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Consumers’ money worries are trickling down, and fast-casual brands are flooding the market faster than ever.
This article first appeared in BISNOW.
No matter where in a market a fast-casual restaurant opens, there is demand for the fresh, affordable and relatively healthy options that fast-casual chains provide, said Joe Hannon, general manager of inventory and sales for Restaurant365, a restaurant software company.
The desire for healthy options is exemplified by fast-casual restaurant sales increasing 3.2% year-over-year during the first half of 2024, while quick-service restaurant sales stayed flat, he said.
Inflation hit the rest of the restaurant industry hard, but fast-casual restaurants’ efficiency and price points helped them weather the storm, Hannon said. Fast-casual food also travels well, which boosted their sales 20% to 30% in the early days of the pandemic when no one was eating out and ordering delivery instead, he said.
“You can’t craft a better situation for a delivery-type service than Covid. Not that it was a good situation at all, but that is the perfect storm for something like delivery services,” Hannon said.
That growth that started during the pandemic is now being turbocharged by consumers watching their wallets and seeking convenience, and CRE and investors are taking notes and shifting strategies.
“A lot of franchisees are out there that can spin those things up pretty quick and start, ideally, turning a profit a lot faster than most other restaurant types,” Hannon said.
Read the full article in BISNOW.
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