Quick service restaurants (QSRs) and food kiosks are set to drive growth in the Philippine foodservice industry in 2026, as consumers prioritize affordability, convenience, and speed, according to the Foreign Agricultural Service (FAS) of the US Department of Agriculture.
FAS said limited-service restaurants, commonly known as QSRs, continue to expand aggressively, opening new outlets nationwide and strengthening their market dominance.
The segment posted 5 percent growth, even as full-service restaurants recorded a 2 percent decline. Despite this dip, full-service operators are still expected to register modest gains in 2026.
Most Filipino diners continue to favor limited-service formats, which account for the bulk of industry sales. Their appeal lies in value-for-money pricing, fast service, accessible locations, and diverse menus. Street stalls and food kiosks are also contributing to momentum, recording 1 percent growth, supported by steady demand for quick, low-cost meals.
FAS noted that restaurant chains—particularly QSRs—are outperforming independent outlets, offsetting cautious consumer spending and rising operating costs. Growth is being fueled by new store openings, the entry of international brands, acquisitions, and strong partnerships with online delivery platforms.
Drive-thru QSRs, kiosks, and street stalls remain popular among commuters, while students continue to boost demand through frequent visits to QSRs, cafés, and school canteens. Online food delivery via platforms such as GrabFood and Foodpanda is gaining traction, especially beyond Metro Manila, supported by the Philippines’ high social media usage.
FAS Manila projects limited-service restaurant sales to grow at a 10 percent CAGR to USD12.8 billion by 2029, with outlets rising to 29,279. Chicken-focused QSRs lead the charge, alongside Filipino, Asian, bakery, burger, and convenience store concepts.
Street stalls and kiosks are forecast to reach USD2.1 billion in sales by 2029, driven by milk tea, grab-and-go coffee, franchising, and digital payments, with players like Jollibee Foods Corp., McDonald’s, Potato Corner, and Angel’s Burger at the forefront.
