QSR Growth In 2025 Led By Chicken Coffee And Mexican Chains

QSR growth in 2025 is led by chicken coffee and Mexican chains, but visit declines per location raise oversaturation concerns.
QSR growth in 2025 is led by chicken coffee and Mexican chains, but visit declines per location raise oversaturation concerns.
  • Coffee, chicken, and Mexican-inspired QSR chains outpaced other limited-service categories in visit growth during the first half of 2025, thanks to customizable formats and protein-forward menus.
  • Visits per location declined across all major QSR segments, signaling potential overexpansion and weakening per-unit performance.
  • Summer softness and August declines underscore consumer caution, highlighting the importance of sustainable, demand-driven growth strategies.
Key Takeaways

QSR operators have faced mounting challenges in 2025, from inflationary pressures to shifting consumer spending habits. While overall traffic has softened across the industry, coffee, chicken, and Mexican-inspired brands have emerged as relative bright spots, reports Placer.ai.

Coffee, Mexican-Inspired and Chicken Outperform Limited Service Concepts

These categories appear to be benefitting from consumer demand for affordable, customizable, and protein-rich options. Coffee has remained resilient as a daily ritual. Chicken and Mexican chains, meanwhile, have leaned into fast, flexible menus. These offerings continue to resonate with cost-conscious diners.

Visit Growth VS. Visit Efficiency

While overall visits to these categories were up, the story changes when looking at per-location traffic. Across the board — including the high-performing categories — visits per store declined, indicating that unit expansion may be running ahead of demand.

This disconnect suggests a looming risk of saturation. Operators pushing aggressive growth strategies without corresponding demand could see diminishing returns at the store level, despite positive headline traffic numbers.

August Numbers Reflect A Cautionary Trend

After solid performance in the first half of the year, traffic began to slow in July and August. The decline was especially noticeable for chicken and Mexican QSRs. By August, visit declines were broad-based, and chicken chains experienced a steep drop in per-location traffic. Coffee was the only major segment to sustain growth through the summer.

Limited-Service Dining Sees Broad Traffic Declines in August 2025

This pullback coincides with continued economic uncertainty. It points to growing consumer hesitancy to spend, even in traditionally budget-friendly QSR categories.

What’s Next

Despite near-term volatility, consumer preferences for convenience, customization, and value remain clear. As the economy stabilizes, QSR brands that resist overexpansion will be better positioned for long-term success. Focusing on menu innovation, digital loyalty, and operational efficiency can help them capture renewed traffic.

Operators who can drive higher productivity per store and build brand affinity are likely to outperform — especially when demand begins to rebound in a more stable economic environment.

Bottom Line

Coffee, chicken, and Mexican-inspired QSRs are leading category growth in 2025. However, the industry’s next chapter will depend on smart scaling and sustainable operations—not just adding more locations.

This content is republished with permission from Placer.ai. The original article can be found here: https://www.placer.ai/anchor/articles/what-are-the-fast-growing-qsr-categories-in-2025

RECENT NEWSLETTERS
View All
CRE Capital Markets Gain Momentum Heading Into 2026
CRE Capital Markets Gain Momentum Heading Into 2026
November 7, 2025
READ MORE
What Mayor Mamdani’s Win Really Means for CRE
What Mayor Mamdani’s Win Really Means for CRE
November 6, 2025
READ MORE
U.S. Industrial Softens as Vacancies Rise and Tax Shifts Reshape Manufacturing
U.S. Industrial Softens as Vacancies Rise and Tax Shifts Reshape Manufacturing
November 5, 2025
READ MORE
New Apartments Still Command a Premium in Competitive Markets
New Apartments Still Command a Premium in Competitive Markets
November 4, 2025
READ MORE
A Decade of Access: How Crexi Transformed CRE
Q325 Burns + CRE Daily Fear and Greed Index
CRE Daily - No Cap

podcast

No CAP by CRE Daily

No Cap by CRE Daily is a weekly podcast offering an unfiltered look into commercial real estate’s biggest trends and influential figures.

Join 65k+
  • operators
  • developers
  • brokers
  • owners
  • landlords
  • investors
  • lenders

who start their day with CRE Daily.

The latest news and trends in commercial real estate delivered to your inbox. Get smarter about what matters in just 5-minutes or less.