Leading fast casual dining chains have seen growth in sales during the last three years, despite the recession and other economic issues in the United States. Total visits grew 17 percent as other dining sales fell, demonstrating the resilience and popularity of the fast casual category of restaurants. Information gathered by the NPD Group, a market research company, shows that the reliability and name recognition of chains also helped these restaurants grow during a trouble time.
Fast casual is defined by quick delivery in a upscale environment, with higher quality service and food. Checks are larger than a fast food restaurant, but not as high as a more traditional full service restaurant. Consumers choose fast casual when they’d like something better than fast food, but less expensive or time consuming than a full restaurant. Noodles & Company, Panera Bread, Chipotle Mexican Grill and Five Guys Burgers and Fries are all good examples that grew 6% or more in 2010. The total restaurant industry saw a decline of 1% in visits.
These chains offer quality at a lower price point than other restaurants without sacrificing service. This appeals to many customers who enjoy eating out, but need to follow a stricter budget than three or four years ago. Many families can afford a fast casual meal who can’t handle the larger check of a full service restaurant. Due to their growing popularity fast casual restaurants have expanded 12% since 2007. The NPD’s report on the future of foodservice predicts that the demand for these restaurants will continue to grow. Teenagers who are frequently the more affordable fast casual chains now will continue to visit as they age and bring their children. Young adults will also develop brand loyalty now that will feed many chain brands for decades into the future.