The lines of competition are blurring between restaurant segments as operators look for new ways to gain share in a flat market. This evolution in diners’ decision sets is driven largely by Quick-Service Restaurants, in a strategy often referred to as the “premiumization” of QSR. It is a trend that aims to not just take share from one QSR to another, but to entice Full-Service Restaurant customers into their doors as well, and attract higher spend. If any FSR operators feel they have nothing to fear, be assured that your customers are considering QSR as an alternative.
The emerging Fast Casual segment is a group of restaurant chains that aim to carve out a space between the strengths of QSR and Casual Dining. They find a new balance between the fast service, affordability, and portability typical of QSR, and the food quality, creativity, atmosphere, and personal service of Casual Dining.
| While Fast Casual has grown to capture four per cent of restaurant dollars in the U.S.A., it has so far captured less than one per cent of restaurant spend in Canada. So why is Fast Casual getting so much attention? Fast Casual spend in Canada has averaged 15 per cent growth every year for the past five years at the same time Commercial Foodservice averaged a mere three per cent annual growth. While QSR customers show no traffic growth for lunch or supper in the past few years, Fast Casual customers are willing to spend about 30 per cent or $2 more at these dayparts. The top types of foods customers are ordering at Fast Casual are from categories very familiar to QSR, but there are gaps that present opportunities for further developing the segment. Fast Casual is well known for serving high-quality, chef-inspired burgers, fries, sushi, and Mexican food. However, there is an opportunity to develop other popular items like sandwiches, pizza, coffee, and baked goods. Fast Casual customers also skew towards diet carbonated soft drinks, bottled water and other non-carbonated beverages. Some operators will even serve wine and beer. |
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