Operations

Fast casual industry nearing $150B by 2028

Photo: Technavio

November 26, 2024

The U.S. fast casual industry will grow $65.2 billion to hit $149.96 billion by 2028, according to Technavio, a research firm that predicted that it will grow at a CAGR of 12.09% during the forecast period.

Trends driving growth include high-quality ingredients, locally sourced produce, fresh food and millennials' demand for organic food, ethnic-inspired dishes and customization.

Technology adoption

Technology adoption from online food delivery and door-to-door services to inventory tracking and scheduling software is also a factor, according to the research, which revealed that operational efficiency and customer satisfaction were also top priorities. The market is seeing a significant shift towards e-commerce, driven by the expanding tech-savvy population and increased internet access. Consumers, for example, prefer the convenience of online ordering and payment systems, such as credit and debit cards, internet banking, electronic wallets and cash-on-delivery. E-commerce platforms offer numerous benefits, including ease of use and access to customer reviews, helping consumers make informed decisions. This trend is transforming how Americans purchase food, making e-commerce a crucial aspect of the fast casual restaurant industry.

Pizza preparation and frying processes are also becoming automated with digital menu boards and payment windows offering convenience.

Entrepreneurs and investors see growth opportunities in franchising and standalone locations, but a focus on sustainability practices, such as local sourcing and eco-friendly packaging, are also essential.

Read the report here.