Fast Casual Restaurant Market

Fast Casual Restaurant Market Size

Global Fast Casual Restaurant Market size was recorded at USD 190.51 billion in 2023, which is estimated to be valued at USD 209.77 billion in 2024 and reach USD 451.04 billion by 2031, growing at a CAGR of 11.56% from 2024 to 2031. The proliferation of mobile ordering and delivery platforms, and shifting consumer demand for healthier ingredients from traditional fast food are the major drivers for the market.

In the scope of work, the report includes services offered by companies such as Panera Bread, Chipotle Mexican Grill, Qdoba Restaurant Corporation, BurgerFi International, Inc., Smashburger, Inc., The Halal Guys, Shake Shack, Five Guys Enterprises, LLC, Noodles & Company, MOD SUPER FAST PIZZA, LLC, and others.

Technology adoption offers a crucial opportunity for fast casual restaurants to boost both operational efficiency and customer experience. The integration of advanced point-of-sale (POS) systems, self-order kiosks, and mobile ordering apps has significantly reduced wait times, streamlined order processing, and minimized human error.

Advanced features allow faster and more accurate service which enhance data collection, enabling restaurants to better understand consumer behavior and preferences. In terms of customer experience, the use of mobile ordering and delivery platforms gives consumers the convenience of placing orders anytime and anywhere, offering personalized recommendations based on previous purchases.

• In March 2024, the National Restaurant Association's Restaurant Technology Trends Report highlighted that tech adoption is accelerating across the industry. While operators see opportunities to improve customer experience, marketing, and efficiency, consumer attitudes toward technology vary by age group and service type. Importantly, 76% of operators believe tech provides a competitive advantage, though many recognize the need to stay current. The report emphasizes that strategic alignment of technology with customer preferences is more crucial than being on the cutting edge.

Restaurants are also utilizing AI-powered chatbots for customer service inquiries, further reducing wait times and enhancing satisfaction. By automating back-end operations, such as inventory management, scheduling, and supply chain coordination, restaurants can optimize resource allocation and reduce waste, ultimately improving profitability.

Overall, the implementation of technology in the market is creating more streamlined, flexible, and customer-centric dining experiences, positioning them to better compete in a fast-evolving space.

A fast casual restaurant is a hybrid dining concept that merges the convenience of fast food with the quality and experience of casual dining. These restaurants offer higher-quality, freshly prepared food compared to traditional fast-food outlets, often emphasizing healthier and more gourmet options. The menu at a fast casual restaurant may include customizable meals such as salads, bowls, and sandwiches, allowing customers to choose their ingredients and meal combinations.

The nature of fast casual establishments is characterized by a quick service model, but unlike fast food restaurants, they often focus on made-to-order meals prepared with fresh ingredients. Service is typically counter-based, meaning customers order and pay at the counter, but the dining experience is more relaxed, with comfortable seating and modern, attractive interiors.

Fast casual restaurant market caters to a demographic that values both speed and quality, offering a middle ground between fast food and full-service dining. This segment has grown significantly as consumers increasingly seek convenient, yet healthier dining options without compromising on taste or atmosphere.

Analyst’s Review

In the market, companies use a range of strategies to maintain growth and secure market share in an increasingly competitive landscape. One of the key imperatives for players in this segment is continuously innovating the menu to cater to the evolving consumer preferences, particularly the demand for healthier, customizable, and plant-based options.

Expansion of digital and delivery capabilities has also become crucial, with many restaurants investing in mobile apps, loyalty programs, and delivery partnerships to enhance convenience and drive repeat business. Companies are focusing on expanding their geographical footprint, especially in untapped urban areas and international markets where the demand for higher-quality dining experiences is growing, which is expected to aid the fast casual restaurant market.

• In August 2023, Carccu launched an extensive selection of eco-friendly fast food packaging solutions, including wraps, burger pockets, grill pockets, pizza boxes, cups, lids, cup holders, containers, bowls, plates, serving trays, wooden utensils, and takeaway bags (with and without handles), for restaurants supporting sustainable food service operations.

Another vital strategy is the adoption of sustainable practices, with an increasing number of restaurants switching to eco-friendly packaging, reducing food waste, and sourcing ingredients locally.

Current growth in the sector is being fueled by more and more companies aligning with consumer demand for healthier and more sustainable dining, with technological innovations and efficient operations further amplifying the market. Key players must continue evolving to stay competitive, managing costs while meeting customer expectations.

Fast Casual Restaurant Market Growth Factors

The expansion of technology-driven services, such as mobile ordering and delivery platforms, is reshaping the fast casual restaurant market by providing enhanced convenience and accessibility to customers. Mobile apps allow consumers to place orders on the go, customize their meals, and schedule pick-up or delivery, minimizing wait times and improving the overall dining experience.

These platforms also help restaurants manage high volumes of orders more efficiently, reducing pressure on in-house staff and boosting operational efficiency. Delivery platforms, integrated with mobile apps, extend the restaurant’s reach beyond physical locations, enabling them to serve a broader audience without additional seating or staff.

• For instance, in April 2024, Biscuitville partnered with Lunchbox to launch its first native online ordering platform in the growing online food delivery market. This initiative supports Biscuitville’s expansion strategy, with plans to open 7-8 new stores annually and improve guest engagement.
• Similarly, in August 2024, Shiji integrated its Infrasys Cloud POS with Wi-Q, optimizing mobile ordering for hospitality businesses. This integration would enhance guest experience by simplifying the ordering process and improving menu management for operators.

This driver is particularly crucial in an increasingly digital world where consumers seek ease and speed in all aspects of their lives. Additionally, mobile ordering systems offer valuable insights through data analytics, helping restaurants better understand customer preferences and optimize their menu offerings. As competition grows, fast casual chains that prioritize technology-driven services will be better positioned to attract tech-savvy, convenience-focused customers and drive long-term growth.

High operating costs, including labor and real estate expenses, present a significant challenge for fast casual restaurants, particularly as the industry grows more competitive. Labor costs are escalating due to minimum wage increases and the demand for skilled employees to maintain high service standards.

High real estate costs, especially in prime urban locations, also continue to add to the overall operating costs. These expenses can squeeze profit margins, making it difficult for restaurants to invest in growth initiatives such as menu innovation or digital infrastructure. In response, many operators are exploring new ways to mitigate this challenge.

Some are adopting technology, such as self-service kiosks and digital ordering systems, to automate tasks and reduce the need for front-of-house staff. Others are experimenting with smaller, more efficient store formats that require less real estate, focusing on delivery and take-out services.

Partnerships with food delivery platforms can also help restaurants reach a wider customer base without increasing their physical footprint, balancing high operational costs. By strategically managing costs and adopting efficient technologies, restaurants can remain competitive despite rising expenses.

Fast Casual Restaurant Market Trends

The growing consumer preference for health-conscious and organic food options is a transformative trend in the fast casual restaurant market, driven by increased awareness regarding nutrition and wellness. Consumers today are more informed about the impact of dietary choices on their health and the environment, prompting a shift from traditional fast food to fresh, organic, and locally sourced ingredients.

• S. certified organic product sales reached a record USD 70 billion in 2023, according to the Organic Trade Association. This marks a 3.4% increase, reflecting the continued growth and consumer demand in the organic market.

This trend is notably prevalent among younger demographics, particularly Gen Z and Millennials, who place a high emphasis on transparency and quality in their food selections.

• In 2024, according to the Organic Trade Association's report, Millennials and Gen Z value organic, regenerative, vegan, and allergen-free claims 36% more than Gen X and Baby Boomers, reflecting a generational shift in food preferences.

As a result, fast casual restaurants are expanding their menu offerings to include more plant-based meals, gluten-free options, and low-calorie dishes that cater to various dietary needs. This trend is also leading to the rise of niche establishments focused exclusively on health-oriented cuisines, such as smoothie bowls, salads, and grain-based meals.

By capitalizing on this growing demand, restaurants not only attract health-conscious customers but also position themselves as socially responsible businesses, enhancing their brand appeal in the fast casual restaurants market.

Segmentation Analysis

The global market has been segmented on the basis of product, nature, service, and geography.

By Product

Based on product, the market has been divided into burger/sandwich, pizza/pasta, asian/latin american food, chicken, and others. The burger/sandwich segment dominated the fast casual restaurant market, capturing the largest market share of 29.53% in 2023. This large market share can be attributed to several factors.

First, burgers and sandwiches are highly versatile, offering endless customization options, which appeal to consumers seeking personalized dining experiences. Fast casual restaurants have taken these traditional items and elevated them by using premium, locally sourced ingredients and offering healthier variations featuring plant-based and gluten-free ingredients. This resonates with a broad range of consumers, from those seeking indulgence to those prioritizing health.

Moreover, burgers and sandwiches are convenient, portable, and typically sensibly priced, which makes them an attractive option for customers on the go. Many fast casual chains have also invested in menu innovation, incorporating global flavors and unique ingredients into their burger and sandwich offerings, further broadening their appeal.

By Nature

Based on nature, the market has been classified into franchised, and standalone. The franchised segment of the fast casual restaurant market is expected to grow at a remarkable CAGR of 11.81% over the forecast period, driven by multiple factors.

Franchising offers a scalable and cost-effective business model for expansion, allowing fast casual brands to quickly increase their geographic presence without bearing the full financial burden of opening new locations. Franchisee, in turn, benefits from the brand recognition, established operational processes, and marketing support provided by the parent company.

This symbiotic relationship enables faster market penetration, especially in emerging markets and urban areas where consumer demand for convenient, high-quality dining options is on the rise. Moreover, franchising allows brands to tap into local expertise, which can help them better tailor their offerings to regional preferences. The rise of delivery and take-out services also favors this segment’s growth, as these operations can be easily replicated across multiple locations.

By Service

Based on service, the market has been divided into dine-in, and takeaway. The dine-in segment led the fast casual restaurant market in 2023, reaching a valuation of USD 101.30 billion, propelled by the growing consumer preference for experiential dining as customers seek out immersive and high-quality dining experiences that go beyond mere convenience.

Fast casual restaurants have responded to this demand by operating in inviting, modern, and comfortable settings, where diners can enjoy freshly prepared meals, creating a more relaxed and enjoyable dining experience compared to traditional fast-food outlets. Additionally, the post-pandemic recovery saw a resurgence in dine-in traffic as consumers returned to restaurants in larger numbers, with many seeking a sense of normalcy and the social interactions associated with dining out.

Menu innovation, i.e., the inclusion of healthier, locally sourced, and customizable options, has also contributed to the segment’s success, attracting a wide range of consumers. The focus on sustainability, transparency in ingredient sourcing, and improved service quality has further enhanced the appeal of dine-in establishments.

Fast Casual Restaurant Market Regional Analysis

Based on region, the global market has been segmented into North America, Europe, Asia-Pacific, MEA, and Latin America.

North America fast casual restaurant market accounted for 33.32% of the global market share and was valued at USD 63.48 billion in 2023, driven by several significant factors. The region's strong preference for convenient yet high-quality dining options has fueled the growth of the market, which offers a balance between service efficiency and a premium food experience.

Consumers in the U.S. and Canada are increasingly seeking healthier and fresher alternatives to traditional fast food, prompting fast casual chains to innovate with organic, locally sourced, and plant-based ingredients. Furthermore, the widespread adoption of technology, including mobile ordering, delivery platforms, and digital loyalty programs, has enhanced the customer experience, making dining more accessible and personalized.

The region is also supported by a mature and well-developed restaurant industry, with many key players expanding their footprint through franchising.

• For instance, in July 2024, Experiential Brands launched SocialBites Food Hub in Atlanta, an innovative food hall concept featuring four unique restaurant brands under one roof. The venture combines elevated dining, interactive decor, and community-focused entertainment, within a vibrant social space.

As a result, fast casual chains have continued to scale across urban and suburban areas, capturing a large share of the dining market. The strong demand for customized, healthier food options, coupled with robust digital integration, has solidified North America's position as the leading region in the global market.

Asia-Pacific region is expected to grow at the highest CAGR of 11.84% in the coming years, due to several factors that are reshaping the fast casual restaurant market. The region’s rapid urbanization, growing middle-class population, and rising disposable incomes have increased the demand for convenient yet high-quality dining options, making fast casual dining a preferred choice for many consumers.

China, India, Japan, and Southeast Asian countries are witnessing a shift in consumer preferences toward healthier, more diverse food options, encouraging the expansion of fast casual chains offering customizable meals and international flavors. Additionally, the proliferation of food delivery platforms and the adoption of digitization have made it easier for restaurants to reach customers in both urban and suburban areas, further accelerating market growth.

Many global and local fast casual brands are actively expanding their presence in Asia-Pacific, capitalizing on the growing demand for fresh, healthy, and convenient meals. With the region’s young, tech-savvy population driving digital ordering and food delivery, Asia-Pacific is poised to become a key hub for the market.

Competitive Landscape

The global fast casual restaurant market report provides valuable insights, highlighting the fragmented nature of the industry. Prominent players are focusing on several key business strategies, such as partnerships, mergers and acquisitions, product innovations, and joint ventures, to expand their portfolio and increase their market shares across different regions.

Companies are implementing impactful strategic initiatives, such as expansion of services, investments in research and development (R&D), establishment of new service delivery centers, and optimization of their service delivery processes, which are likely to create new opportunities for market growth.

List of Key Companies in Fast Casual Restaurant Market

• Panera Bread
• Chipotle Mexican Grill
• Qdoba Restaurant Corporation
• BurgerFi International, Inc.
• Smashburger, Inc.
• The Halal Guys
• Shake Shack
• Five Guys Enterprises, LLC
• Noodles & Company
• MOD SUPER FAST PIZZA, LLC

Key Industry Developments

• June 2024 (Partnership): Thanx, a leading guest engagement platform, partnered with Bite, a pioneer in intelligent kiosk solutions for fast-casual and quick-service restaurants. This collaboration aims to streamline the ordering process by integrating loyalty programs into the kiosk experience, enhancing customer retention and convenience.
• April 2023 (Launch): Chipotle Mexican Grill unveiled its electric-powered restaurant design as part of its commitment to reducing greenhouse gas emissions. Aligning with the Science Based Targets initiative (SBTi), Chipotle aims for a 50% reduction in carbon emissions by 2030, to align with broader sustainability objectives.

The global fast casual restaurant market has been segmented:

By Product

• Burger/Sandwich
• Pizza/Pasta
• Asian/Latin American Food
• Chicken
• Others

By Nature

• Franchised
• Standalone

By Service

• Dine-In
• Takeaway

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America