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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.
For the quick-serve (QSR) and FastCasual 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 FastCasual model. Leaner and Meaner Buildouts.
According to a study conducted by Technavio , the fastcasual restaurant industry will witness a compound annual growth rate of over 12 percent from now until 2026. I believe that fastcasual continues to be a great place for savvy multi-unit restaurant franchisees to diversify. Here are three reasons why.
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.
If you’re involved in any aspect of the FastCasual 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.
Mark Brezinski has been heralded as "the father of Dallas’ fastcasual 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.
These smart kiosks, found increasingly in QSR and fastcasual restaurants, also enhance order accuracy, reduce labor costs and provide brands with valuable data on diner preferences and ordering patterns.
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.
. – 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 fastcasual 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. Litle Owl What are the advantages of having a smaller, more effective layout and footprint? How does it dovetail with sustainability goals?
Fast Food Flavor Report Fast food brands and restaurants are scratching their heads trying to figure out what flavors are a bonafide trend and which are just a fleeting fad. 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.
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.
based architecture and design firm / /3877, newly-available real estate offers prime locations and cheaper rent for fastcasual restaurants such as taco shops and upscale burger joints. Even with the closure of some chain restaurants, fast food and convenience will always be a prevalent part of the industry landscape.
Fastcasual 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 fastcasual restaurant?
From full service to fast-casual to legacy fast-food brands, the one constant was disruption. The “chicken wars” had captured most headlines in the months leading up to the COVID pandemic, and a crowded field of fast food and fast-casual concepts have made attempts to get into the game.
When we asked about fast food: 29 percent said they eat fast food frequently. 46 percent said they occasionally dine at a fast-food restaurant. Only five percent said they never eat fast food. 29 percent said they rarely ate at casual restaurants. 29 percent said they rarely ate at casual restaurants.
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.
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.
“We are seeing sign-on bonuses at fast food and fastcasual locations, something never seen before in the industry. Fastcasual 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.
It’s possible that price fluctuation for specific goods and materials have disproportionately impacted some restaurants.” Additionally, searches related to fast food and fastcasual dining are up by 10 percent compared with Q2 2022 and eight percent more compared to Q3 2021. ”
They expire very fast,” she says. 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. A novice matcha drinker, Lee travels to Japan often and always buys one or two tins.
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 fastcasual and full-service restaurants as well. Strategies for Attracting Family Business Given a -2.1
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. ” It gets better. It will be interesting to see how this shakes out, but one thing is for sure.
For fast-food restaurants, the average paid CAC is $27, while the average organic CAC is around $9. Fastcasual and casual dining restaurants are in the middle ground, between $83 and $125 of paid CAC. For the restaurant industry, the CAC can range between $27 to $180.
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
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.
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 fastcasual restaurants.
In addition to the emergence of indoor dining, it explores rising competition between fast food and fastcasual restaurant brands with COVID restrictions loosening. “The data strongly signals long wait times are a vulnerability for fast food restaurants as they compete for customers. . Fast food reigns supreme.
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.
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
Nowadays, vegan food is becoming normal in restaurants and fast food joints. Plant-based eating was previously limited to some selected restaurants and casual cafes. Vegan restaurant industry has a bright future as fast food giants like McDonalds, KFC, Subway, and Burger King enter the vegan food industry.
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 fastcasuals and QSRs. General liability claims are not likely to fade any time soon, either.
This migration could be a goldmine for casual/fast food brands if only they had the people to support them. It’s not unusual for a fast-casual restaurant with over 1,000 locations to manually save the recipes on these drives and then send them to the field teams, and hope they’re properly uploaded.
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%.
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.
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. While you can not always control the commodity pricing, you can control how you manage it by reducing waste, optimizing efficiencies and leveraging margins.
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!”
Here are a few examples of restaurants with names that ooze concept: Parm: Casual Italian, known for their Chicken Parm Sandwiches. Umami Burger : Casual burger spot with an empaths on flavor. Conversely, a casual neighborhood sandwich shop may name their sandwiches after local heroes or landmarks. Fast Food Chains.
Consumers are realizing it’s a delicious wine with a good price point. Those who traditionally favor casual dining chains with full service may trade down to fastcasual while those who typically dine in fastcasual may dip into lower price points at fast food.
Marketing trends, mobile data insights show that Gen Z has a considerable appetite for restaurants, clean eating, fast-casual, and exciting twists on healthy dining options. Wendy’s and Burger King are two masters in the genre, sparking lots of interest and engagement that’s helping to drive fast-food growth.
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.
All these markets are in areas where restaurant restrictions had been eased or lifted as of May, and fastcasual chain customer transactions grew. Most fastcasual chains, which relied more heavily on dine-in and didn't have drive-thru operations, were not. In May 2021, total U.S.
Come June, the Labor Department's Consumer Price Index saw that annual rate climb even further to 9.1 Almost one in five respondents stated ordering more or much more from fastcasual and full-service restaurants, an increase of four percent from Q1. Consumers see a drop in gas prices , bringing them back to drive-thrus.
Most notably, consumer spending at restaurants appears to be holding-up relatively well this summer despite aggressive menu-price increases in the first-half of the year." Consumer spending at restaurants appears to be holding-up relatively well this summer despite aggressive menu-price increases in the first-half of the year.
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