News

Fast casual industry still growing

July 11, 2016

The fast casual industry is growing at a steady rate and outranking its counterparts, according to a Technomic report. In year-over-year results, cumulative sales for the top 250 fast-casual chains were up 11.6 percent, a moderate decrease from the 13.5 percent growth rate observed in 2014. Aggregate unit growth also clocked in at 9.6 percent, compared to last year's 9.5 percent, according to the report. Of the 250 chains featured in the report, more than 90 had year-over-year sales and unit growth rates both in the double digits.

The major players in the segment laid a strong foundation for growth as each of the Top 10 chains had year-over-year sales marks surpassing 6 percent. Fast casual pizza sales grew at a rate of 36 percent, while chicken-focused chains grew at a rate of 16 percent. The specialty category, including BBQ, ethnic  and health-focused, had a sales growth rate of 17 percent overall.

"Whether it's for pizza, sandwiches, or salads, we have seen customization transition from being an amenity for consumers to becoming a necessity," Darren Tristano, President of Technomic, said in the report. "As evidenced partially by the notable explosion of build-your-own pizza chains, customizability has become a hallmark of successful fast-casual chains and is firmly in place as an expectation among consumers looking either to trade up from traditional fast food or down from casual dining."