Global Fast Casual Restaurants Market Grows Significantly at a CAGR of 10.2%

Introduction

Fast-casual restaurants emerged in the late 90s but gained significant popularity in 2009. They differentiate themselves from fast-food establishments by preparing fresh food rather than relying on assembly-line methods. Fast-casual restaurants prioritize high-quality ingredients, sourcing locally and offering fresh and organic options. While their prices are higher than fast-food chains, they remain more affordable than fine dining establishments. Fast-casual restaurants have captured consumer attention by focusing on fresh ingredients, healthier menu choices, and customizable options to meet evolving preferences. The primary objective is to incorporate high-quality ingredients such as locally sourced produce and sustainable proteins to craft flavourful and nutritious meals. This shift towards fast-casual dining reflects consumers' desire for convenient yet health-conscious options beyond traditional fast food.

Market Dynamics

Changing Consumer Preference Increasing Preference Towards Fast-Casual Restaurants

The rise of fast-casual restaurants can be attributed to the changing consumer preferences towards a healthier lifestyle. Fast-casual restaurants have become increasingly popular, emphasizing healthy, natural, and freshly prepared food. Innovative offerings also contribute to the success of fast-casual restaurants. For example, leading chains like Panera Bread provide diverse menus with low-fat and gluten-free options. They also offer customization choices, such as half portions or thinner bread, catering to weight-conscious individuals. This flexibility and customization provided by fast-casual restaurants have been key drivers of market growth. In addition, the shift towards healthier eating habits is another significant factor influencing consumer preferences. People are becoming more conscientious of their meals' nutritional worth and quality. Fast-casual restaurants address this demand by sourcing local produce and providing customizable menu options, allowing customers to align their meals with their specific dietary needs and preferences.

Early Adoption of Advanced Technologies Creates Tremendous Opportunities

The food service industry is undergoing rapid transformation, with a strong focus on adopting advanced technologies for improved operations. Integrating scheduling software, digital inventory tracking, automated purchasing tools, and digital reservation table management has revolutionized revenue generation, inventory management, customer satisfaction, and overall operational efficiency. Implementing such software presents a promising opportunity for fast-casual restaurant owners to effectively manage queues, inventory, purchases, and other crucial operations. In addition, fast-casual restaurants are embracing online ordering systems, mobile apps, and self-service kiosks to enhance the convenience and efficiency of ordering. These technologies enable customers to place orders in advance, customize their meals, and track them in real-time. This streamlined approach enhances customer satisfaction and improves operational efficiency for restaurant owners.

Regional Analysis

North America is the most significant global fast-casual restaurant market shareholder and is estimated to rise at a CAGR of 8.9% over the anticipated period. Mexico, Canada, and the United States all study North America's quick casual restaurant sector. The U.S. economy, which has more flexibility than Western European companies regarding macroeconomic considerations, is the largest in the world in terms of GDP. On the other hand, Canada's industrial economy is based on high technology. The nation's economy grew less slowly in 2008, although it recovered more quickly. North American consumers' taste for healthy foods has changed quickly in recent years. Natural, clean-label, and organically cultivated foods are becoming more popular among customers in the area. Additionally, problems like obesity and diabetes are becoming increasingly common. As a result, customers choose their meals carefully, which leads to a preference for fast-casual eateries.

Europe is anticipated to grow at a CAGR of 10.5% over the forecast period. In 2016, the European Union's exports and imports ranked second worldwide. Following the 2008 recession, the general growth rate of Europe's economy has decreased. Despite Brexit, the European market offers enticing food and beverage industry potential. The popularity of fast-casual restaurants with healthy menu options has grown due to Europe's important level of life. Fast casual restaurants make it more convenient for working professionals, giving them more time for other pursuits. In addition, the rise of food establishments further encourages the expansion of fast-casual restaurants in this area. Consumers in Europe have a strong preference for products and ingredients that are made locally. Three out of five Europeans prefer to purchase things made locally. Quick casual restaurants have begun to provide freshly produced, natural, and locally sourced goods to satisfy this desire. A further factor driving demand for quick casual eateries in the area is the desperate way of life there.

Key Highlights

• The global fast casual restaurant market was valued at USD 169.92 billion in 2022. It is estimated to reach USD 407.26 billion by 2031, rising at a CAGR of 10.2% during the forecast period (2023–2031).
• Based on food type, the global fast-casual restaurant market is bifurcated into pizza/pasta, burgers/sandwiches, Asian/Latin American food, chicken, and others. The pizza/pasta segment dominates the global market and is projected to reveal a CAGR of 13.1% over the forecast period.
• Based on the mode of operation, the global fast-casual restaurant market is bifurcated into takeaway and dine In. The takeaway segment owns the global market and is predicted to exhibit a CAGR of 11.2% over the forecast period.
• Based on its nature, the global fast-casual restaurant market is bifurcated into standalone and franchised. The standalone segment owns the highest market share and is predicted to exhibit a CAGR of 12.2% over the forecast period.
• North America is the most significant global fast-casual restaurant market shareholder and is estimated to rise at a CAGR of 8.9% over the forecast period.

Competitive Players

1. Chipotle Mexican Grill
2. Panera Bread
3. Shake Shack
4. Five Guys
5. Noodles & Company
6. Panda Express
7. Wingstop
8. Zaxby's
9. Qdoba Mexican Eats
10. Blaze Pizza
11. Jersey Mike's Subs
12. MOD Pizza
13. Sweetgreen
14. CAVA
15. Pret A Manger

Recent Developments

Recent Developments

• January 2022- Chipotle Mexican Grill (CMG) announced that it would be opening a new restaurant in New York City. The restaurant, which is in Times Square, is the company's first location in the city.
• May 2023- Stratford announced a new destination for fast-casual Middle Eastern fare with the launch of Tahini’s first location in the Festival City, which celebrated its grand opening on Mother's Day.

Segmentation

1. By Food Type
   1. Burger/Sandwich
   2. Pizza/Pasta
   3. Asian/Latin American Food
   4. Chicken
   5. Others
2. By Mode of Operation
   1. Dine In
   2. Takeaway
3. By Nature
   1. Franchised
   2. Standalone