Fast casual restaurant market grows by US$302.5b in 2024 to 2028
It is estimated to increase at a CAGR of 15.2%.
The global fast casual restaurant market size is estimated to grow by US$302.5b from 2024 to 2028, due to demand for innovation and customisation in food menus and trend towards the rise of chef-driven fast casual franchises, according to Technavio.
The market is estimated to grow at a CAGR of 15.2% during the forecast period.
However, intense competition from quick-service restaurants poses a challenge. Key market players include Chipotle Mexican Grill Inc., DICKEYS BARBECUE RESTAURANTS Inc., Erbert and Gerberts Sandwich Shop, EXKi SA, and Famous Brands Ltd.
Aside from these, it also includes Five Guys Enterprises LLC, Godfathers Pizza Inc., LYKE Kitchen, McAlisters Franchisor SPV LLC, MOD Super Fast Pizza LLC, Noodles and Co., Panda Restaurant Group Inc., PORTILLOS Inc., Potbelly Corp., Restaurant Brands International Inc., Shake Shack Inc., Smashburger Servicing LLC, The Wendys Co., Wingstop Inc., and YUM Brands Inc.
Market driver
Technavio noted that the dine-in segment is estimated to witness significant growth during the forecast period, with it being the largest segment and was valued at US$148.80b in 2018.
Industry research also reveals that approximately one-third of children and teenagers in the United States, Canada, and various Asian and European nations consume sandwiches, burgers, or other fast-food options on a daily basis.
Moreover, around one-fifth of these individuals derive more than half of their daily dietary needs from such fast-food sources.
To address the daily nutritional needs of children and teenagers, fast-casual restaurants in the United States, the United Kingdom, and Australia have incorporated a variety of healthy meal options into their menus.
They are also offering 100% natural fruit-based smoothies, free from added sugars, artificial colors, and flavors, with a particular focus on catering to the preferences of children and millennials.
The United States sees a staggering consumption of over 290 million to 300 million sandwiches per day, with millennials being the primary consumers, drawn to the allure of quick, fresh, and convenient meal choices.
Approximately 65% of millennials opt for grab-and-go sandwiches.
Moreover, a significant portion of consumers prefer buying sandwiches from eateries rather than preparing them at home, with over 50% favoring this approach.
Key regions
North America is estimated to contribute 40% to the growth of the global market during the forecast period.
Technavio’s analysts have said that customisation is a pivotal feature sought after by many consumers in North America, particularly amongst millennials.
An example is Chipotle Mexican Grill, which offers a diverse selection of food options served in bowls, allowing customers to easily customise their orders by substituting ingredients.
Moreover, the report also noted that continuous innovation and menu revamping will be instrumental in driving the industry's growth in Canada throughout the forecast period.
Also, customers are increasingly avoiding food offerings perceived as less healthy in Canada.
With a growing emphasis on health and wellness, consumers are favouring the use of natural and fresh ingredients in food preparation.
In response, fast-casual restaurant providers are prioritising the inclusion of healthy, gluten-free options, as well as a variety of vegetarian and vegan dishes on their menus. These factors are expected to fuel market growth in the region during the forecast period.
