Fast Casual Restaurants Market to Grow by USD 302.5 Billion from 2024-2028, Driven by Demand for Food Menu Innovation & Customization, Report on How AI is Driving Market Transformation - Technavio
PR Newswire
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NEW YORK, Feb. 14, 2025 /PRNewswire/ -- Report with the AI impact on market trends - The global fast casual restaurants market size is estimated to grow by USD 302.5 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of15.2%during the forecast period. demand for innovation and customization in food menus is driving market growth, with a trend towards rise in popularity of chef-driven fast casual restaurant franchisesHowever, intense competition from quick-service restaurantsposes a challenge.Key market players include EXKI SA, ERBERT & GERBERT'S SANDWICH SHOP, Wingstop Restaurants, Inc., Tortilla Mexican Grill PLC., Zaxby's Franchising LLC, Panda Restaurant Group, Inc., Chipotle Mexican Grill, Restaurant Brands International Inc., FIVE GUYS ENTERPRISES, LLC., Famous Brands Limited, DICKEYS BARBECUE RESTAURANTS Inc., Godfathers Pizza Inc., LYKE Kitchen, McAlisters Franchisor SPV LLC, MOD Super Fast Pizza LLC, Noodles and Co., PORTILLOS Inc., Potbelly Corp., Shake Shack Inc., Smashburger Servicing LLC.
Technavio has announced its latest market research report titled Global fast casual restaurants market 2024-2028
Key insights into market evolution with AI-powered analysis. Explore trends, segmentation, and growth drivers- View Free Sample PDF
Fast Casual Restaurants Market Scope
Report Coverage
Details
Base year
2023
Historic period
2018 - 2022
Forecast period
2024-2028
Growth momentum & CAGR
Accelerate at a CAGR of 15.2%
Market growth 2024-2028
USD 302.5 billion
Market structure
Fragmented
YoY growth 2022-2023 (%)
12.85
Regional analysis
North America, APAC, Europe, South America, and Middle East and Africa
Performing market contribution
APAC at 40%
Key countries
UK, Canada, US, and China
Key companies profiled
EXKI SA, ERBERT & GERBERT'S SANDWICH SHOP, Wingstop Restaurants, Inc., Tortilla Mexican Grill PLC., Zaxby's Franchising LLC, Panda Restaurant Group, Inc., Chipotle Mexican Grill, Restaurant Brands International Inc., FIVE GUYS ENTERPRISES, LLC., Famous Brands Limited, DICKEYS BARBECUE RESTAURANTS Inc., Godfathers Pizza Inc., LYKE Kitchen, McAlisters Franchisor SPV LLC, MOD Super Fast Pizza LLC, Noodles and Co., PORTILLOS Inc., Potbelly Corp., Shake Shack Inc., Smashburger Servicing LLC
Market Driver
The Fast Casual Restaurants market is thriving, with trends like menu items such as salads, sandwiches, wraps, and bowls leading the charge. Alcoholic beverages are also becoming more common. Fast food outlets are enhancing customer experience by offering seating areas, Wi-Fi, and door-to-door delivery services. Cloud kitchens and online ordering systems are on the rise, along with franchise opportunities in the quick service restaurant sector. Economic recessions have led to a focus on inventory management through scheduling software, digital inventory tracking, and automated purchasing tools. Health consciousness, millennials, and Generation Z favor plant-based offerings, sustainable food alternatives, and international flavors. Fast-food locations are embracing self-service, premium products, and culinary traditions. The chicken segment, dine-in segment, takeaway segment, franchised segment, and standalone segment all benefit from digital platforms. Burger or sandwich, pizza or pasta, dine-in, takeaway, standalone, franchised, or culinary independence - fast-casual restaurants cater to all preferences with high-quality ingredients, locally sourced produce, and fresh food. Organic, natural, clean-labeled foods are in demand, as are fine dining experiences and ethnic-inspired dishes from brands like Panera Bread. Deliver-to-door companies have become essential during the coronavirus outbreak, with online ordering systems and mobile apps making ordering a breeze. Self-service kiosks and third-party aggregated apps further streamline the ordering process.
The fast-casual restaurant market is experiencing significant growth, with chef-driven concepts leading the charge. Chipotle Mexican Grill, founded by Steve Ells, is often cited as a key player in this development. Millennials, with their foodie culture and tech-savvy, social media habits, have also contributed to the trend. Professionally trained chefs, including celebrity chefs, are increasingly turning to fast-casual formats and franchising for business opportunities. These chefs provide innovative menus and proprietary recipes to cater to millennials' growing demand for quality, taste, and health-conscious options. Chef-driven fast-casual restaurants prioritize efficiency and kitchen training to offer high-quality, chef-crafted food at fast-casual prices.
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Market Challenges
Fast Casual Restaurants face several challenges in today's Food Service Industry. Menu diversity, including Salads, Sandwiches, Wraps, Bowls, and Alcoholic Beverages, must cater to various customer preferences. Fast food outlets require Seating Areas, Wi-Fi, and Door-to-Door Delivery Services to attract Millennials and Generation Z. Cloud Kitchens and Online Ordering systems, including Delivery Services, are essential for customer engagement. Automation, Scheduling Software, Digital Inventory Tracking, and Automated Purchasing Tools aid Inventory Management and Customer Satisfaction. Franchise Opportunities and Quick Service Restaurants are popular, but economic recessions impact the Food Service Industry. Chicken segment, Dine-in, Takeaway, Franchised, and Standalone segments require Digital Platforms, Plant-based offerings, and Sustainable Food Alternatives. Burger or Sandwich, Pizza or Pasta, Dine-in, Takeaway, or Standalone, Culinary Independence, and High-quality Ingredients are key. Ethnic-inspired Dishes, Premium Products, and International Flavors appeal to health-conscious consumers. Coronavirus outbreak increases reliance on Online Ordering Systems, Mobile Apps, Self-Service Kiosks, and Organic, Natural, Clean-Labeled Foods.
Fast-casual restaurants are targeting millennials by offering healthier food options prepared with fresh ingredients and fewer processed and artificial components. To attract this growing demographic, these restaurants are revamping their menus. For instance, quick-service giants like McDonald's have introduced nutritious offerings, such as Fruit n Yogurt Parfait and Garden Salad, to challenge the stereotype of fast food being unhealthy. This strategy aims to retain existing customers and attract new segments.
This fast casual restaurants market report extensively covers market segmentation by
Channel
Product
Geography
Food Type
Nature
1.1 Dine-in-The global fast casual restaurants market is experiencing growth due to the increasing population of adults aged 25-49 years. This demographic prefers dining out for convenience and work-life balance. Consumers seek menu flexibility and variety. Quick-service restaurants respond by offering multi-cuisine dishes to attract new customers. Promotional offers and discounts are utilized to enhance customer experience and identify areas for improvement. These strategies boost sales and provide valuable customer feedback for future product offerings. Overall, these factors positively impact the eat-in service segment, driving growth in the global fast casual restaurants market.
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Research Analysis
Fast casual restaurants offer a unique dining experience, blending the convenience of fast food with the quality and variety of a traditional restaurant. Menus feature a range of options including salads, sandwiches, wraps, and bowls, catering to health-conscious consumers. Alcoholic beverages are sometimes available, adding to the dining experience. Seating areas, often with Wi-Fi, provide a comfortable place to enjoy your meal. Self-service and fast-food locations ensure quick service, while premium products, international flavors, and culinary traditions keep menus exciting. Millennials and Generation Z are key demographics, with food delivery services also playing a significant role. High-quality ingredients, locally sourced produce, fresh food, and organic options are becoming increasingly important. Fine dining elements, such as ethnic-inspired dishes and Panera Bread's artisan breads, add to the overall dining experience. Burgers are a popular choice, but fast-casual restaurants also offer a wide variety of options, from high-quality sandwiches to bowls filled with fresh ingredients.
Market Research Overview
Fast Casual Restaurants: A Thriving Market of Salads, Sandwiches, Wraps, Bowls, and More The Fast Casual Restaurants market is a vibrant and dynamic segment of the Food Service Industry, offering an appealing alternative to both Quick Service Restaurants and Fine Dining establishments. This market is characterized by its focus on menu items such as salads, sandwiches, wraps, and bowls, often featuring premium ingredients, international flavors, and sustainable food alternatives. Seating areas, Wi-Fi, and self-service kiosks are common features in Fast Casual Restaurants, providing a comfortable and convenient dining experience for customers. Cloud kitchens, online ordering, and delivery services have also become essential components of this market, allowing for door-to-door convenience and increased customer engagement. Automation, scheduling software, digital inventory tracking, and automated purchasing tools are key tools used by Fast Casual Restaurants to optimize inventory management and ensure high-quality ingredients and customer satisfaction. The Chicken segment, Dine-in segment, Takeaway segment, Franchised segment, and Standalone segment all contribute to the market's growth. Plant-based offerings, organic and natural foods, and clean-labeled products are increasingly popular choices among health-conscious consumers, particularly Millennials and Generation Z. The market also includes a wide range of culinary traditions and international flavors, from burgers and sandwiches to ethnic-inspired dishes. The economic recession and Coronavirus outbreak have presented challenges to the Fast Casual Restaurants market, with online ordering systems, mobile apps, and third-party aggregated apps becoming essential for survival. The market continues to evolve, with a focus on culinary independence, fresh food, and locally sourced produce.
7 Customer Landscape 8 Geographic Landscape 9 Drivers, Challenges, and Trends 10 Company Landscape 11 Company Analysis 12 Appendix
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