rowth in 2023, outpacing the rate of new outlets opening, which remained at 3 per cent growth. The report predicts that regular dining out will be off the menu for cost-conscious consumers until 2028. Home delivery is expected to continue to capture more share in the coming years due to continuous improvements in convenience and service while takeaway is already losing some of its gains after the pandemic.  The rapid growth of third-party delivery apps is also encouraging more consumers to have food delivered to enjoy a meal at home. By 2028, delivery is expected to account for 23 per cent of Asia Pacific food-service sales, compared to 21 per cent in 2023. The share of eat-in is expected to stick at around 60 per cent, with 66 per cent in 2023 and 67 per cent in 2028. More details Emil Fazira, food insight manager in Asia at Euromonitor International, said street stalls and kiosks buoyed overall industry growth during the 2019 to 2024 period with a 4 per cent CAGR in terms of value sales. “The convenient format of street stalls and kiosks allowed for more flexible transaction options, coupled with the rapid progress of digitalisation and online ordering or delivery,” she told Inside Retail. Similarly, limited-service restaurants drove growth for similar reasons, with many of them offering a diverse range of menu options that provided both indulgent and value options.  “Whilst seasonal or limited-edition meals helped to draw waves of higher spend, value options could be considered more comforting options to customers through economic challenges,” she added. These factors were particularly driven by chained operators who notably outpaced the growth of independents over the same period, by almost four percentage points.  Fazira said that food-service growth in Apac experienced its greatest impact from the pandemic in 2020, while economic challenges resulted in more prominent spending shifts in the years after. “In 2022, consumer habits started to shift in a massive way, with many tightening their purse strings and only spending on more novel experiences that benefited cafes and bars,” she noted. Delivery is here to stay Delivery services are continuing to be the preference of many consumers over dining in, and Fazira said that this is because delivery formats are more ubiquitous these days. These days, consumers can use a range of third-party apps with different loyalty programs too. Nonetheless, she expects many brands to put in efforts to upgrade their in-store efficiency and design to woo dine-in customers, whilst retaining their ability to fulfil remote orders and digital purchasing channels. “We can expect more unique dine-in concepts trialled by food services in the coming years, either through loyalty systems to encourage repeat patronage, or to lengthen customers’ time spent in store,” she explained. Fazira also expects a more seamless user experience merging consumer digital tools with enhanced back-end systems for quicker fulfilment and lifestyle integration. The coffee boom Interestingly, the report also stated that coffee and tea shops boomed as several global coffee chains entered Asia Pacific countries expanding rapidly, particularly in Southeast Asia; accounting for US$4.4 billion and set to grow further by an 8 per cent CAGR between 2023 and 2028.   In Singapore, China’s Luckin Coffee has expanded by more than 20 outlets in the space of less than a year. Other new names on the scene include South Korea’s Compose Coffee and Canada’s Tim Hortons.  Indonesia’s Kopi Kenangan made its debut in Malaysia and Singapore over the last two years with 50 outlets, offering complimentary vouchers and local espresso options. According to Nathanael Lim, beverage insight manager in Asia at Euromonitor International, in the post-pandemic era, the rise of regional brands such as Kopi Kenangan and Luckin Coffee have ambitious plans to expand their presence in the region. “They will be offering their products at affordable prices, and the strong financial backing of these coffee brands has also fuelled their expansion rapidly. Nonetheless, with many brands offering affordability, this is expected to impact the bottom line,” he told Inside Retail. Lim also explained that while international coffee chains such as Starbucks have introduced high-quality products from the Western hemisphere, Asian brands are creating more localised offerings for consumers who are seeking new flavours and experiences. “Coffee chains entering into the regional market have firstly established their outlets in locations in shopping malls where there is high footfall, this includes Luckin’s first promotion cup of coffee in Singapore at S$0.99,” he said. A balanced perspective According to Lim, the coffee shop chain marketplace in Apac will continue to be saturated and in terms of consumer preferences, he expects local flavours and cross-category flavours such as alcohol with coffee set to appeal to consumers seeking new experiences. “As regional coffee shops expand into new markets and channels, this will appeal to young consumers and new coffee drinkers due to their price point, convenience and wide range of flavours,” he added. Nevertheless, Lim believes that the challenges faced by these brands would include price competition in a saturated coffee market, as well as financial support as brands expand. He believes brands will have to constantly innovate, while constantly ensuring taste acceptability with affordable pricing to appeal to local consumers.   “Furthermore, providing options beyond takeaway to having dine-in as well as exploring new channels such as vending, drive-through and subscription services is set to provide greater convenience for consumers in the long term,” he concluded.