Market Segments
Related Amber Waves Articles
ERS research on foodservice outlets--facilities that serve meals
and snacks for immediate consumption on site (food away from
home)--examines the size of this growing market and the major
market segments such as fast food and full-service outlets (see Glossary).
A Large and Growing Market
The foodservice industry is nearly equal in size to food
retailing:
- The food marketing system, including food service and food
retailing, supplied about
$1.24 trillion worth of food in 2010.
- Of this total,
$594 billion was supplied by foodservice facilities.
Commercial foodservice establishments accounted for the bulk of
food-away-from-home expenditures in 2010 
. This category includes full-service
restaurants, fast food outlets, caterers, some cafeterias, and
other places that prepare, serve, and sell food to the general
public for a profit. Some are located within facilities that are
not primarily engaged in dispensing meals and snacks, such as
lodging places, recreational facilities, and retail stores.
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Schools and nursing homes are types of non-commercial
foodservice establishments. Such establishments are often called
"institutional" foodservice facilities.
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Full-service and fast food restaurants-the two largest segments
of the commercial foodservice market-account for about 77 percent of all
food-away-from-home sales .
Full-service establishments have waitstaff, and, perhaps, other
amenities such as ceramic dishware, nondisposable utensils, and
alcohol service. In contrast, fast food restaurants use convenience
as a selling point; they have no waitstaff, menus tend to be
limited, and dining amenities are relatively sparse.
Over the past few decades, the market for fast food has grown
more rapidly than that for food in full-service restaurants. As
part of their growth strategy, fast food companies built more
outlets closer to consumers' homes and work places to make it more
convenient for consumers to purchase meals and snacks. Many
restaurant companies opened outlets in nontraditional locations
such as department stores. In addition to convenience, a
household's demand for food-away-from-home is affected by its
income and demographic characteristics (see See The Demand for Food Away
From Home: Full-Service or Fast Food?).
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Any shift in market share between fast food and full-service
restaurants could influence the mix of foods and services offered
by both types of restaurants. For example, if trends favor
full-service restaurants, the market could shift to include more
full-service restaurants that offer a wider range of menu
selections and dining amenities. In response, fast food restaurants
might introduce comparable foods and services.