What you need to know
The fast casual restaurant segment continues to experience steady sales growth fueled by diners’ interest in high-quality ingredients and better-for-you menu options in an accessible format. However, as restaurant segments blur with full service restaurants offering more convenient ordering options and fast food restaurants offering more premium ingredients, fast casuals struggle to retain their distinctiveness. Looking to 2019 and beyond, fast casual operators should focus on expanding international flavors, plant-based options, and dayparts beyond lunch to sustain their popularity.
Definition
This Report will examine consumer attitudes toward the fast casual dining segment. It will investigate frequency of visitation to fast casual restaurants, consumer comparisons to other dining segments, and fast casual cuisine interest. This Report builds upon previous Reports with this title from 2018, 2017, 2016, 2013, 2012, 2011, and 2010.
For the purposes of this Report, Mintel has used the following restaurant definitions:
QSRs (quick service restaurants) – Used interchangeably with “fast food,” QSRs specialize in inexpensive, convenient meals. There is no waiter service, no alcoholic beverages, and a low price point. Examples include: McDonald’s, KFC, Taco Bell, Wendy’s, and Pizza Hut.
Fast casual restaurants – These establishments are characterized by a higher price point than QSRs though not as high as full-service restaurants. Fast casuals do not offer waiter service and may or may not serve alcohol. Examples include: Chipotle, Panera Bread, Shake Shack, and Blaze Pizza.
LSRs (limited service restaurants) – These establishments provide food services where customers usually select and order items and pay before dining. Food/drink may be consumed on the premises, offered as carryout, or delivered to the customer’s location. These may also sell alcoholic beverages. LSRs include both QSRs and fast casual restaurants. The “other” category within LSRs (as seen in the Market Size and Forecast) includes snacks and non-alcoholic beverage bars, cafeterias, grills, and grill buffets.
FSRs (full service restaurants) – These establishments have waiter/waitress service in which customers order and are served while seated. These may also sell alcoholic beverages and offer carryout services and include the following restaurant segments: casual dining, midscale, and fine dining, see definitions below:
Casual dining restaurants – These establishments represent the largest segment of the FSR market. Casual dining restaurants have higher pricing than family/midscales but lower than fine dining, and they offer a full bar. Examples include Chili’s, Olive Garden, and Outback Steakhouse.
Midscale restaurants (used interchangeably with family dining restaurants) – These establishments offer the lowest check size of any FSR. A majority of midscales do not serve alcohol, though some may have a limited alcohol selection (just beer and wine). Midscale examples include Denny’s, Cracker Barrel, and IHOP. Buffet restaurants are classified as midscale restaurants (eg Golden Corral).
Fine dining restaurants – These establishments have the highest price point of all FSRs.
