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Fast Casual State of the Industry available for download

The report reveals operators' biggest concerns and provides insight on trends they're embracing and how they are spending their money.

February 17, 2016

Technology, menu trends, minimum-wage, supply-chain and health care issues are just a few topics operators weighed in on in this year's Fast Casual State of the Industry report. The report, which surveyed more than 450 fast casual operators, is available for purchase and download, said Cherryh Cansler, managing editor of FastCasual.com and one of the report's editors.

"The fast casual industry is again leading the restaurant segment when it comes to growth, but that doesn’t mean fast casual operators are home free," she said. "According to the executives we polled, many are concerned about rising minimum wage and labor costs, and 27 percent said they would consider cutting staff to help with those costs. Almost 30 percent said they’d have to cut hours, and 58 percent said they’d raise menu prices, while 24 percent said they’d have to cut items from the menu. The report not only reveals operators' biggest concerns, it also delves into what trends they're embracing and how they are spending their money."

Cansler said the State of the Industry also includes six commentaries from industry experts on a variety of issues, including:

• Supply chain lessons learned at Jersey Mike’s, by Michael Manzo, COO, Jersey Mike’s Franchise Systems
  Sixty years ago, the supply chain system was pretty simple: You called your salesperson for product. It's not that simple anymore, and Manzo explains how the trend toward fresher meal options, powered by millennials, is affecting the supply chain.
• Understanding the Regulatory Front, by Don Fox, CEO, Firehouse of America LLC
  No matter where in the country you operate restaurants, 2016 likely will offer greater challenges when it comes to regulatory and legislative changes, Fox explains in his commentary. He discusses how wage, heath care and overtime issues  as well as the National Labor Relations Board rulings on joint employer will affect the fast casual industry.
• Restaurant Marketing in a Digital Age, by Nick Powills, chief brand strategist, No Limit Agency
  Powills discusses how despite having smarter technologies to help target exact audiences, there are more tools and platforms than ever for marketers to master. He gives an inside look at which are the most important to your business.
• Preparing for Minimum-Wage Increases, by Mark Kuperman, North American president, Revenue Management Solutions
  An increasing number of municipalities and states around the country have plans to raise the minimum wage over the next few years,which is forcing restaurant owners to figure out how to manage those rising costs without hurting their customer traffic. Kuperman's commentary will help operators plan ahead for the increases
• How Economic Issues Effect the Success of the Fast Casual Sector, by Dustin Minton, assurance partner for national restaurant practice, BDO USA LLP 
  Minton points out that while the fast casual segment has seen an uptick in sales, commodity price decreases and many options for financing growth, the year ahead will bring new challenges and opportunities for restaurants. It will be important for fast casual businesses to be nimble in responding to general economic conditions, leverage technology to maximize labor efficiencies and drive sales through new distribution channels, which can lead to greater profitability in this ever-changing industry.
• 3 Insights About Mobile Payment Adoption, by Tal Nathanel, CEO, MyCheck
  Mobile payment adoption has been rising steadily for years, but some restaurant owners are finding there is a learning curve. With this growing adoption, restaurant owners are poised not only to better understand their customers' habits and preferences, but also to help educate their customers about the benefits of security and convenience of mobile payments. Nathanel predicts that as more major players entering the market, restaurant owners will continue to see increased demand for mobile payments.

Click here to download the report.