Article

Building, branding and loyalty in fast casual

Fast casual operations in non-commercial establishments are building brands and creating loyal consumers.

July 8, 2014

By Daniel Ernce,

Food IQ culinary team

Think of the last time you ate at a fast casual restaurant. Better yet, think of your favorite fast casual restaurant. Is it a chain, independent, or maybe contract managed? There’s a good chance the brand you have in mind isn’t something new; it’s something that’s been established for years, both in your life and in the U.S. as a whole. Chances are, that restaurant or something very much like it has a noncommercial presence in establishments whose primary function is not in foodservice, but everywhere from hospitals, to airports, to college campuses, to business and industry segments.

Over the past year, the fast casual segment has grown more than any other in the industry. It’s clear that fast casual is not only here to stay, but to grow. For the noncommercial industry, this means a symbiotic growth between restaurants and consumers, and a new generation of branded, loyal customers who will seek out a brand in every stage of life.

Fast casual: Built on relationships

Rob D’Orsi, associate director of culinary R&D at a food innovations firm in Springfield, MO, has spent a considerable amount of his culinary career in the noncommercial industry as the director of product development and as a corporate chef for Sodexo’s Retail Brand Group LLC. He states one of the reasons the fast casual segment is so important to the noncommercial industry is because of the relationship it builds with its consumers.

When I was developing brands, they were concepts that went into every segment and aimed at every age group. People could have been first exposed in places like hospitals or airports at a young age. Then, those same people would grow up and see that same brand in college, and, again, after they graduated and went into the work force. We wanted them to recognize us and have access no matter what they were doing.

But the fast casual segment is doing more than simply being present in every stage of a consumer’s life. Fast casual remains accessible to nearly every demographic, offering a comfortable experience, creative options and great value. “The segment is perfectly situated. If the economy dives, those who were eating at full service restaurants go to fast casual. If the economy bumps up, fast casual picks up consumers who had been eating at QSRs.” says D’Orsi.

Reaching Millennials

Some experts state that by 2017, college enrollment of people under the age of 25 will rise 10%. This means more brand-loyal millennials on more campuses across the country, and more millennial graduates to feed into the business and industry segment. Millennials in these categories are seeking a bargain, a range of choices and fast service — the exact niche fast casual fills.

Fast casual provides value in more ways than one which, to students and professionals, is important. Value means more than simply a low cost meal; it’s providing both a high quality and high quantity product that doesn’t break the bank. Furthermore, millennials want a break from the daily routine and can find that in their menu orders. Allowing for greater customization can cause the consumer to feel as if they can visit the same restaurant, again and again, while still being able to try something new.

For consumers with a finite amount of time for lunch, the speed of fast casual is vital, a concept with which many foodservice operators are familiar. According to Foodservice Director, many colleges and universities have been taking cues from the fast casual industry, structuring their operations after fast casual chains, such as Five Guys, in order to be faster and more efficient. However, though an operation may be structured like Five Guys, the fact remains, it’s simply not the original.

How loyal are your customers?

Within noncommercial, there is a delicate balance which exists between contracting nationally recognized brands, such as Panda Express, Chipotle and Subway, and creating signature brands or concept platforms such as Mein Bowl, Salsa Rico, and Sub Connection. On one hand, consumers may be more prone to get in line for a restaurant they can recognize and have seen advertised on a national scale. Arguably, though, consumers may be just as prone to stand in line for a signature brand whose concept and menu is familiar to something they have experienced at a national chain. Loyalty is not dependent on something as familiar or iconic as golden arches. Loyalty is built through quality food, friendly service and memorable experiences. The question is not, necessarily, how iconic is your brand, but rather, how loyal are your customers?

There is more than enough room in the noncommercial industry for both national brands, as well as signature brands. “I don’t think the noncommercial landscape is being changed to lean one way or another,” says D’Orsi. “As the fast casual segment grows as a whole, units of both national and signature brands will trickle down into the rest of the noncommercial industry. Each brand will create its own set of followers and that’s exactly what loyalty is about.”

As the fast casual segment continues to expand, so too will its consumers. Owners must be strategic about how they are attracting consumers, from simple advertising to concentrating units both in and around college campuses and work places, to expanding one’s presence into other high volume areas such as airports and medical centers. Possibilities for growth may be countless, but the consumers are finite. Therefore, it is critical that operators cater to their consumer with value, variety and speed.

So, the next time you’re seated at your favorite fast casual joint, take a moment to ponder if you’ve been branded, if you’re loyal, because fast casual is here to stay, and they want you in their corner. 

Daniel Ernce is part of the Food IQ culinary team, an insights and culinary innovation firm in Springfield, Mo.

photo credit: wikipedia