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Industry leaders define fast casual

You would think that one of the last people to question the fast casual segment would be Ron Shaich, chairman of the arguably most well-known fast casual concept in the industry.

But during the October Multi-Unit Foodservice Operators conference, Panrea Bread’s chairman and former CEO did exactly just that.

Shaich told a roomful of conference attendees that “there was no such thing” as fast casual because consumers don’t call out the segment by that particular designation.

We definitely believe that fast casual does exist. The segment is home to an estimated 13,500 units and, according to Technomic, grew sales at a rate of 4.4 percent in 2009, compared to a 0.4 percent sales decline seen by the quick-service category in the industry’s overall Top 500 brands.

The segment also represents an estimated $23 billion of the overall $580 billion the industry pulls in a year, and is showing no signs of stagnation.

Fast casual executives and industry consultants weigh in below on whether the segment exists and what it means to them. Read on and then post your own opinion below.

 


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Jeff CarlAs operators, we strive to distinguish our concepts from each other based on price points, ordering systems and levels of service. Meanwhile, the consumer simply applies their personal value equation – what they receive for the price paid, for example: quality of food, level of service, total time required for a visit, overall ease of use. One guest might perceive Red Lobster as a “fine dining” experience while another might say it is “casual dining.” Delineations are convenient for the restaurant industry but are arguably irrelevant to our guests. From a guest’s perspective, Ron Shaich was on the mark. – Jeff Carl, CMO, Tavistock Restaurants

Andrew HunterMy opinion is certain consumers became less interested in traditional fast food choices, but still needed something to eat that was fast and affordable. This gave foodservice operators permission with price, quality and menu innovation ... and the industry named the growing segment "fast casual." As a professional in the industry, the distinction between QSR and fast casual is too fine for me to explain with confidence. If it's confusing for fellow professionals, then it's certainly confusing for the public. It might be that fast casual does exist, but it just needs an industry branding campaign so consumers understand what it means. - Andrew Hunter, president, Culinary Craft

Dan HoughtonI'd define it as a restaurant that serves food over the counter (no table service) but at a higher quality and price point to fast food. The cut off in the UK is about £5 per head is fast food. However, this is a bit arbitrary, and I can see why people would argue it doesn't really exist. But then, we make a distinction between casual dining and fine dining, which is equally arbitrary. It's only relevant if the distinction serves a purpose, for example educating customers or investors. – Dan Houghton - Co-founder & director, Chilango – Gourmet Mexican Cuisine (U.K.)

Alan HixonI definitely believe that it does exist. Although I think that it is true that most people do not say: “I think that I will go to a fast casual restaurant today.” There are obviously many that do find themselves wanting to go somewhere that is a step up from QSR in terms of food quality, service and ambiance while not having to make the time commitment and deal with the service model of a casual dining restaurant. In most cases, the price point falls between the two as well. – Alan Hixon, president, MOOYAH Burgers, Shakes & Fries

Linda Duke

Fast Casual does exist. In fact, the National Restaurant Association recently endorsed a group of 15 fast casual restaurant brand executives to its newly formed Fast Casual Industry Council and recognizes it as one of the fastest-growing segments of the restaurant industry today. – Linda Duke, Fast Casual Industry Council board member.  

Charlie Cocotas

There is definitely a fine line between fast casual and fast food connotations. In both cases, the food is usually delivered quickly (3 to 5 minutes). However one wants to categorize their concept, in today’s economy we all have to be competitive in our pricing. I think Ron may have a point since in the final analysis we are all competing for share of stomach. All said and done, as the old saying goes, “beauty is in the eye of the beholder”- Charles A. Cocotas, president & COO, UFood Restaurant Group

Tom DenticeWhat’s in a name? The term fast casual is important only to the industry so that we insiders can categorize the different segments and keep track of each other. The customer doesn’t care what we are called, they just want good food, great service and comfortable surroundings to enjoy their meal. Our customers want pleasant dining experience that fits their current circumstances. It could be fast food for lunch, fine dining for special occasions---or sometimes---something a little in between. It just so happens that there are a group of restaurants out there now that fit very well into the lifestyle of many people that have time compressed schedules due to work, family and social obligations. They are looking for an eating out experience that will provide all of above underlined items with reasonable (not low) prices and in total, are a value with a big V. To paraphrase a rather famous person---it’s much to do about nothing. Let’s not debate it---the important thing is our customers don’t care---to them we are restaurants that fit into their lifestyle no matter what we decide to call ourselves. Fast casual works for me. – Tom Dentice, chief fry guy, Tom & Eddie’s

George GreenWith the exceptions of QSR for speed and fine dining for celebrations, consumers choose restaurants not segments when they dine out. While it may be true that consumers don’t say “let’s go to a fast casual restaurant,” the same can be said for casual or family dining. Segment breakdowns mean a lot to those of us in the industry and analysts, but are irrelevant for the general public. However, Americans are relating to the fast casual value proposition (service model, food quality, atmosphere, price) and choosing our restaurants more and more each day. As a businessman, I would be foolish to ignore what those of us in the industry call fast casual, and I am perfectly happy making money from something others say “doesn’t exist.” – George Green, vice president, Bread & Company

Kathleen Wood

Absolutely, fast casual exists - that is the equivalent of asking does quick service or fine dining exist. Fast Casual represents the best practices of quick service and casual while simultaneously adding new levels of innovation, creativity and ambiance to truly meet customer expectations. – Kathleen Wood, founder and chief catalyst, Kathleen Wood Partners

Dave WolfgramFrom a public perception there is very little awareness of "fast casual," but there has been a rapid acceptance of the term and segment over the last two years from the investment and real estate communities, restaurant industry and local governments. With a tidal wave of anti-QSR sentiment, we need to make sure our style of service does not get lumped into QSR – there are several California communities that have banned fast food restaurants (they will not issue building permits!). Other communities are attempting to ban fast food from being located near schools, malls, parks, etc. If none of these communities clearly define fast food, we run the risk of being included if we do not differentiate ourselves from QSR. – Dave Wolfgram, president, Forklift Brands

 

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  • stuart davis
    about 18 months ago
    It's no revelation that customers do not use the "Fast Casual" designation. This is a term derived from industry people to separate us from fast food. Now known as "quick service". Do you ever hear customers refer to McDonald's as "quick service". No, you don't. Nor do you hear them refer to Cheesecake and Appleby's as "Casual theme restaurants". People are not hung up about the names we apply to our segments in our branding efforts. They know what they like and they want a fresh, high quality product at an afforable price. In fact, there are so many hybrids out there today that we better start creating a few more segment titles.
  • Christopher Tayah
    about 18 months ago
    Fast Casual is an industry term. It describes a certain type of restaurant. Just like there are certain terms to describe different facets in the oil industry, hotel industry, medical industry, etc., the restaurant industry has a term for a restaurant concept where customers order their food at a counter and pick it up at a counter in a nice setting with higher quality ingredients and preperation methods than that of fast food. This is where the term "fast casual" fits in. I really like what all the professionals had to say. Great article Valerie.
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