News

Europe's fast casual segment to hit $17B by 2024

May 23, 2019

The fast casual sector in Europe is on track to reach $17 billion by 2024, growing at a CAGR of about 6% during 2018-2024, according the "Fast-casual Dining Market in Europe — Industry Outlook and Forecast 2019-2024" by Research and Markets.

Change in dining patterns, the flexibility of fast casual, cultural influences  and evolution of digital technology are the top growth drivers, according to a press release about the findings. Also, small and regional chains were leading the growth and innovation, according to the report, which said that European consumers were seeking fast casual experiences because they were as short on time as people in the U.S.

And like U.S. customers, Europeans were seeking good value, ease of ordering, high-quality food and speedy customers service, which is where digital technology has started to change the way restaurants operated there. Brands, for example, were already using technology to customize orders, gather customer data and create lucrative rewards and discounts. Prominent vendors have integrated applications allowing customers to make the payment via debit and credit cards, Apple Pay or PayPal, according to the report.

England's Firejacks, for example, offers Pay My Bill, which allows diners to pay their bills electronically via a compatible mobile device at the restaurant. Similarly, Chipotle has created a tech-enabled second make line —  a second burrito assembly line where all online orders are assembled. It has fitted stores with visual screens that show which ingredients are added into each burrito, thereby improving accuracy. 

It's time for lunch
Europe's fast casual lunch segment grew gradually and was valued at around $5 billion in 2018. Increased lunch outings by office goers have significantly contributed to the segment growth, according to the report. Most restaurants were trying to leverage healthy food, combo options and competitive pricing. Vendors were slowly including beverages as part of the portfolios from signature hot beverages to alcohol.

On-premises vs off-premises
Analysts expected the on-premise dining segment to grow at a CAGR of around 5% during the forecast period. Increased outings and the rise in disposable income have given momentum to the on-premise casual dining segment. Further, to make fast casual restaurants more millennial-friendly and increase dwell time, vendors were adding elements "to fuel conversation, spread fun and frolic and increase community interactions."

Independents vs chains
The report also found that independent fast casuals dominated the market and were expected to 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. The independent segment has further been fast-tracked as a lot of internationally recognized professional chefs have been attracted to the market. 

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

Germany rules
Out of the areas studied in the report — Germany, UK, France, Spain, Italy, and rest of Europe — Germany has dominated the market and should grow at CAGR of around 6% during the forecast period.