Fast Casual Restaurants - US - August 2007

Abstract

This report provides the reader with statistics and insights about the fast casual category that can help a market player do the following: stave off competition from other foodservice segments; retain core customers, increase their frequency of use; attract new customers; make new product development decisions; and create meaningful marketing messages and dynamic ad/promotional campaigns.

Some specific issues and questions addressed in the report include:

• Which fast casual segment (bread-based, traditional, or ethnic) is growing the fastest and why?
• Has the segment connected with the Hispanic consumer and why?
• Which of the top chains is setting trends, and how does its menu reflect growth potential?
• Which chain carries momentum in terms of unit growth or sales per unit?
• How well is fast casual positioned to weather negative economic pressures?

The report also offers analysis and strategies to:

• Grow sales in the face of QSR premium menu and décor upgrades
• Leverage expanding late-afternoon and evening meal presence
• Address the threat of ready-to-eat meals
• Convert the less frequent user

This report is the result of synthesizing multiple resources including sales data, consumer data from an exclusive Mintel study, and Mintel Menu Insights, which provides flavor, ingredient, preparation, and price trend analysis, drawing from the largest 350 chain restaurants, as well as 150 independent restaurants, 50 restaurants run by top chefs, and 25 beverage-focused restaurants.

With a 2004-06 compound annual growth rate of 16.2% in current prices, the fast casual restaurant segment has positioned itself as the growth leader within the restaurant industry. Sales have been driven by the segment' s cross-cultural appeal, its healthful image, trend-setting décor, and menu innovation.

For the purposes of polling respondents, Mintel described a fast casual restaurant as “a restaurant where you order at the counter, but whose menus and ingredients often differ from those at a traditional fast food restaurant (such as McDonald' s, Burger King, or Subway). A fast casual restaurant can be an independent restaurant or a chain.”