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Fast Casual Restaurants - US - February 2017

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
The issues
Consumers have defined associations with fast food and fast casual
Figure 1: Dish association between fast food and fast casuals, November 2016
iGens are low-frequency visitors
Figure 2: Low-frequency (one to three times a month or less than once a month) fast casual visitation, by cuisine type, by generation, November 2016
Millennials are not motivated by affordability
Figure 3: Importance of affordability, by generation, November 2016
The opportunities
Hispanic Millennials are a key target for fast casuals
Figure 4: High-frequency visitation (one to three times a week or more), by cuisine type, by Hispanic Millennials and non-Hispanic Millennials, November 2016
Women value the social experience
Figure 5: Fast casual statement agreement, any agreement, by gender, November 2016
Online ordering is the wave of the future
Figure 6: Important qualities of a fast casual, by generation, November 2016
What it means
THE MARKET – WHAT YOU NEED TO KNOW
QSRs seek to offer a more premium experience
Smartphone ownership redefines meals
The evolution of a foodie
MARKET PERSPECTIVE
Casual dining chains entering the fast casual scene
QSRs competing with premium fast casual factors
Figure 7: Number of menu items at QSRs with menu and ingredient claims, Q4 2015-16
MARKET FACTORS
A smartphone in every pocket
Figure 8: Smartphone owners, by age, November 2016
Food halls and breweries provide new expansion opportunities
Figure 9: Gourmet food hall visitation, by generation, September 2016
Figure 10: Local bar / brewery visitation, by generation, September 2016
Hispanics are an important segment to watch
Figure 11: Population by race and Hispanic origin, 2012-22
The foodie movement
Figure 12: Statement agreement, “I consider myself a foodie,” by Millennials and non-Millennial foodies, May 2016
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Expansion is not straightforward
Established chains continue to show growth
Emerging segments show a focus on beverages
THE FAST CASUAL IDENTITY
KEY FAST CASUAL PLAYERS – ESTABLISHED CHAINS
Chipotle
Panera Bread
Corner Bakery
Noodles & Company
Shake Shack
Blaze Pizza
SMALLER/INDEPENDENT FAST CASUALS 
Mendocino Farms
Holler & Dash
The Kebab Shop
Homegrown
honeygrow
Nachoria
Antique Taco
SEGMENTS TO WATCH
International
Indian cuisine introduces new flavor profiles in familiar settings
Seafood
Health
SOCIAL MEDIA FAST CASUAL ANALYSIS DATA
Methodology
Facebook remains the most dominant source of followers
Figure 13: Total Number of social media followers, Oct. 1, 2016-Dec. 31, 2016
Followers don’t equal engagement
Figure 14: Total Number of social media engagements, Oct. 1, 2016-Dec. 31, 2016
Shake Shack posts frequently, Chipotle emphasizes Twitter
Figure 15: Total number of social media posts, Oct. 1, 2016-Dec. 31, 2016
THE CONSUMER – WHAT YOU NEED TO KNOW 
A new take on combo deals
Affordable and fresh are the top associations
The importance of menu variety
FAST CASUAL VISITATION 
Consumers show cuisine diversity in fast casual visitation
Figure 16: Any fast casual visitation, by cuisine type, November 2016.
Indulgent options lead in high-frequency visitation
Figure 17: High-frequency fast casual visitation, by cuisine type, November 2016
Men and Millennials: A core fast casual demographic
Figure 18: Any fast casual visitation, by cuisine type, by gender, November 2016
Figure 19: High-frequency fast casual visitation, by cuisine type, by generation, November 2016
Figure 20: Low-frequency fast casual visitation, by cuisine type, by generation, November 2016
Hispanic Millennials are a demographic to watch
Figure 21: High-frequency visitation, by cuisine type, by Hispanic Millennials and non-Hispanic Millennials, November 2016
The urban and suburban difference
Figure 22: Any fast casual visitation, by cuisine type, by urban and suburban Millennials, November 2016
Don’t ignore dad in marketing campaigns
Figure 23: any fast casual visitation, by cuisine type, by mothers and fathers, November 2016
VISITATION MOTIVATORS
Consumers crave combo deals
Figure 24: Turf Analysis, increased visitation motivators, November 2016
More than half of World War II/Swing generation consumers are not motivated by any factors
Figure 25: Increased fast casual visitation motivators, by generation, November 2016
The drive-thru factor
Figure 26: Drive-Thru as a fast casual motivator, by mothers and fathers, November 2016
Hispanic Millennials care about breakfast and WiFi
Figure 27: Increased fast casual visitation motivators, by Hispanics, November 2016
Low-frequency visitors driven in by combo deals and new menu items
Figure 28: Increased fast casual visitation motivators, by visitation frequency, November 2016
FAST CASUAL ASSOCIATIONS
Affordable is a key fast casual association
Figure 29: Fast casual associations, any rank, November 2016
Figure 30: Fast casual associations, any rank, by gender, November 2016
Suburban Millennials show a stronger association with affordability
Figure 31: Fast casual associations, any rank, by urban and suburban millennials, November 2016
Figure 32: Fast casual associations, any rank, by age, November 2016
ATTITUDES TOWARD FAST CASUALS
Fast casuals remain a key hot spot for lunch
Figure 33: Fast casual statement agreement, any agreement, November 2016
Figure 34: Fast casual statement agreement, any agreement, by age, November 2016
Younger consumers pay more attention to transparency and innovation
Figure 35: Fast casual statement agreement, any agreement, by age, November 2016
Men focus on food, women focus on the experience
Figure 36: Fast casual statement agreement, any agreement, by gender, November 2016
A convenient dinner option for parents
Figure 37: Fast casual statement agreement, any agreement, by parents and nonparents, November 2016
IMPORTANT FAST CASUAL FACTORS
A focus on the basics
Figure 38: Important qualities of a fast casual, November 2016
Affordability is key for low-frequency visitors
Figure 39: Important qualities of a fast casual, by high-frequency visitors and low-frequency visitors, November 2016
Millennials display a different value perspective
Figure 40: Importance of affordability, by generation, November 2016
Figure 41: Important qualities of a fast casual, by generation, November 2016
Defining affordability through customization
Figure 42: Important qualities of a fast casual, by income, November 2016
FAST FOOD AND FAST CASUAL DISHES
Fast food and fast casual dishes maintain traditional associations
Figure 43: Dish association between fast food and fast casual, November 2016
Millennials show greater equality between segments
Figure 44: Breakfast sandwich association between fast food and fast casual, by generation, November 2016
Figure 45: Burger association between fast food and fast casual, by generation, November 2016
Figure 46: Side dish association between fast food and fast casual, by generation, November 2016
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Abbreviations and terms
Abbreviations
APPENDIX – TURF ANALYSIS
Methodology
Figure 47: Table – TURF analysis – Increased visitation motivators, November 2016

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