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Menu pricing isnt just about covering costsits about finding that sweet spot where profitability, customer perception, and operational reality meet. Set prices too low, and youre leaving money on the table. Most operators aim for food costs to be around 28-35% of the menu price, though this can change from restaurant to restaurant.
RMS just released our latest findings around consumer sentiment for Q1 , which revealed, among other things, that price is starting to matter—and not by an insignificant amount. When asked why they were getting less value from a restaurant visit, 82 percent reported higher prices. The sentiment has changed rapidly.
For the quick-serve (QSR) and Fast Casual industry, a re-examining of all operational processes is taking place at a rapid, yet reactive rate. At Aloha Poke, we discovered these nuances well before the global pandemic and were already shifting away from the typical Fast Casual model. COVID-19 global pandemic changed nearly everything.
These smart kiosks, found increasingly in QSR and fast casual restaurants, also enhance order accuracy, reduce labor costs and provide brands with valuable data on diner preferences and ordering patterns.
High menu prices have been an issue in the industry in recent years due to inflation, resulting in a decline in traffic as diners wish to spend less. In 2025, operators can offer elevated foodservice experiences at more affordable prices through emphasizing value in LTOs to drive sales.
According to a study conducted by Technavio , the fast casual restaurant industry will witness a compound annual growth rate of over 12 percent from now until 2026. I believe that fast casual continues to be a great place for savvy multi-unit restaurant franchisees to diversify. Which brings us back to the restaurant industry.
If you’re involved in any aspect of the Fast Casual category, you don’t need me to tell you that labor and distribution issues are real. The pre-pandemic fast-casual “chicken war” and the pandemic race to add chicken wings to menus, are good examples of putting many eggs in one basket.
There may be many reasons for this, including the fact that QSRs' fast, casual, and affordable nature may appeal to younger generations and individuals whose eating habits have changed post-pandemic. In 2025, QSRs should continue adapting to changing consumer habits, focusing on speed and convenience.
In 2025, the meaning of "value" to the dining consumer will extend beyond price to include a mix of experience, hospitality and affordability. To address this demand, restaurant operators must strike a balance between offering value-based pricing while ensuring cleanliness alongside a friendly, approachable staff.
The research stems from in-person chef interviews and a nationwide survey of more than 400 restaurant owners and operators spanning 47 states with respondents ranging from fine dining establishments to fast-casual venues, breweries, and caterers. "This Revenue growth in 2024 was largely driven by menu price adjustments.
Mark Brezinski has been heralded as "the father of Dallas’ fast casual food scene" He has opened more than 50 restaurants in the DFW area including Pei Wei Asian Diner, Bengal Coast, Velvet Taco and his newest venture Bizzy Burger Merchants. Even with all that, you may still fail. We eat everyday, we only dine occasionally.
Understanding your target market is the foundation of making smart decisions for your menu, pricing, and overall guest experience. Meanwhile, a fine-dining steakhouse targeting business professionals will prioritize a refined menu, premium pricing, and marketing efforts that focus on corporate events and high-end experiences.
. – Jackie Abril-Carlile, Auguste Escoffier School of Culinary Arts Culinary Instructo r and Executive chef and general manager at North Mountain Brewing Everything Has Changed At the onset of COVID, most fast casual restaurants went from primarily dine-in business to mostly takeout and delivery models.
Restaurant industry challenges are pushing operators to be more creative and efficient with many opting for more multifunctional spaces – especially in a fast-casual setting. At Maria Empanada, a fast-casual Latin concept the team is working on right now, the to-go boxes are artfully displayed, blending function and branding seamlessly.
| John Greim/LightRocket via Getty Images Once shunned by millennials, “uncool” chains are gearing up for a comeback For years, millennials were blamed for the death of the casual chain restaurant. And fast-casual chains , like Chipotle and Panera Bread, have been booming for years, with no signs of slowing in that sector.
based architecture and design firm / /3877, newly-available real estate offers prime locations and cheaper rent for fast casual restaurants such as taco shops and upscale burger joints. However, with prices rising, customers are choosier about where they spend their money. According to the hospitality experts at Washington D.C.-based
From full service to fast-casual to legacy fast-food brands, the one constant was disruption. This level of uncertainty is obviously making restaurant owners and fast-casual franchise owners nervous at the prospect of the industry going through a fundamental change, and what was considered standard practices may become unrecognizable.
For casual dining habits at restaurants like Olive Garden: 56 percent said they ate at casual restaurants frequently or occasionally. 29 percent said they rarely ate at casual restaurants. More likely to occasionally eat at casual restaurants. Nearly a third of restaurants (29 percent) are considering raising prices.
Fast casual restaurants are popping up faster than you can say "build your own grain bowl." " They're somewhere between a full-service casual dining restaurant and a quick-service restaurant or fast food chain. Looking for tips on starting your fast casual restaurant?
California's AB1228 pushed the fast-casual chain's wage up 20% and menu price hikes will cover the cost. But with first-quarter traffic up more than 5%, Chipotle officials are not worried.
While three in four survey respondents believe restaurant prices are higher, other factors, such as flavor, outweigh price when ordering specialty beverages, particularly in the full-service segment. During a time of increased price sensitivity, beverages create an opportunity to increase the total check.
It’s possible that price fluctuation for specific goods and materials have disproportionately impacted some restaurants.” Additionally, searches related to fast food and fast casual dining are up by 10 percent compared with Q2 2022 and eight percent more compared to Q3 2021. percent from 2022,” added Mudan.
The experience agency, who designed new restaurant prototypes for clients such as Burger King, Panda Express and Panera Bread, surveyed consumers to gain a better understanding of the current customer journey and what guests value most about the restaurant experience, particularly at casual dining and fast casual restaurants.
Matcha’s growing global popularity as a casually drunk beverage, as opposed to something ceremonial, has also “come back full circle into Japan” and driven an uptick in domestic interest, Mangan says. To Sazen, this shortage signals the need for manufacturers to increase production and stockpile tencha.
Trinas now sells 40 hot dog towers, which start at $35, in a night some as casual snacks for big groups, others as the centerpiece of celebrations. Thats market price.) At Trinas, $35 is the base price, though swapping in loaded hot dogs or veggie dogs adds an upcharge.
While they crave the value of QSR – 34 percent of families reporting higher spending at QSRs this month compared to 18 percent of childless households – they are inclined toward fast casual and full-service restaurants as well. Strategies for Attracting Family Business Given a -2.1
“We are seeing sign-on bonuses at fast food and fast casual locations, something never seen before in the industry. Fast casual will continue to push out full-service brands because they can assemble food in front of you and get food to the customer more quickly. ” One way to do so: increase menu prices.
Why Takeout Still Reigns (And How Operators Should Price). “But now it’s a normal course of business and should have its own strategy that drives everything from menu to staffing to pricing.” Breakfast and casual eateries/coffee shops can be optimistic. Why Breakfast Is Back. see below).
The fast-casual chain has held back on pricing in most regions while focusing on consistent portion sizes. But to address rising inflation, it raised menu prices about 2%.
Casual dining establishments must choose an identity to keep traffic flowing. Pressures from minimum wages, ever-increasing price competition, traffic declines, new and evolving consumer behavior have created immense challenges for the restaurant industry, most pointedly in casual and dining quick service segments.
What were common menu items where prices were raised? . Sixty-seven percent of respondents raised prices throughout their entire menu, and 25 percent on a few items. Because the cost of nearly everything—from ingredients to services—has increased, they have no choice but to raise prices across the board.
Price-conscious consumers began to shift away from sit-down restaurants in 2023 after embracing them a year earlier. That made growth difficult to come by.
Additionally, menu prices at casual dining establishments rose by an average of 9 percent year over year from 2021. The decreased patronage along with inflation increases running costs, which means increased menu prices. In August of this year, the cost for consumers of purchasing food away from home rose by 8.3
Operators of the fast-casual barbecue chain have been closing stores at a rapid rate after years of profitability challenges. The problems come during a brutal time for many restaurant chains. But some franchisees argue that the system isnt working.
Technomic’s revised predictions for 2024 revealed a challenging road ahead for the restaurant industry, which has been plagued by rising prices and shifting consumer behavior since the onset of the pandemic. percent rise in prices means that sales growth may barely keep up with inflation. percent sales increase by 1.5
To reduce menu confusion and minimize price sensitivity, Ori’Zaba’s Scratch Mexican Grill recently rolled-out a rengineered and easier-to-read menu. The Ori’Zaba team told Modern Restaurant Management (MRM) magazine they watched people walk in and have a physical reaction to the three pricing tiers. Double Your Meat!”
We’ve seen this trend take off at many quick-serve or fast-casual chains, where displays and screens provide entertainment value for patrons as they wait for their meals or decide if they are staying for dessert. Or, in some circumstances, allowing patrons to pre-order their food via these applications without engaging with waitstaff.
Restaurant leaders representing nearly 3,700 QSR, fast casual, casual dining, and fine dining locations shared 2024’s top challenges and opportunities alongside plans for investment in back-of-house technology, increased sales, and team training, benefits, and support. LTO Impact A new Placer.ai
On Menu Ingredients We predict the rise of “bougie” ingredients like caviar, lobster and truffle popping up at restaurants at more affordable prices and in more casual settings like fast casuals and QSRs. General liability claims are not likely to fade any time soon, either.
Net sales are primarily driven by average check increases and pricing opportunities are diminishing. When asked if they had ordered more or less from full-service, fast-casual and QSRs in the past month, respondents were primarily bearish, except when it came to QSRs. Inflation slowed to 3.4 percent in December 2023 vs. 6.5
When lower-income diners are feeling budget strain, the fast-casual Portillo's feels it most in the drive-thru. To address that, the restaurant chain is working to get orders through car windows faster.
This trend reflects the growing popularity of drive-thru and fast-casual dining, coupled with the demand for digital technologies such as QSR digital signage and QR codes. This capability can prove invaluable for refining pricing strategies, optimising ingredient and waste management, and planning forthcoming shifts, among other benefits.
By restaurant category: 50 percent reported using quick-service restaurants “more” or “much more” 36 percent increased visits to full-service restaurants 39 percent increased visits to casual eateries 39 percent increased visits to breakfast restaurants So who are these frequent users?
Since 2006, Tender Greens had established its presence as a go-to fine-casual restaurant that offers more than a meal. Looking to continue on the tangent of delivering a unique fine-casual dining experience to its customers, Tender Greens aimed to double its physical footprint and grow its revenue to reach $100 million.
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