The foodservice profit sector in Malaysia will grow at a compound annual growth (CAGR) of 8.9 percent by 2026, according to leading data and analytics company GlobalData.
In 2021, the sector was MYR62.9 billion ($15.2 billion) and by 2026 will be MYR96.1 billion ($23.5 billion), driven by a rebound in consumer confidence.
The profit sector revenue registered a negative CAGR of 4.4 percent in the period 2016-21 due to a decrease in the number of transactions and the number of outlets. In 2020, profit sector channels were either operating under restrictions or were closed due to the outbreak of the Covid-19 pandemic, leading to decreased dine-in occasions in the sector. The outbreak of the Delta variant of Covid-19 in the second half of 2021resulted again in the implementation of lockdown restrictions on restaurants; reduced tourist footfall; and increased health and safety concerns.
Full-service restaurants (FSR) remained the largest foodservice profit sector channel in Malaysia in 2021, accounting for 39.8 percent of the total profit sector revenue. This channel had seen a decline at a CAGR of 2 percent during 2016-21. The travel and leisure channels recorded negative CAGRs of 24.2 percent and 17 percent during the 2016–21 period, respectively, due to a drop in tourism activities amid periods of lockdown.
Yum! Brands Inc. was the leading quick service restaurant (QSR) operator in 2021 with 718 outlets. In November 2021, Yum! chicken restaurant brand KFC introduced its limited-edition Ayam Pedas Nyonya to offer a ‘unique collision’ of different local flavours with a KFC twist to celebrate the Malaysian Peranakan Heritage and showcase KFC’s commitment towards local heritage. Operators' initiatives to constantly expand their menus to include a wider variety of item helps to attract consumers.
All foodservice profit sectors channels in Malaysia are expected to experience growth in outlet count during 2012-26, with travel estimated to record the strongest increase in value at a CAGR of 39.5 percent.
