CHICAGO — A recent Mintel report estimates that total sales at leading fast-casual chains in the United States doubled in the last five years.
"An increased interest in healthy eating, ethnic cuisine and premium ingredients largely explains the boom in market growth," said Bill Hulkower, an analyst for Mintel, in a news release. "And what we've seen so far is only the beginning. Relative to QSR (quick-serve restaurant) and full-service, there are still very few fast-casual restaurants. As long as they keep updating menus to fit current eating trends, there is substantial room for growth. This category is eating into lunch sales at full-service restaurants, and it's going to pull some sales from QSR. A lot of people just don't have enough lunch time for table service, but don't want to do the QSR drive-thru."
More than half of Mintel survey respondents stated they think fast-casual food is more healthful than fast-food offerings. Close to half also cited a willingness to spend more to eat more healthfully.
Panera substantially leads the fast-casual sector in sales, and rapidly growing chains in the category include Zaxby's, Wingstop, Qboda Mexican Grill and Pei Wei. Among categories, the ethnic fast-casual segment has experienced the fastest growth, relative to the bakery and home-meal replacement segments.
Fast casual's increased sales have not gone unnoticed by fast-food competition. In response to the category's growth, there is a marked increase in the amount of premium items appearing on QSR menus.
"QSRs are upgrading ingredients and stretching menus to provide ethnic offerings," Hulkower said. "McDonald's added an Asian salad recently that has fast casual written all over it. With fast casual poised for tremendous growth over the next five years, we potentially have a battle brewing between QSRs and fast casual."
