Louisville / KY. (fca) Fast casual chains offer higher-quality ingredients than are typically found in fast food but at a lower price than at sit-down restaurants. In 2008/2009 they grew in the United States a sizzling 63,3 percent – according to a study commissioned by the Fast Casual Alliance, a Kentucky-based group of industry executives. That compares with a 1,2 percent dip in 2008 inflation-adjusted restaurant sales overall, the first such drop in nearly 20 years, according to the National Restaurant Association.
As the Great Recession of 2008/2009 wrecked household budgets, consumers turned to fast casual «as a value-centered way to continue to eat out», says Paul Barron, publisher of FastCasual. He is also chairman of the Fast Casual Executive Summit, an industry think tank to talk about the future of the segment.
The reason for the growing popularity of chains such as market leader Panera Bread of St. Louis and Beaumont-based Jason´s Deli is simple: «The value proposition – high-quality food and a high-quality experience for a much lower cost. It matches so closely with what the consumer is dealing with in today´s economy», Barron said. Another reason for the higher sales is that many fast casual chains that were launched in the years leading up to the recession have continued to add outlets. The segment has been the darling of the restaurant industry for more than five years, posting annual high growth rates.
That is in part because of the segment´s small size relative to the industry as a whole. With overall «eating and drinking places» posting 386,5 billion USD in 2008 sales, even a robust year yields small percentage gains. By comparison, fast casual sales last year were an estimated 16 billion USD, according to the Alliance report, based on a study from the research firms Technomic Inc. and Food Action Group. According to the report, segment sales are expected to reach 20 billion USD this year, a gain of 25 percent (source).
OTHER TOPICS FROM THIS SECTION FOR YOU:
- Mainstreaming sidestreams: Food products made from salmon
- StrongPoint: installs AutoStore with deep-freeze zone
- Bezos Centre for Sustainable Protein Opens at NU Singapore
- VTT: How to turn captured carbon dioxide into plastic?
- Enifer Oyi: The first factory is now fully funded
- How AI’s efficiency can be optimised in the gastronomy
- Tender Food: successfully closes Series A funding
- Aramark: now lets autonomous floor cleaning robots do the work
- Santander Bank: opens another »Work Café« in Florida
- Ülker: accelerates digitalization and tech investments
- Enifer Oyi: secures 36 million euro funding package
- Coop: Tomatoes from Sweden no longer a rarity
- Fossil-free transport: ICA takes a step forward with hydrogen gas
- Lantmännen Group: in talks on Food Strategy 2.0
- Växthuset: Business-driven and circular ideas in focus
- BBU: Commences Multi-Site Microgrid Energy System
- Chipotle: Doubles Commitment To Cultivate Next Venture Fund
- Bühler: brings the entire protein value chain under one roof
- Oterra A/S: forms pioneering partnership with Vaxa Technologies
- Conagra Brands: Uncovers Hottest Frozen Food Trends