Fast Casual is NOT Fast Food

In proper preparation for the Fast Casual Executive Summit coming up in Chicago this month, fastcasual.com has put together a list of the top 10 fast casual restaurants in the US based on 2010 sales.

But first, let's be clear about how they define fast casual: the price is approximately 15.00 or less per cheque AND the decor is modern and upscale AND the service does not include wait staff AND, finally, the food is fresh and made to order. That narrows down the list but I think to be clearer, it needs to be stated that fast casual promises a higher quality food and atmosphere than fast food. Fast casual is NOT our traditional idea of fast food.

A couple of the Top 10 are already familiar here in Canada: Five Guys and Chipotle Miexcan Grill. What's noteworthy is that of the Top 10, three are Mexican restaurants. Surely demographics have an impact on this stat and therefore it makes me wonder would Mexican fare be so prominant in a Canadian Top 10 Fast Casual? Would Asian food? Chipotle, by the way, was one of the first fast casual restaurants on the scene and McDonald's had a majority share in Chipotle until 2006!

If you're wondering if fast casual is simply a fad that will pass, or a quick spash in the pan (pun intended), think again. Fast casual has had a huge impact on the food industry and growing. It appeals to people's interest for a more healthy option, it's quick for a busier and busier lives, and it offers varied food choices. The numbers speak for themselves as shown in the chart below.

It's little wonder that fast food operations are looking to upscale their decors and offer healthier options or that casual dining operations are looking to move towards "smaller footprint" stores with a smaller menu. It will be interesting to see what our restaurant scene looks like even as little as two years from now with the big impact of fast casual operations.

Restaurant Trend Toward Breakfast

Many restaurant organizations in Canada looking for new ways to increase their bottom line have discovered breakfast and hope it will save the day.

While many skip the most important meal of the day, restaurants seek to capitalize on the approximate 1 in 5 people that eat breakfast both at home and at restaurants. According to NPD's most recent report, for the majority of Americans who do eat breakfast, 14% said they typically eat breakfast at restaurants. The report surveyed 27,179 participants.

When approaching the breakfast market, restaurants should be mindful of the study's detailed finding that suggest that of consumers 18 - 34 years old, 28% of men and 18% of women skip breakfast, while 18% of men 35 - 54 years old and 13% of women in that age group go without a morning meal. And apparently, we do get wiser as we age, at least when it comes to eating: older consumers are the least likely to skip breakfast, with 11% of men 55 and older and 10% of women in that age group going without.

The Chicken or The Egg Conumdrum

In thinking about the food trends in Canada, I wonder if people eat healthier or make choices based on what's available or do their demands dictate what restaurants produce? This harkens back to the chicken and the egg conumdrum, and I still haven't figured that one out yet.....Whatever your stance, here are some interesting stats about what food consumption trends are like at retaurants these days from fastcasual.com ....


According to the latest research from Mintel, more than 60 percent of restaurant-goers think nutritional information should be posted on menus, and two in five (44%) think federal or local governments should facilitate such actions.

"Menu transparency will allow consumers to have control over their food decisions with a complete understanding of what they’re eating," said Eric Giandelone, director of foodservice research at Mintel. "However, getting people to eat healthier requires more than just posting calories or adding healthy options to the menu…the food also has to taste good."

When going out for dinner, nearly 60 percent of survey respondents said they want something that tastes great and 23 percent claim to want to eat a healthy meal. Only 14 percent of diners said they are never interested in ordering a healthy restaurant meal. This insight shows that restaurant patrons are attracted to healthful meals, as long as they’re full of flavor.

Nearly half of survey respondents report eating healthier in restaurants in the past year and people have different methods for doing so. Reducing fat (67%) leads the way in strategies for adopting healthier eating habits at restaurants, followed by eating more fruits and vegetables (52%). Meanwhile, 49 percent of patrons are cutting calories by simply ordering less food.

"From a restaurant’s perspective, there is a concern that healthy menu items may not sell, but there is also a danger to having a calorie-laden menu when the calorie count law starts taking effect," Giandelone said. "There may be some initial consumer shock at the calorie counts and chains may have to start listing lower-calorie options or smaller portion sizes to help diffuse this unpleasant surprise."