It is projected to grow at a CAGR of 15.2%.
The global fast casual restaurant market size is expected to expand by US$302.5 billion from 2024 to 2028, driven by a demand for innovative and customizable food menus and a trend toward chef-led fast casual franchises, as reported by Technavio.
During the forecast period, the market is anticipated to achieve a CAGR of 15.2%.
However, fierce competition from quick-service restaurants presents a challenge. Major players in the market include Chipotle Mexican Grill Inc., DICKEYS BARBECUE RESTAURANTS Inc., Erbert and Gerberts Sandwich Shop, EXKi SA, and Famous Brands Ltd.
Additional notable companies include Five Guys Enterprises LLC, Godfathers Pizza Inc., LYKE Kitchen, McAlisters Franchisor SPV LLC, MOD Super Fast Pizza LLC, Noodles and Co., Panda Restaurant Group Inc., PORTILLOS Inc., Potbelly Corp., Restaurant Brands International Inc., Shake Shack Inc., Smashburger Servicing LLC, The Wendy’s Co., Wingstop Inc., and YUM Brands Inc.
Market Driver
Technavio highlighted that the dine-in segment is projected to experience substantial growth during the forecast period; it is the largest segment and was valued at US$148.80 billion in 2018.
Industry research indicates that about one-third of children and teenagers in the United States, Canada, and various Asian and European countries consume sandwiches, burgers, or other fast-food items daily.
Furthermore, around one-fifth of these individuals rely on fast-food sources for more than half of their daily nutritional requirements.
To meet the daily dietary needs of children and teenagers, fast-casual restaurants in the United States, the United Kingdom, and Australia have added various healthy meal options to their menus.
They are also offering 100% natural fruit-based smoothies, free from added sugars, artificial colors, and flavors, focusing on appealing to children and millennials.
In the United States, an astonishing 290 million to 300 million sandwiches are consumed daily, primarily by millennials, who are attracted to quick, fresh, and convenient meal options.
Approximately 65% of millennials prefer grab-and-go sandwiches.
Additionally, a significant number of consumers favor purchasing sandwiches from restaurants over preparing them at home, with over 50% choosing this option.
Key Regions
North America is expected to account for 40% of the global market growth during the forecast period.
Analysts from Technavio have noted that customization is a crucial aspect sought by many consumers in North America, particularly among millennials.
An example is Chipotle Mexican Grill, which offers a wide range of food options served in bowls, enabling customers to customize their orders easily by substituting ingredients.
The report also mentioned that ongoing innovation and updating of menus will play a vital role in driving industry growth in Canada throughout the forecast period.
Moreover, consumers in Canada are increasingly steering clear of food options perceived as unhealthy.
With a rising focus on health and wellness, there is a consumer trend toward using natural and fresh ingredients in food preparation.
In response, fast-casual restaurants are prioritizing the inclusion of healthy, gluten-free options, alongside a variety of vegetarian and vegan dishes on their menus. These trends are expected to drive market growth in the region during the forecast period.
