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Fast-Food Franchises in the UK - Market Research Report (2014-2029)

Adriana De Azevedo Adriana De Azevedo London, United Kingdom Last Updated: October 2024 SIC SP0.253

Revenue

£12.4bn

2024-25

£12.4bn

Past 5-Year Growth

Profit

£X.Xbn

Employees

235k

Businesses

147

Wages

£X.Xbn

Fast-Food Franchises in the UK industry analysis

The Fast-Food franchise industry has been influenced by changing consumer preferences and the convenience of online food ordering. Demand for cheaper, on-the-go food is boosting sales of fast-food chains. Fast-food establishments have had to adapt to changing consumer tastes and rising health consciousness by introducing healthier options in their menus and vegetarian and vegan offerings to capture booming demand. The rise of vegetarianism and veganism has helped smaller franchises that focus on serving these niche markets, but more traditional chains have also innovated and expanded their menu offerings. Revenue is expected to inch up at a compound annual rate of 0.1% over the five years through 2024-25 to £12.4 billion, including forecast growth of 3.9% in 2024-25.

Trends and Insights

  • Supply disruptions hike input prices and weigh on profitability. The Russia-Ukraine conflict has disrupted supply chains and increased food and energy prices. This has squeezed fast-food establishments' profit margins as they absorb higher costs amid fierce price competition.
  • Revenue from off-site consumption is rising. This is partly due to the surging popularity of online delivery platforms. Busy consumers often grab a meal for takeaway, while those without skills to cook can order a quick meal for delivery.
  • London presents a significant opportunity for fast-food franchises. This is due to the high population level, meaning a wider customer base. A large number of workers commuting into London from nearby regions further boosts fast-food demand.
  • Fast-food franchises mainly compete on price and quality. Consumers will choose the most affordable option that does not compromise on quality. Therefore, a balance between the two is essential for a fast-food franchise to succeed.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 0.1 % over the past five years, to reach an estimated £12.4bn in 2024.

Trends and Insights

The introduction of more vegan and vegetarian food boosts sales

  • Vegetarianism and veganism have become increasingly prominent across the UK. According to a study by Finder, in 2023, the number of vegans in the UK grew by 1.1 million to 2.5 million. This trend is giving rise to smaller fast-food chains focusing on serving these markets over more traditional fast-food chains that predominantly serve burgers and pizzas.
  • Additional trends and insights available with purchase
Fast-Food Franchises in the UK
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Changing consumer tastes provide an opportunity for some operators

  • Rising health consciousness will prompt fast-food chains to tweak menus, introduce foods that are low in fat and increase their offerings of vegan and vegetarian options to please changing consumer preferences.

Biggest companies in the Fast-Food Franchises in the UK

Company
Market Share (%)
2025
Revenue (£m)
2025
McDonald's Restaurants Ltd
4,909.9
Yum! Restaurant Holdings
2,140.0
Domino's Pizza Group plc
1,536.8

To view the market share and analysis for all 5 top companies in this industry, view purchase options.

Products & Services Segmentation

Fast-Food Franchises in the UK
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Food for off-site consumption, Food for on-site consumption and Beverages. Food for off-site consumption is the largest segment of the Fast-Food Franchises in the UK.

Trends and Insights

The boom in online ordering and delivery and workers' return to offices boost off-premises meals

  • Customers can order and collect off-premises meals either by walking in, placing an order online or using third-party delivery companies like Deliveroo and Uber Eats.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

This industry includes franchised fast-food restaurants where patrons pay before eating. Purchases may be consumed on-site, taken out or delivered. Most franchises also sell beverages like water and fizzy drinks, but don't offer alcohol.

What's included in this industry?

Food for off-site consumptionFood for on-site consumptionBeverages

Companies

McDonald's Restaurants LtdYum! Restaurant HoldingsDomino's Pizza Group plc

Purchase this report to view all 5 major companies in this industry.

Related Terms

FAST FOODFRANCHISORFRANCHISEE

Industry Code

SIC 2007

SIC 56.10/1 - Fast-Food Franchises in the UK

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Supply disruptions hike input prices and weigh on profitability. The Russia-Ukraine conflict has disrupted supply chains and increased food and energy prices. This has squeez...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Revenue from off-site consumption is rising. This is partly due to the surging popularity of online delivery platforms. Busy consumers often grab a meal for takeaway, while t...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

London presents a significant opportunity for fast-food franchises. This is due to the high population level, meaning a wider customer base. A large number of workers commuti...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Fast-food franchises mainly compete on price and quality. Consumers will choose the most affordable option that does not compromise on quality. Therefore, a balance between t...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

McDonald's is aiming to be perceived as healthier. The company has innovated and expanded its menu to include healthier items and is investing heavily in food quality to impr...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of McDonald's Restaurants Ltd's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Yum! Restaurant Holdings's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Domino's Pizza Group plc's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 2 additional companies

Detailed analysis

  • Description and key data for McDonald's Restaurants Ltd, and factors influencing its performance in the industry
  • Description and key data for Yum! Restaurant Holdings, and factors influencing its performance in the industry
  • Description and key data for Domino's Pizza Group plc, and factors influencing its performance in the industry
  • Description, key data and performance trends for 2 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Average weekly hours of work are rising. Consumers who have busier lifestyles, work longer hours and have less time to cook are more likely to demand fast food. Fast-food cha...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Profit is being constrained by heightened inflation. Supply chain disruptions and higher food and energy prices are hindering profitability. However, inflation is showing sig...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Liquidity Ratios (2018-2022)
  • Coverage Ratios (2018-2022)
  • Leverage Ratios  (2018-2022)
  • Operating Ratios (2018-2022)
  • Assets (2018-2022)
  • Liabilities (2018-2022)
  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Fast-Food Franchises in the UK industry in United Kingdom in 2024?

The market size of the Fast-Food Franchises in the UK industry in United Kingdom is £12.4bn in 2024.

How many businesses are there in the Fast-Food Franchises in the UK industry in 2024?

There are 147 businesses in the Fast-Food Franchises in the UK industry in United Kingdom, which has grown at a CAGR of 2.2 % between 2019 and 2024.

Has the Fast-Food Franchises in the UK industry in United Kingdom grown or declined over the past 5 years?

The market size of the Fast-Food Franchises in the UK industry in United Kingdom has been growing at a CAGR of 0.1 % between 2019 and 2024.

What is the forecast growth of the Fast-Food Franchises in the UK industry in United Kingdom over the next 5 years?

Over the next five years, the Fast-Food Franchises in the UK industry in United Kingdom is expected to grow.

What are the biggest companies in the Fast-Food Franchises in the UK market in United Kingdom?

The biggest companies operating in the Fast-Food Franchises market in United Kingdom are McDonald's Restaurants Ltd, Yum! Restaurant Holdings and Domino's Pizza Group plc

What does the Fast-Food Franchises in the UK in United Kingdom include?

Food for off-site consumption and Food for on-site consumption are part of the Fast-Food Franchises in the UK industry.

Which companies have the highest market share in the Fast-Food Franchises in the UK in United Kingdom?

The company holding the most market share in United Kingdom is McDonald's Restaurants Ltd.

How competitive is the Fast-Food Franchises in the UK industry in United Kingdom?

The level of competition is high and increasing in the Fast-Food Franchises in the UK industry in United Kingdom.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • Full-Service Restaurants in the UK
  • Takeaway & Fast-Food Restaurants in the UK
  • Food-Service Contractors in the UK
  • Pubs & Bars in the UK
  • Pizza Delivery & Takeaway in the UK
  • Cafes & Coffee Shops in the UK
  • Food Markets in the UK

Complementors

  • Digital Advertising Agencies in the UK
  • Fruit & Vegetable Wholesaling in the UK
  • Meat Wholesaling in the UK
  • Dairy Product, Egg & Edible Oil Wholesaling in the UK
  • Juice, Mineral Water & Soft Drink Wholesaling in the UK

International industries

  • Global Fast Food Restaurants
  • Fast Food Restaurants in Canada
  • Fast Food and Takeaway Food Services in Australia
  • Fast Food and Takeaway Food Services in New Zealand
  • Restaurants and Takeaways in Ireland

View all industries in United Kingdom

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in the UK include:

  • Office for National Statistics
  • Office for Budget Responsibility
  • Bank of England

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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