News

European fast casual dining market to hit $17B by 2024

July 30, 2019

The European fast casual dining market will reach $17 billion by 2024, growing at a compound annual growth rate of approximately 6% by 2024, according to a recent study from technology and data company Report Linker. The company found that changes in dining patterns, the flexibility of the fast casual service model, cultural influences and the evolution of digital technology were the driving growth factors.

"A lot of the growth and innovation is being fueled in the fast-casual dining market by small and regional chains similar to the relationship between Instagram generation and strong marketing of small brands," according to a press release about the report. "This has shifted expectations around restaurant designs, ingredient sourcing, services, and food."

Europe has demonstrated high potential for fast casual growth as consumers across the region have been short on time and seeking out new dining experiences. Cross-referencing has been gaining traction in fast casual kitchens so as to not stress workers in the quick service environment and the kitchen in general. Good value meals, ease of ordering, decent customer services and high-quality food and taste have provided momentum, according to the release.

The report — which included a detailed segmentation of the market by day part, channel, format and geography — found that the lunch segment grew gradually and was valued at around $5 billion in 2018. Increased lunch outings by office goers significantly contributed to the segment growth. Most casual restaurants were trying to leverage healthy food, combo options and competitive pricing, and vendors have been slowly including beverages, from signature hot drinks to alcohol, as part of the portfolios.

The diner segment was the second fastest growing sub-segment of Europe's fast casual dining market. It saw high popularity among customers, especially the family segment, and serves high-quality food under the quick service model.

When comparing the growth of independent brands and chains, independents dominated the market and should grow at a CAGR of around 6% during the forecast period. High responsiveness toward customer needs and the element of freshness and surprise were the key factors for market growth, according to the report.

The independent segment has been fast-tracked as a lot of internationally recognized professional chefs have entered the market.

"For instance, Paul Bocuse's Ouest Express, Ferran Adria's Fastfood, and Marcus Samuelsson's Street Food in Western Europe are offering high-quality food and quick service together," according to the report. "These chef-driven concepts have rendered a level of creativity to independent fast casuals, thereby propelling the Europe fast-casual dining market."