Fast-casual emerges as the sweet spot for restaurant industry growth The fast-casual category first became a thing in the 1990s (about the time Chipotle emerged) and came of age in the 2010s following the Great Recession, when consumers wanted more bang for their buck in the form of value, speed, and quality. The category came to be defined as a sort of elevated QSR but without the full-service component of casual dining. Fast forward to this post-pandemic environment and fast casual has become a rare sweet spot of growth for the industry as price point lines continue to blur between segments. In the past several quarters, as inflation-weary consumers pull back on visits to most casual-dining concepts and some quick-service concepts, fast-casual players like Potbelly, Chipotle, Wingstop, CAVA, and Shake Shack have enjoyed traffic lifts — in some instances quite significant. The segment has also outperformed on sales. According to recently released Technomic data, fast-casual sales in 2023 grew by 11.2%, followed by quick-service sales at 7.9%. Family-dining restaurants grew by 5.7% and casual-dining chains grew by 4.7%. Read more: https://lnkd.in/gua6xKxQ #foodservice #restaurant #foodandbeverageindustry
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Commercial Real Estate Development, PE, Operations, Leasing & Acquisitions - #retail #retailers #leasing #development #drivenbrands #drivethru #take5 #NNN #multifamily #buildtorent
Let's talk #restaurants: According to Yelp, there was a substantial increase in openings in the F&B sectors. Here are 3 data points: 1. 53,793 NEW restaurant openings in 2023, up 10% from 2022. 2. Openings in the "nightlife" category rose 11% y-o-y. 3. Food businesses (food trucks, juice bars, brewpubs) increased 16% y-o-y. In addition, Yelp's study indicates EVERY state surpassed pre-pandemic business openings for the first time since COVID (year marker 2019). #cre #retail #restaurant #retailrealestate #restaurantindustry #restaurantbusiness all information pulled from a CBRE study.
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The fast-casual dining industry is grappling with declining customer traffic as inflation and rising costs force budget-conscious consumers, particularly those with lower incomes, to cut back on restaurant visits. Instead of broad discounts, chains are employing more targeted promotions and emphasizing dine-in experiences to justify higher prices. The pandemic initially hurt the segment as in-restaurant dining declined, though fast-casual chains adapted by boosting off-premises channels like takeout and delivery. However, as the cost of dining out has increased significantly, consumers are now treating it more as an entertainment splurge, favoring viral fine-dining spots over casual chains. Independent restaurants were hit harder during the pandemic compared to chains. Said BAST AMRON LLP attorney Alejandra Mercedes Iglesia of a recent article by Bloomberg. https://lnkd.in/eyQ5HdbE. #insolvencylitigators #insolvencyandbankruptcy #insolvencyandrestructuring #Bankrutpcyinsights
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SEBI Registered Research Analyst INH000016904..... SMILE - Stock Market Investing Learning & Education
⭐ Barbeque Nation ⭐ : #Undervalued Restaurant Stock If you are interested in joinig our premium group, please contact https://wa.me/919311148700 ⭐ ⭐ Detailed report ⭐⭐ #CMP: 530, Upside #3X in 3 years. #Business : 👉🏻 Casual Dining Buffet Chain 👉🏻 Multi-City Presence 👉🏻 Unlimited Multi-Cuisine Buffets 👉🏻 Live Grills & Experiential Dining #Reasons: Why 70% down from ATH ? Entire #QSR (Quick Service Restaurant) sector faced #challenges due to the rise of food delivery services and reduced consumer discretionary spending caused by inflation. #Financials 👉🏻 Market Cap: 2000 cr, MCap/Sales = 1.5 👉🏻 Sales (1300 cr) - #Highest Ever 👉🏻 ROCE: 6%, OPM: 17%. 👉🏻 D/E: 1.74 (High but stable since 5 years) 👉🏻 Operating Profit: 200 cr+ ( almost #highest Ever) 👉🏻 Net Profit: #Negative due to high #Depreciation. #Technicals - #value zone (between 500-570) - #momentum (above 800) - #longterm (1700+ in 3 years) Overall we see QSR sector is near a good value zone and we think it can be a turnaround story. Going forward audience will find sweet spot between online delivery vs Fine Dining. Also with consumption spends going back to normal will give further boost. #DISCLAIMER: In our portfolios in range 500-550. #qsr #quick #service #restaurants #undervalued #stock #stockmarketindia #barbequenation
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Love seeing our own Ted Babcock’s name in the trade headlines. Few people know as much about #economictrends, #priceoptimization or #menuoptimization in the #restaurantindustry. Ted leads our consulting strategy team and when he talks, we listen. 💯🐟🥣
Fishbowl's Ted Babcock lays out ten economic influencing trends that affect restaurant profitability. #smart #trends https://lnkd.in/gTn5p8_6
10 Predictions for the Restaurant Industry's Economic Outlook
https://www.qsrmagazine.com
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President | Consumer Insights & Innovation Strategist | Author | Unlocking Joy To Drive Profitable Growth | Keynote Speaker, CSP | Ideation Facilitator | Trusted Media Guest & Contributor | Rower
Why is fast casual on fire? Inconvenience can lose you Guests- experience is undoubtedly how you win them. We know Fast Casual combines the best of two worlds: the speed and convenience of fast food with the quality and experience of casual dining and continues to show impressive growth in sales and traffic. And, there's no sign of it slowing down. Don’t be fooled when you read that consumers don’t want to dine in. They do, especially Gen Z! The issue is that the experience being served up isn’t that joyful! April 2024 Among Gen Z’s 41% Going out less yet splurging when they do ( +9 vs Total US) 56% Craving more social connections with friends and family ( +9 vs Total US) Thanks for the shout-out in the article Alicia Kelso Nation's Restaurant News “The winners will be the fast casuals that are experience-oriented because many casual dining restaurants are giving up that dine-in occasion in favor of off-premise growth.” #growth #fastcasual #experience #bringmorejoy
Fast-casual emerges as the sweet spot for restaurant industry growth
nrn.com
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When I read this article from Restaurant Business Online (https://lnkd.in/gjXehEET) two issues immediately came to mind. First, QSRs dug themselves into a enormous hole for years before the pandemic with dollar menus, extremely cheap promotions, and unsustainable pricing models. It set unreasonable patron expectations and provided the chains nothing by way of loyalty, competitive differentiation, or long-term strategic strength. Inevitably, when tough economic times hit coupled with federal and state legislation and shifting labor markets, prices had to go up and go up at a greater pace than full-service because that hole had become so deep. Second, the issue for QSRs now is not the price but the value. Price is too easy to talk about and too easy blame, just as it was too easy to fall back on...which we're seeing now with another round of cheap price promotions. From service and ambiance to food quality and consistency, many QSR operators are simply not providing value for patrons. That's why they are trading up to full service restaurants, often fine dining. Many QSRs would be well advised to stop focusing on cheap prices and to start building a better value proposition that will create a stronger and healthier long-term strategic position that is both ownable and defensible. #trends2024 #innovation #foodservice #foodandbeverageindustry #restaurants #consumerbehavior #consumerinsights #menumattersllc
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Chief Happiness Officer, CEO & President at Happy Joe’s Pizza | CEO & President at Tony Sacco’s Coal Oven Kitchen | Food Service Expert with a Passion for Guest Satisfaction
While trends vary depending on a local area, the sales recoveries that restaurants have needed following the pandemic have been partially driven by deliveries and other tech-driven services. Sit-down experiences are still sought after but have become less common, speaking in broad strokes in examining restaurant trends that is. What this means is that individual experiences are more valuable than ever, as dine-in is the growth vertical driving success for the industry. #RestaurantGrowth #RestaurantLeadership #RestaurantSuccess
Restaurant sales have have rebounded from the pandemic. But it's complicated
qz.com
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Sizing up how the end of 2023 was for restaurants #cre #commercialrealestate #goodmanre #restaurants #restaurantnews #restaurantindustry #restaurantrealestate #restauranttrends #restaurantsales
Sizing up how the end of 2023 was for restaurants
nrn.com
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🚨Insights fresh out of the box! 🚨 We're diving into the biggest updates in the restaurant industry-- Here are a few snippets: 📉Sales and Traffic Slowdowns: ➡️Same-store sales growth was -0.1% in June, which represented a 0.4 percentage point deceleration in sales growth for restaurants. ➡️Same-store traffic growth was -2.8% in June, which, although represented a small 0.3 percentage point improvement compared with May, remains very weak compared to historical performance. 💡Value is Key: ➡️As inflation remains a top concern, consumers are more focused on getting the best bang for their buck. ➡️Restaurants that deliver on value are seeing stronger traffic and sales growth. 📊Segment Performance: ➡️The top-performing industry segment from a same-store sales growth perspective in June was quick service, followed by fine dining and fast casual. ➡️Only two segments posted negative year-over-year sales growth in June: family dining and casual dining. ➡️All industry segments experienced negative same-store traffic growth in June. #RestaurantIndustry #EconomicOutlook #ValueMatters #RestaurantTrends #InflationImpact
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The wine industry is the latest of late adopters.📠📼💯 An industry that’s has a decades long internal war of attrition on Screw-Caps vs Corks. It’s for hard for them to understand why canned wine make sense. 🤔 Nate Calvert points out why fast casual is winning. Quality and convenience, is what today’s consumer wants. Having a wine wine opener and a drinking vessel isn’t convenient.🐌 Canned Craft Beer, Liquid Death, RTDs, are proof that the right liquid can win in cans.📈🚀 Necessity is the mother of innovation. Wine has been losing the past 10 years, and maybe now is the time to embrace innovation.
VP of Marketing and Business Development at KCooper Brands | Driving Revenue Growth, Institutional Effectiveness
The line between thriving and surviving has never been sharper as the restaurant sector grapples with shifting consumer preferences and economic strain. The last half of 2023 brought a marked slowdown in same-store sales across the sector, a result of persistent inflation both on the menu and within the broader economy. This trend was particularly pronounced among casual dining chains, with stalwarts like Olive Garden witnessing declines as they lose grip on lower-income consumers. Higher-end establishments also faced challenges, signaling a broad-based reevaluation of dining habits post-pandemic. The stark contrast in performance between struggling entities like BurgerFi and Noodles & Company, and those thriving like Wingstop Restaurants Inc. and CAVA, emphasizes a clear message: success hinges on understanding and adapting to the nuanced preferences of today's diner. The fast-casual sector, despite its challenges, is shining brightly, suggesting that consumers are gravitating towards experiences that offer both convenience and quality. The path forward requires operators have a balanced approach combining innovation with a sharp understanding of consumer trends, operational excellence, and sustainability. Learn more from Jonathan Maze here:
Restaurants lost customers and sales at the end of last year
restaurantbusinessonline.com
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