Fast casual is speeding up

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Foodservice
Remarkable. For the first quarter in two years, the food service industry is facing a bit of a slump. However, the drop in visitors is slim, as some niches show promising, strong growth. Take fast casual, the hybrid form of fast food and casual dining, anticipated to keep rising at a considerable rate between 2023 and 2031. The global market size of fast casual concept was valued at around $169 billion in 2022. It is estimated to reach $407 billion by 2031, a staggering CAGR of 10.2% between 2023 and 2031. This growth is mainly thanks to changing consumer preferences: people cut back on the more pricy casual dining experiences, but still want healthy, natural and freshly prepared food.

Fast casual is faster

In comparison, the global fast food market size is projected to grow from $972 billion in 2021 to $1,467 billion by 2028 at a CAGR of 6.05% during this period. This shows that while the fast food industry is larger in size, the fast casual sector is growing at a faster rate.

Despite already intense competition in this niche, more and more large players see the vast potential and will continue to create growth opportunities in the fast casual space. The high adoption of new technologies and heave use of social media channels such as TikTok makes more consumers turn to fast casual.

As you may have seen in our food service trend report, there is a shift towards more intense taste experiences and a premiumization of classical dishes. This is no different in fast casual: in the biggest fast casual market, the United States, classical fan favorites such as burgers and fried chicken are melded with flavors from Southeast Asia. Think of the increasingly popular Korean fried chicken. Global influences, local condiments and seasonings.

Potatoes at the core

Over 80% of the restaurant menus in the US offer one or more potato inspired products, such as fries, mash and hash brown. Also here, fast casual is projected to show the biggest growth in potato use: 5% over the coming 4 years. This indicates that potato products play a significant role in the menu offerings of fast casual restaurants, and their growth could positively impact the growth of these restaurants.

Conclusion

The fast casual restaurant sector is a rapidly growing segment within the foodservice industry. Its focus on providing high-quality, healthy, and freshly prepared food quickly and conveniently is resonating with consumers.

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