store Catering, and Transport Catering (Airline, Railway, Cruise, Surface).

By End User:

The market is categorized into Corporate, Education, Healthcare, Defense & Offshore, Mining & EPC, Sports & Leisure, Event Management, and Others(including Retail, Manufacturing, and Aviation).