The global fast casual restaurant market was valued at $124.5 billion in 2022, and is projected to reach $337.8 billion by 2032, registering a CAGR of 10.4% from 2023 to 2032.
The concept of fast casual restaurants came into existence in the late 90’s, however it gained much traction in 2009. Fast casual restaurants deal with the preparation of fresh food rather than assembling them as in the case of fast-food restaurant. High quality ingredients, locally sourced, fresh, and organic nature of food prepared are some of the many characteristics of the fast casual restaurants. Furthermore, fast casual restaurant prices are higher in comparison to those of fast-food establishments but considerably lower than those of fine dining restaurants.
The growth of the fast casual restaurant industry is propelled by the significant increase in demand for food delivery services and the expanding user base, stemming from the widespread development of internet infrastructure worldwide. Asia-Pacific is considered as one of the regions which has experienced significant growth in terms of economic development at a faster rate and all the industry in the region are booming. About one-third consumers in the Asia-Pacific use delivery to door services for getting their food delivered at doorsteps. As a result, rapid expansion of online delivery services that includes Uber Eats, DoorDash, Grubhub, Deliveroo, Zomato, and Swiggy has been witnessed in the past few years, which has tremendously helped in the growth of fast casual restaurant market. The convenience of food delivery has been increasingly enhanced by technological advancements, which has extended to a global scale. Online aggregators provide convenience to customers with various options such as pre-ordering, order customization, and rapid delivery, all of which have played a pivotal role to boost the expansion of fast casual restaurants. This trend of convenient door-to-door delivery services is expected to propel the growth of fast casual restaurants during the forecasted period.
However, economic uncertainties and the prospect of rising unemployment and inflationary pressures present challenges for the growth of fast casual restaurants. These restaurants provide a fresh and health-conscious menu in a carefully curated ambiance, but this premium pricing may deter cost-conscious consumers. In comparison to more budget-friendly quick-service choices like Subway or McDonald's, this pricing discrepancy could narrow the customer base for fast casual restaurants and hinder their ability to reach a wider audience. Moreover, labor costs and availability of skilled staff are critical factors, which is affected due to rising labor costs. It has a direct impact on the profitability of the fast casual restaurant businesses, and prompt automation and operational efficiency improvements.
The dynamic changes occurring in the food service industry highlights the importance of technological advancements for enhanced and efficient operations in fast casual restaurants. The integration of scheduling software, digital inventory tracking systems, automated procurement tools, and digital table reservation management solutions has high potential to bring significant improvements in revenue generation, inventory control, customer satisfaction, and overall operational efficiency within the food service sector. This trend has the ability to offer huge opportunities for stakeholders engaged in the fast casual restaurant segment, which thus facilitates streamlined queue management, procurement processes, and other critical operational aspects. Thus, with incorporation of technological advancement, there are many opportunities for fast casual restaurants to widen their customer base and have a greater hold on the market with a scope of faster growth in the coming years. In addition, the adoption of robot-assisted cooking technology has found its way into the kitchens of fast casual restaurants. For instance, fast casual restaurants such as Chipotle, White Castle, and Wing Zone have made substantial investments in robotic equipment, automating various tasks which ranges from pizza preparation to fryer operations. As a result, advanced technology holds high potential for market growth by increased enhancement in terms of convenience, reduction in labor costs, and expediting food preparation, which ultimately lead to faster food delivery to customers.
Furthermore, sustainability initiatives, such as sourcing local and organic ingredients, reduction of food waste, and adoption of eco-friendly packaging, attract environmentally conscious customers and reduce operational costs of the restaurant over time. For instance, Sweetgreen prioritizes sustainability, as they divert 60% of waste from landfills with compost services. The company composts 75% of food scraps and certify all customer-facing items, such as forks, lids, bowls, bags, cups, and straws, as compostable. This holistic approach indicates their strong commitment to eco-friendly practices. This creates an opportunity for the sustainable growth of the market along with an increase in fast casual restaurant market share in the future.
The fast casual restaurant market is segmented into food type, mode of operation, nature, and region. By food type, the market is segregated into burger/sandwich, pizza/pasta, Asian/Latin American food, chicken, and others. As per mode of operation, it is divided into dine-in and takeaway. According to nature, the market is bifurcated into franchised and standalone. Region wise, it is analyzed across North America (U.S., Canada, and Mexico), Europe (UK, Germany, France, Italy, Spain, and rest of Europe), Asia-Pacific (China, India, Japan, Asean, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
The key players operating in the fast casual restaurant market include Chipotle Mexican Grill, Wingstop Restaurants, Inc., EXKI SA, Panda Restaurant group, Inc., Five Guys Enterprises, LLC., Famous Brands Limited, Restaurant Brands International Inc., Zaxby’s Franchising LLC., Erbert & Gerbert’s Sandwich Shop, and Tortilla Mexican Grill PLC. Key Benefits For Stakeholders This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the fast casual restaurant market analysis from 2022 to 2032 to identify the prevailing fast casual restaurant market opportunities. The market research is offered along with information related to key drivers, restraints, and opportunities. Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network. In-depth analysis of the fast casual restaurant market segmentation assists to determine the prevailing market opportunities. Major countries in each region are mapped according to their revenue contribution to the global market. Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players. The report includes the analysis of the regional as well as global fast casual restaurant market trends, key players, market segments, application areas, and market growth strategies.
The concept of fast casual restaurants came into existence in the late 90’s, however it gained much traction in 2009. Fast casual restaurants deal with the preparation of fresh food rather than assembling them as in the case of fast-food restaurant. High quality ingredients, locally sourced, fresh, and organic nature of food prepared are some of the many characteristics of the fast casual restaurants. Furthermore, fast casual restaurant prices are higher in comparison to those of fast-food establishments but considerably lower than those of fine dining restaurants.
The growth of the fast casual restaurant industry is propelled by the significant increase in demand for food delivery services and the expanding user base, stemming from the widespread development of internet infrastructure worldwide. Asia-Pacific is considered as one of the regions which has experienced significant growth in terms of economic development at a faster rate and all the industry in the region are booming. About one-third consumers in the Asia-Pacific use delivery to door services for getting their food delivered at doorsteps. As a result, rapid expansion of online delivery services that includes Uber Eats, DoorDash, Grubhub, Deliveroo, Zomato, and Swiggy has been witnessed in the past few years, which has tremendously helped in the growth of fast casual restaurant market. The convenience of food delivery has been increasingly enhanced by technological advancements, which has extended to a global scale. Online aggregators provide convenience to customers with various options such as pre-ordering, order customization, and rapid delivery, all of which have played a pivotal role to boost the expansion of fast casual restaurants. This trend of convenient door-to-door delivery services is expected to propel the growth of fast casual restaurants during the forecasted period.
However, economic uncertainties and the prospect of rising unemployment and inflationary pressures present challenges for the growth of fast casual restaurants. These restaurants provide a fresh and health-conscious menu in a carefully curated ambiance, but this premium pricing may deter cost-conscious consumers. In comparison to more budget-friendly quick-service choices like Subway or McDonald's, this pricing discrepancy could narrow the customer base for fast casual restaurants and hinder their ability to reach a wider audience. Moreover, labor costs and availability of skilled staff are critical factors, which is affected due to rising labor costs. It has a direct impact on the profitability of the fast casual restaurant businesses, and prompt automation and operational efficiency improvements.
The dynamic changes occurring in the food service industry highlights the importance of technological advancements for enhanced and efficient operations in fast casual restaurants. The integration of scheduling software, digital inventory tracking systems, automated procurement tools, and digital table reservation management solutions has high potential to bring significant improvements in revenue generation, inventory control, customer satisfaction, and overall operational efficiency within the food service sector. This trend has the ability to offer huge opportunities for stakeholders engaged in the fast casual restaurant segment, which thus facilitates streamlined queue management, procurement processes, and other critical operational aspects. Thus, with incorporation of technological advancement, there are many opportunities for fast casual restaurants to widen their customer base and have a greater hold on the market with a scope of faster growth in the coming years. In addition, the adoption of robot-assisted cooking technology has found its way into the kitchens of fast casual restaurants. For instance, fast casual restaurants such as Chipotle, White Castle, and Wing Zone have made substantial investments in robotic equipment, automating various tasks which ranges from pizza preparation to fryer operations. As a result, advanced technology holds high potential for market growth by increased enhancement in terms of convenience, reduction in labor costs, and expediting food preparation, which ultimately lead to faster food delivery to customers.
Furthermore, sustainability initiatives, such as sourcing local and organic ingredients, reduction of food waste, and adoption of eco-friendly packaging, attract environmentally conscious customers and reduce operational costs of the restaurant over time. For instance, Sweetgreen prioritizes sustainability, as they divert 60% of waste from landfills with compost services. The company composts 75% of food scraps and certify all customer-facing items, such as forks, lids, bowls, bags, cups, and straws, as compostable. This holistic approach indicates their strong commitment to eco-friendly practices. This creates an opportunity for the sustainable growth of the market along with an increase in fast casual restaurant market share in the future.
The fast casual restaurant market is segmented into food type, mode of operation, nature, and region. By food type, the market is segregated into burger/sandwich, pizza/pasta, Asian/Latin American food, chicken, and others. As per mode of operation, it is divided into dine-in and takeaway. According to nature, the market is bifurcated into franchised and standalone. Region wise, it is analyzed across North America (U.S., Canada, and Mexico), Europe (UK, Germany, France, Italy, Spain, and rest of Europe), Asia-Pacific (China, India, Japan, Asean, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
The key players operating in the fast casual restaurant market include Chipotle Mexican Grill, Wingstop Restaurants, Inc., EXKI SA, Panda Restaurant group, Inc., Five Guys Enterprises, LLC., Famous Brands Limited, Restaurant Brands International Inc., Zaxby’s Franchising LLC., Erbert & Gerbert’s Sandwich Shop, and Tortilla Mexican Grill PLC. Key Benefits For Stakeholders This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the fast casual restaurant market analysis from 2022 to 2032 to identify the prevailing fast casual restaurant market opportunities. The market research is offered along with information related to key drivers, restraints, and opportunities. Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network. In-depth analysis of the fast casual restaurant market segmentation assists to determine the prevailing market opportunities. Major countries in each region are mapped according to their revenue contribution to the global market. Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players. The report includes the analysis of the regional as well as global fast casual restaurant market trends, key players, market segments, application areas, and market growth strategies.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the fast casual restaurant market analysis from 2022 to 2032 to identify the prevailing fast casual restaurant market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the fast casual restaurant market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global fast casual restaurant market trends, key players, market segments, application areas, and market growth strategies.
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Key Market Segments
By Food Type
- Burger/Sandwich
- Pizza/Pasta
- Asian/Latin American Food
- Chicken
- Others
By Mode of Operation
- Dine-in
- Takeaway
By Nature
- Franchised
- Standalone
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- Asean
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
- Key Market Players
- Chipotle Mexican Grill
- Wingstop Restaurants, Inc.
- EXKI SA
- Panda Restaurant group, Inc.
- FIVE GUYS ENTERPRISES, LLC.
- Famous Brands Limited
- Restaurant Brands International Inc.
- ERBERT & GERBERT’S SANDWICH SHOP
- Tortilla Mexican Grill PLC.
- Zaxby’s Franchising LLC
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: FAST CASUAL RESTAURANT MARKET, BY FOOD TYPE
CHAPTER 5: FAST CASUAL RESTAURANT MARKET, BY MODE OF OPERATION
CHAPTER 6: FAST CASUAL RESTAURANT MARKET, BY NATURE
CHAPTER 7: FAST CASUAL RESTAURANT MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, the fast casual restaurant market was valued at $124.50 billion in 2022, and is estimated to reach $337.8 billion by 2032, growing at a CAGR of 10.4% from 2023 to 2032.A fast casual restaurant is a type of self-service restaurant that primarily offers freshly prepared quality meals. Customers have various options to choose from as these restaurants offers dine-in or take their food away, and online ordering for pickup or delivery. Fast casual restaurant presents a dining concept that bridges the gap between fast food and casual dining, which offers a balance of quality, customization, and convenience to discerning consumers. Many fast casual restaurants provide convenient online ordering capabilities for both pickup and delivery orders, catering to changing consumer preferences for digital convenience. Prices are higher in fast casual restaurants as compared to the food prices at fast-food outlets. This higher price of menu arises owing to the use of fresh ingredients and made-to-order meals.
The expansion of fast-casual restaurants is driven vastly from change in consumer preferences for healthier lifestyles across different parts of the world. This move toward health-conscious food habits serves as a driving factor for the growth of the fast-casual restaurant sector, as it focuses on the delivery of fresh, minimally processed food to cope up with range of customer with varying dietary preferences. These restaurants have gained popularity among consumers due to the addition and introduction of innovative menu selections. For instance, Panera Bread in the U.S., presents a wide array of bread options, including low-fat and gluten-free alternatives. In addition, customization options, such as half portions and thinner bread options help to attract weight-conscious consumers. Moreover, the addition of whole, protein-rich food, and vegetarian options caters to a broader customer base that further propels market growth.
The primary challenges faced by the fast casual restaurant market includes strong competition from the other types of segments in the restaurant industry. Various restaurant types exist within the restaurant industry, including fine dining establishments, casual dining venues, and quick-service restaurants. These segments of restaurants exhibit fierce competition, which could potentially impede the growth of the fast casual restaurant market during the forecasted period. Conventional fast-food chains have recognized the changing consumer preferences toward healthier dining options and have adapted their menus to include items that directly complete with those food items found in fast casual restaurants, such as salads, wraps, and bowls. Moreover, well-established casual dining restaurant brands, renowned for their dining experiences and food excellence, have ventured into the fast casual realm by introducing more streamlined and efficient restaurant formats. This strategic move aims to directly compete with fast-casual restaurants in terms of food offerings and faster delivery service. Furthermore, competition from these diverse segments within the restaurant industry potentially hinder the growth of the fast-casual restaurant market during the forecast period.
The food service industry has experienced a rapid transformation, owing to the increased focus on the adoption of technology to enhance operational efficiency. The integration of scheduling software, digital inventory tracking, automated purchasing tools, and digital reservation table management systems has led to substantial improvements in revenue generation, inventory control, customer satisfaction, and overall operational effectiveness within the industry. The continued incorporation of such software solutions is expected to offer lucrative prospects for stakeholders engaged in the fast casual restaurant sector, facilitating queue management, inventory optimization, procurement, and other critical functions. In addition, advanced technology, including robot cooking technology, has now made its way into the kitchens of fast casual restaurants. For instance, establishments like Chipotle, White Castle, and Wing Zone have invested in robotic equipment to automate various kitchen tasks, ranging from pizza preparation to frying. Consequently, advanced technology holds significant potential for market growth by enhancing convenience, reducing labor costs, and decreasing food preparation time, ultimately resulting in quicker food delivery to customers. This technological evolution presents new opportunities for the market and its stakeholders.
The fast casual restaurant market is segmented into food type, mode of operation, nature, and region. On the basis of food type, the market is segregated into burger/sandwich, pizza/pasta, Asian/Latin American food, chicken, and others. As per mode of operation, it is divided into dine-in and takeaway. By nature, the market is bifurcated into franchised and standalone. Region wise, it is analyzed across North America (U.S., Canada, and Mexico), Europe (UK, Germany, France, Italy, Spain, and rest of Europe), Asia-Pacific (China, India, Japan, Asean, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
Some of the key players operating in the fast casual restaurant market analysis include Chipotle Mexican Grill, Wingstop Restaurants, Inc., EXKI SA, Panda Restaurant group, Inc., Five Guys Enterprises, LLC., Famous Brands Limited, Restaurant Brands International Inc., Zaxby’s Franchising LLC., Erbert & Gerbert’s Sandwich Shop, and Tortilla Mexican Grill PLC.
According to the market players, the major obstacle surfaced during the pandemic was the temporary suspension of operations in hotels, restaurants, and cafes globally. Moreover, there were high restrictions such as social distancing that led to suspension of delivery operations. Furthermore, the implementation of vaccine and facemask regulations in specific regions had a significant effect on the footfall of customers at these properties. Forced closures and reduced revenue due to the absence of dine-in customers led to staff layoffs. These restaurants shifted focus to takeout and delivery, by the application of digital ordering systems. Many restaurants simplified menus to cut costs and managed supply chain disruptions. Moreover, changing customer preferences toward health-conscious options prompted menu adjustments in various fast casual restaurants across the world. The pandemic accelerated digital transformation, with QR codes for menus. Thus, it affected the function of fast casual restaurants and has completely changed the way of operation in the past few years.
KEY FINDINGS OF STUDY
By food type, the burger/sandwich segment was the highest revenue contributor to the market, with $36.2 million in 2022, and is estimated to reach $89.4 million by 2032, with a CAGR of 9.4%.As per mode of operation, the dine-in segment was the highest revenue contributor to the market, with $80.3 million in 2022, and is estimated to reach $209.0 million by 2032, with a CAGR of 9.9%.
Depending on the nature, the franchised segment was the highest revenue contributor to the market, with $103.9 million in 2022, and is estimated to reach $275.1 million by 2032, with a CAGR of 10.1%.
Region wise, North America was the highest revenue contributor, accounting for $56.1 million in 2022, and is estimated to reach $137.5 million by 2032, with a CAGR of 9.3%.
Companies Mentioned
- Chipotle Mexican Grill
- Wingstop Restaurants, Inc.
- EXKI SA
- Panda Restaurant group, Inc.
- FIVE GUYS ENTERPRISES, LLC.
- Famous Brands Limited
- Restaurant Brands International Inc.
- ERBERT & GERBERT’S SANDWICH SHOP
- Tortilla Mexican Grill PLC.
- Zaxby’s Franchising LLC
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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