What is QSR? All About Quick Service Restaurants

Most Americans eat fast food one to three times a week, spending an average of 10% of their annual income on fast food. The regular consumption of fast food is also growing at a rate of 2.2% each year. 

Quick service restaurants (including fast food) remain a staple for American dining habits. But what really is a quick service restaurant—or QSR? Is it all about speed and convenience?

Today, QSRs go beyond just the idea of a quick service. This restaurant type is reshaping the food industry as a whole, adapting to ever-changing consumer preferences at a rapid pace. Let’s take a deeper look.

Quick service restaurant meaning: What is QSR? 

First and foremost, what is QSR? QSR stands for quick service restaurant—it’s a type of fast food restaurant that offers quick meals at an affordable price. When thinking of traditional fast food, you’re probably thinking of McDonald’s, Wendy’s, and KFC as examples, but quick service restaurants can also include a broader variety of places like Starbucks, Chipotle, and Domino’s. 

Some defining characteristics of QSRs include:

Standardized menus – QSRs typically offer a standardized menu, consistent across all different locations. This helps maintain the brand’s identity, so customer expectations can be met each time. While there may be options to customize meals, it’s typically limited to adding or removing certain ingredients. 

Affordable pricing – Quick service food is generally much more affordable than food from a full-service restaurant. You’re typically able to purchase a meal for under $10, and you’re also not as obligated to tip, which can make a big difference on the bill. 

Speedy preparation – Meals from quick service restaurants are prepared (to no one’s surprise) quickly. The minimal wait time can be a value proposition for customers looking to grab a fast bite. According to one report from Statista, Taco Bell has the quickest drive-thru speed out of 10 selected QSRs. At 222 seconds, it beats out Dunkin’ (238 seconds), KFC (239 seconds), and Arby’s (261 seconds).

Limited service – There is minimal interaction between customers and workers at QSRs. While counter service is available for ordering, self-ordering (either through a kiosk or app) is growing in popularity. 

Limited dine-in – Many QSRs do have dine-in options, but takeout (and turnover) are heavily prioritized. The seating areas are often kept simple and functional rather than designed for long stays with friends. 

Drive-thru & delivery options – With prioritization on takeout orders, drive-thru and delivery options are key characteristics of many QSRs. Some establishments also offer curbside pickup—and partnerships with third-party delivery apps like Uber Eats and DoorDash are common—making it even more accessible for customers on the go.

App-based loyalty – App-based loyalty programs are huge for quick service restaurants. One study found that 51% of diners now use a loyalty program, with 49% participating in programs from QSRs. Beyond just rewarding customers, these apps provide added convenience and the ability to order ahead.

Extended hours – QSRs commonly operate during extended hours, with some even offering 24-hour service. This helps cater to busy customers during the day or those with spontaneous fast food cravings late at night. 

Franchise models – You’ll notice that many QSRs fall under a franchise model (or they’re corporate-owned chains). As mentioned with standardized menus, consistency across different locations helps set customer expectations from restaurant to restaurant.  

QSR vs. fast food vs. fast-casual

All fast food restaurants technically fall under the quick service umbrella—customers receive affordable meals at minimal wait times with limited service. However, not all quick service restaurants follow the traditional fast food approach. Some, like fast-casual restaurants, prioritize higher-quality ingredients at higher prices for a more elevated dining experience.

While most QSRs fall either into the fast food or fast-casual restaurants category, the term can be used to describe a broader range of establishments. Say coffee shops, bakeries, food trucks, and pizza chains––these can also be considered quick service establishments. 

QSR brands: Top quick service restaurants

Each year, QSR Magazine reveals the top 50 quick service restaurants in the United States, ranked based on sales. Here are the top 10 brands for 2024, along with their U.S. sales in 2023:

 

 

The publication also recognizes the top-growing QSR brands for the year from the pool of submissions. Here are the ones that came out on top, along with their U.S. sales in 2023:

 

 

And segmented by types, here’s what QSR Magazine reports in the top three for each in 2024:

 

 

Aside from the big-name national brands, many QSRs exist as regional favorites, more well-known to locals. Some examples include Mandy’s Gourmet Salads in Toronto and Montreal, gusto! in Atlanta, and Xi’an Famous Foods in NYC.

The (quick) history of quick service restaurants

What we know as the QSR industry today has come a long way from its origins. Believe it or not, quick service restaurants didn’t always operate with self-serve kiosks, drive-thru lanes, and Uber Eats partnerships in mind. 

According to Square, the first known instance of what would later become the QSR model came from Ancient Rome—where street vendors created stationary food carts so people could purchase food and beverages to go. 

Then came the first official fast food restaurant. Many historians agree White Castle was first as Walt A. Anderson and Billy Ingram had a vision to take food stands to another level. In 1912, the founders decided to change the public perception of hamburgers––which at the time were considered low-quality food, made from slaughterhouse scraps––in Wichita, Kansas. 

In 1940 came the name we know all too well: McDonald’s. Then, a few more followed: In-N-Out (1948), Burger King (1954), and Wendy’s (1969). In-N-Out helped revolutionize the drive-thru model, allowing customers to place intercom orders without having to leave their cars. And shortly after, more and more chains started to do the same.

Notably, fast food was heavily focused on the classic burgers and fries combo. But as consumer preferences changed, so did the industry––Taco Bell emerged in 1962, bringing Mexican-inspired fast food, followed by Subway in 1965, introducing a healthier, customizable alternative with made-to-order sandwiches.

As demand for more premium options grew, the fast-casual restaurant segment was also born. Chipotle was founded in 1993 after Steve Ells observed the efficiency of a quick-service, counter-ordering system at a restaurant in San Francisco. This model—blending the speed of fast food with higher-quality ingredients and customizable meals—sets the stage for the modern fast-casual movement.

The pandemic effect on quick service restaurants

While quick service restaurants were already on the rise before COVID-19, the pandemic had a lasting impact on the restaurant type’s evolution. As full service restaurants faced immense challenges, quick service spots showed greater economic resilience, largely due to one factor: drive-thrus.

As drive-thrus continue to be a non-negotiable for many customers in the post-pandemic world, that’s not the only change. App-based loyalty is also a big one as Danny cites the immense growth McDonald’s and Chipotle saw through their loyalty programs during the pandemic. With apps, customers can also order ahead, providing even more convenience—a key selling point of QSR food.

The QSR growth outlook & industry trends

Today, there are about 200,000 quick service restaurants across the United States. In 2024, the American QSR market was valued at $295 billion. This year, it’s projected to reach $301 billion. And by 2034, it’s expected to hit a staggering $508.6 billion––at a compound annual growth rate of 5.6%.

Alongside the ability to adapt, the growth of the QSR industry is largely attributed to its cost advantage. In 2024, full service establishments experienced an inflation rate of 4.3%, while quick service establishments were able to keep prices slightly lower at 3.6%. The low cost of fast food—paired with the high cost of everyday living—makes QSRs an attractive choice for cash-strapped customers.

Labor costs are also much lower when comparing quick service to full service restaurants. Since 2017, labor costs have grown by 73.9% for full service spots. Quick service, on the other hand, saw an increase nonetheless—but at a much lower rate: 60.2%. As less staff is required for operations to run, this doesn’t come as a surprise. 

With the industry expanding so rapidly, quick service restaurants are innovating to keep up with shifting consumer expectations. Here are some key QSR trends to watch for the future: 

Extended ordering channels – QSRs continue to prioritize efficiency with the adoption of technology, especially when it comes to ordering channels for customers. QU Beyond found that 44% of brands planned to add kiosks for ordering in 2024, along with the following:

Healthier menu options – As the younger generation continues to increase spending power, restaurants will need to adapt to their preferences too––enter: the fast-casual movement. Health-conscious meals are at the forefront of Gen Z and Millenials’ minds. One report from GlobeScan found that 27% of Gen Z and Millennials eat plant-based food most or all of the time. Another study found that the QSR market could make an extra $44 billion, simply by adding more health-conscious meals to the menu—Americans are willing to pay up to 15% more for a healthier fast food option.

Sustainability efforts – Burger King has plans for net zero emissions by 2050, while Wendy’s has plans for 100% sustainable materials on all consumer-facing packaging by 2026. Sustainable meals, including those made from locally sourced ingredients, are also rising in popularity. Many QSRs are adopting these efforts to not only reduce their environmental impact but also align with consumer values. The eco-conscious movement may benefit the bottom line of QSRs in the long run as younger consumers are willing to pay 20% more for the sustainability factor. 

Quick service restaurant (QSR), summarized

Quick service restaurants (also known as QSRs) offer speedy meals at an affordable price. Other characteristics of QSRs include standardized menus, limited service, and a focus on convenience––with drive-thru, delivery options, and extended opening hours.

Fast food and fast-casual restaurants are considered QSRs, but the QSR umbrella can also include establishments, outside of these two categories: coffee shops, pizza chains, food trucks, and more. Based on U.S. sales volume, the top QSR for 2024 is McDonald’s, while the top-growing one is Cava. 

Quick service restaurants don’t just offer a quick service—they’re also quick to adapt. When the COVID-19 pandemic hit, these establishments were more economically resilient due to their big focus on drive-thru takeout. And as consumer preferences continue to evolve, we can expect QSRs to adopt more technological advancements, healthy menu options, and sustainable practices.