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Fast casual dominates fastest-growing brands; Pieology cracks top 500, Technomic says

Technomic Inc. unveiled its Top 500 Chain Restaurant Report, which shows the fast casual sector increased collective annual sales by 12.8 percent to $30 billion in 2014.

May 7, 2015

Technomic Inc. unveiled its Top 500 Chain Restaurant Report, which shows the fast casual sector increased collective annual sales by 12.8 percent to $30 billion in 2014, according to a company announcement. The growth rate nearly doubled the next-largest increase from any other restaurant segment.

After disclosing its annual ranking of the 500 largest chain restaurants, Technomic revealed that fast casual's one-year growth rate exceeded its five-year compound annual growth rate of 11.7 percent, suggesting the sector has plenty of room to grow in both sales and unit expansion in the U.S.

"Whether they offer the customization of a build-your-own format or just their made-to-order signature dishes, fast-casual chains clearly hit the sweet spot with consumers," said Darren Tristano, executive vice president of Technomic, in a statement. "The winning formula of high-quality menu items in upscale settings, with high-touch service at prices between fast food and casual dining, can be applied to any kind of food and is powering growth in segments from burgers and barbecue to sushi and pizza. We'll continue to see fast casual drive much of the sales growth in the restaurant industry for years to come."

Four of the five fastest growing brands last year were fast casual, including the first customizable pizza chain to break into Technomic's annual ranking of the 500 largest restaurant chains, Pieology, the announcement said. Pieology increased its annual sales 230 percent from the previous year to $44.6 million in 2014, with a unit count that tripled to 42 locations.

Fast casuals PDQ and BurgerFi doubled their annual sales by 119 percent and 111 percent, respectively, finishing No. 2 and No. 3 on the fastest-growing brand ranking. Del Frisco's Grille followed with a sales increase of 58 percent for 2014, and "better burger" brand The Habit Burger Grill placed No. 5 with a 46 percent gain, the press release said.

Each winner touts an aspect of its brand that makes it stand out to the crowd: Pieology offers unlimited pizza toppings for a set price; PDQ abstains from using freezers and microwaves; BurgerFi buildings are made from recycled materials and stocked with chairs made from recycled soda bottles, cultivating its eco-friendly reputation.

Fast casual also dominated larger restaurant chains in sales growth, with at least $200 million in annual systemwide sales, Technomic found. Jersey Mike's Subs increased sales 30 percent to $523 million in 2014, ranking just ahead of Dickey's Barbecue Pit, which recorded a 29 percent gain and $426 million in annual sales. Chipotle Mexican Grill, with its 10-figure base, increased annual sales 28 percent to $4.05 billion.

The Technomic Top 500 Chain Restaurant Report provides a one-year sales forecast by menu category, an update on franchise and international activity, an expanded Outlook & Opportunities section, new Key Themes, and more, the company said.