Fast Casual Restaurants - US - 2021

OVERVIEW
What you need to know
Key issues covered in this Report
Definition
Market context
Economic and other assumptions
COVID-19: US context
EXECUTIVE SUMMARY 
Top takeaways
Market overview
Figure 1: Total US sales and fan chart forecast of limited-service eating places*, at current prices, 2016-26
Impact of COVID-19 on fast casual restaurants
Figure 2: Short-, medium- and long-term impact of COVID-19 on fast casual restaurants, 2021
Challenges and opportunities
Fast casual falls short of QSR and casual visitation
Figure 3: Restaurant visitation in the past three months, 2021
Make it easy for Gen Zs, Millennials to stay connected
Figure 4: Fast casual restaurant attitudes, by generation, 2021
Break the mealtime habits
Figure 5: Restaurant visitation occasions in the past three months, by generation, 2021
Enhance the parent experience
Figure 6: Interest in fast casual concepts , by parental status, 2021
Get young adults craving with cuisine exploration
Figure 7: Fast casual cuisine interest, by age, 2021
THE MARKET – KEY TAKEAWAYS 
LSRs boom post-pandemic
Fast casual struggles with pandemic fallout
Supply of food and workers are running low
MARKET SIZE AND FORECAST
LSRs expected to recover to pre-pandemic levels in 2021
Figure 8: Total US sales and fan chart forecast of limited-service eating places*, at current prices, 2016-26*
Figure 9: Total US revenues and forecast of limited-service eating places*, at current prices, 2016-26
MARKET FACTORS 
Foodservice faces a worker’s rights reckoning
Gearing up for another Roaring ’20s
Figure 10: COVID-19 Tracker, 2021
The fast casual identity crisis
Supply chain fallout
Figure 11: Changes in consumer food price indexes, 2020-21
COMPANIES AND BRANDS – KEY TAKEAWAYS 
Digital sales incentivize ongoing digital investment
Fast casuals blur segment lines
Off-premise opportunities remain
COMPETITIVE STRATEGIES
Digital strategies level the competitive landscape 
Comfort foods and quality options
Figure 12: Menu innovation, 2020
MARKET OPPORTUNITIES 
Virtual food halls tap experience, value to extend fast casual reach beyond on-premise 
Fast casual favorites can differentiate retail foodservice programs
Figure 13: Fast casual innovative concept interest, 2021
Fast casual menus still have room to go global
Figure 14: Cuisine interest, 2020
THE CONSUMER – KEY TAKEAWAYS  
Fast casual recovery sluggish
Show non-parents some love
Turn a healthy reputation into an experience
Diversify menus beyond meals
RESTAURANT VISITATION 
Fast casual recovery sluggish 
Figure 15: Restaurant visitation in the past three months, 2020-2021
Premium upgrades can extend the opportunities 
Figure 16: Restaurant visitation in the past three months, by income level, 2021
Millennials, parents are the primary fast casual diners
Figure 17: Restaurant visitation, fast casual, by key demographics, 2021
Hispanic consumers are important fast casual diners
Figure 18: Restaurant visitation, by Hispanic origin, 2021
FAST CASUAL RESTAURANT OCCASIONS 
Move beyond lunch and dinner to satisfy younger palates, occasions
Figure 19: Restaurant visitation occasions in the past three months, by generation, 2021
Figure 20: Restaurant visitation occasions in the past three months, by parental status, 2021
FAST CASUAL RESTAURANT OCCASION INTEREST
Help facilitate the next Roaring ’20s
Figure 21: Restaurant occasions interest, by age, 2021
Draw even more parents in for dinner and drinks, family style
Figure 22: Restaurant occasions interest, by parental status, 2021
FAST CASUAL RESTAURANT FACTORS
Figure 23: Fast casual restaurant factors – NET any rank, 2021
Younger generations drive the need for updated convenience 
Figure 24: Fast casual restaurant factors – NET any rank, by generation, 2021
Location, cuisine drive non-parent choice 
Figure 25: Fast casual restaurant factors – NET any rank, by parental status, 2021
Help Hispanic consumers looking for healthier options 
Figure 26: Fast casual restaurant factors – NET any rank, by parental status, 2021
INTEREST IN FAST CASUAL RESTAURANT CONCEPTS 
Tap into the power of retail partnerships
Figure 27: Fast casual innovative concept interest, 2021
Promotions, products, partnerships can build loyalty with parents 
Figure 28: Fast casual restaurant innovative concept interest, by parental status, 2021
Increase Gen Z engagement through healthy convenience
Figure 29: Fast casual restaurant innovative concept interest, by generation, 2021
FAST CASUAL RESTAURANT CUISINE INTEREST
Fast casual fans hungry for more varied tastes
Figure 30: Fast casual cuisine interest, 2021
Young adult palates cravings go beyond mainstream
Figure 31: Fast casual cuisine interest, by age, 2021
Hispanic consumers are hungry for cuisine growth
Figure 32: Fast casual cuisine interest, by Hispanic origin, 2021
FAST CASUAL RESTAURANT ATTITUDES
Turn a healthy reputation into an experience
Figure 33: Fast casual restaurant attitudes, 2021
Fast casuals can be the third space, and then some
Figure 34: Fast casual restaurant attitudes, by generation, 2021
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Forecast
Consumer survey data
Abbreviations and terms
Abbreviations
APPENDIX – THE MARKET
Figure 35: Total US revenues and forecast of limited-service restaurants*, at inflation-adjusted prices, 2016-26