FOOD SERVICE sales in the Philippines are projected to increase 10% in 2026 to $15.4 billion, building on the sector’s recovery to pre-pandemic levels in 2025, according to the US Department of Agriculture (USDA).
In a report, the USDA said food service revenue in 2025 was estimated to have risen 8% to $14 billion from $13 billion in 2024. If realized, this would bring industry sales back to the levels recorded in 2019, before the COVID-19 (coronavirus disease 2019) pandemic.
For 2026, sales of full-service restaurants are projected to increase 3.23% to $2.18 billion.
The projected growth in full-service restaurant sales is attributed to the arrival of new international entrants, the development of innovative restaurant concepts, and increasing consumer demand for unique dining experiences.
The sales of limited-service restaurants are also projected to rise 10.23% to $9.52 billion this year.
According to the USDA, chicken-focused chains are driving growth in the limited-service sector. Asian, including Filipino, limited-service restaurants, as well as bakery, burger, and convenience store formats, are also showing strong performance.
The sales of street stalls and kiosks are also expected to grow 4.68% to $1.97 billion this year.
“Fueled by strong demand for quick, affordable food and beverage options, the enduring popularity of milk tea and grab-and-go coffee kiosks, and the widespread adoption of franchising models enable rapid expansion,” the USDA said.
Sales of cafés and bars are projected to rise 7.13% to $1.74 billion this year. If realized, this would represent a rebound from the 5.9% decline in sales last year.
According to the USDA, growth in the café and bar sector is driven by rising consumer mobility, the popularity of specialty coffee and tea shops, and the rising demand for innovative beverages and café experiences. — Vonn Andrei E. Villamiel
