The fast-casual sector, the rapidly growing and dynamic segment between fast food and full-service dining, is expected to continue its upward trajectory in 2024. For the past decade, fast casual has been among the restaurant industry’s fastest growing and most competitive chains, outperforming fast food and full-service establishments. According to fastcasual.com, the fast-casual restaurant market will grow from $186.27 billion (about $570 per person in the US) from 2021 to 2026 at a CAGR of 12.41%, according to a report from Technavio’s, which revealed that North America would account for 44% of that growth and will be faster than in South America and MEA. The industry is bolstered by critical traits that resonate with modern diners, like using fresher ingredients, appealing and accessible storefronts, and quick yet elevated and personalized service. As economic challenges and changing consumer preferences impact the restaurant space, fast casual is positioned to remain resilient and adapt thanks to its flexibility in offerings, service model, use of technology, and approach to customer experience. This series examines the key trends expected to shape the fast-casual restaurant industry as it continues its upward growth trajectory in 2024.
Health and Wellness Focus in the Fast-Casual Restaurant Industry
There is a growing consumer trend towards health-conscious eating that fast-casual restaurants need to consider. Brands like The Great Greek Mediterranean Grill that offer nutrient-dense menu items aligned with various dietary preferences are gaining popularity. Beyond just providing salad and grain bowls, fast casual brands must cater to consumer demand for wholesome, nutritious ingredients and transparency around food sourcing and production.
This ties into consumers becoming more informed about their dietary choices – they want to know what is in their food, where it came from if it is organic, non-GMO, etc. Fast casual restaurants can tap into this through menu innovation that caters to Mediterranean, vegan, vegetarian, gluten-free, paleo, and keto diets. Not only offering plant-based protein and vegetable-centric dishes and labels menu items for different diets and nutritional needs.
Loyalty programs and in-app features may evolve to track calories, macronutrients, and lifestyle preferences to further assist consumers in meeting personalized health goals. Overall, the success of fast-casual restaurants in 2024 will rely heavily on responding to consumer demand for nutritious, diet-specific menu options that align with a growing focus on health and well-being through food choices.
Fast-Casual Industry Franchising Dynamics
The franchising aspect of the fast-casual industry is anticipated to grow at a moderate pace. Expansion plans are expected to increase momentum in the latter half of 2024 as the economy stabilizes and consumer confidence rises.
A cautiously optimistic economic outlook suggests a return to pre-pandemic levels of growth for many chains, with a continued focus on sustained expansion. Significant players in the fast-casual restaurant scene have announced ambitious growth targets, planning to open hundreds of new locations over the next few years.
This renewed confidence stems from positive economic indicators and an expected uptick in discretionary spending. However, some chains may take a more conservative approach, basing expansion plans on more gradual organic growth models rather than aggressive franchising deals. Geographic location will also play a role, with brands selectively targeting regions with favorable small business climates.
Overall, the franchising dynamics of fast-casual indicate steady, controlled growth, balancing ambitious expansion plans with sustainable models tailored to each brand and market. The outlook suggests the segment is on track to recover from the pandemic dip and continue its popularity and market share rise.
Adapting to Challenges
The fast-casual industry is addressing rising food costs, broken supply chains, and shortages. Brands anticipate passing more expenses onto consumers but want to maintain quality standards when possible.
Operations leaders realize 2024’s challenges require flexibility and resilience.
Their priorities involve:
- Controlling food costs through supplier negotiations and menu planning
- Absorbing some extra expenses to avoid losing customers
- Streamlining operations to operate efficiently despite shortages
- Diversifying supply chains geographically to mitigate disruption risks
- Updating contingency plans to keep restaurants running smoothly
Companies like The Great Greek Mediterranean Grill that actively strengthen operational resilience will remain competitive. They accept the new normal of market instability and prepare their business to navigate uncertainty.
Technological Innovations in the Restaurant Industry
The fast-casual restaurant industry is expected to see significant technological innovations in 2024, focusing on enhancing the customer experience through greater efficiency and customization.
Artificial intelligence (AI) and application programming interfaces (APIs) will play a significant role. Brands will aim to provide an “Amazon and Apple-like guest experience” by fully integrating these technologies into their operations. This could include using AI to display personalized order recommendations on screens as customers approach the counter.
APIs also help connect various systems to create a more seamless dining experience. For example, customer loyalty program data could integrate with kitchen display systems to automatically surface a regular customer’s favorite order.
Overall, the industry seems poised to offer greater customization and personalization through better use of technology. The goal will be to maximize customer satisfaction by providing more tailored, efficient service. Brands that fail to leverage these innovations effectively may start to lag the competition.
Investing in the right technologies – while keeping the customer experience at the forefront – will separate the innovators from the laggards in the fast-casual restaurant sphere. The coming year offers an opportunity for brands to stand out through the intelligent adoption of emerging tech.
Evolving Franchise Marketing Strategies
Influencer marketing is expected to surge in 2024, with more investment directed towards influencers and content creators on social media platforms. Following successful models, this strategy will surpass other marketing segments regarding budget allocation and focus.
The aim will be to find a niche in influencer marketing to increase overall marketing spend and expand brand reach. For example, The Great Greek Mediterranean Grill partners with healthy eating and lifestyle influencers on Instagram who align with their focus on fresh, nutritious menu options. Or target food bloggers on TikTok to highlight our stuffed grape leaves, hummus, falafel, and other authentic dishes.
Beyond influencers, we will also see more interactive social media campaigns centered around hashtags, geotagging, contests, and promotions to drive customer engagement. Facebook and Instagram advertising focused on limited time offers, or new menu items will also enable targeted, cost-efficient upgrades.
Fast casual brands recognize the power of evolving digital marketing and will allocate more resources toward social media and influencer campaigns to connect with consumers in 2024. The personalized, visual nature of platforms like Instagram and TikTok provides vast, untapped potential for growth.
Fast-Casual Menu Innovation and Customization
Fast casual brands will continue to innovate and customize their menus, responding to customer demand for new and bold flavors.
Customers today expect more options and unique flavors that reflect global tastes. In 2024, fast-casual restaurants will focus on building out their menus with more diverse offerings:
- Ethnic flavors like Mediterranean cuisine, Korean barbeque, Indian curries, and Mexican moles will become more prominent. Brands like CAVA and Tocaya Organica already offer globally inspired proteins and sauces.
- Plant-based options using ingredients like jackfruit, hearts of palm, and cassava will provide more choices. Plant Power Fast Food and Next Level Burger are industry leaders in plant-based fast casual.
- Dietary restriction menu choices will expand, with more gluten-free, dairy-free, low-carb, and vegan items available. Customization for special diets helps brands access niche markets.
- Seasonal and limited time offers featuring locally sourced produce and proteins will drive return visits, especially for frequent customers looking for variety.
Menu innovation is vital for fast casual growth and resilience. Unique flavors, dietary customization, and seasonal offerings allow brands to differentiate themselves in a crowded market. 2024 will see continued expansion of menu options to satisfy demanding and discerning customers.
Customer Experience in the Fast-Casual Restaurant Scene
Customer experience will be a significant area of focus and innovation for fast casual restaurants in 2024. With rising competition, brands will aim to provide greater convenience, personalization, and loyalty incentives to attract and retain guests.
Loyalty Programs
Loyalty and rewards programs are expected to expand in creative new ways to increase customer visits and spending. Mobile apps could integrate specialized promotions and personalized offers based on order history and preferences. Gamification through point systems and status tiers may help drive engagement. Brands could also align programs with the health trend, rewarding healthy menu choices. The goal is to make loyalty enrollment irresistible.
Convenience & Customization While Dining
More brands will prioritize convenient ordering through mobile apps and kiosks, accelerating service and allowing customization. Features may include bright screens with personalized recommendations and one-click reordering. Kitchens are optimizing operations to handle a surge in mobile/kiosk orders. The overall experience is shifting towards the tech-driven model of retail giants like Amazon.
Sustainability in Franchising
The fast-casual restaurant industry is expected to place increasing importance on sustainability in 2024. Consumer demand for eco-friendly practices continues to rise. As such, brands will implement more initiatives to reduce their environmental impact.
Key areas of focus include:
- Use of eco-friendly packaging and cutlery
- Energy-efficient equipment and LED lighting
- Water reduction tactics
- Responsible for sourcing ingredients
- Waste and recycling programs
- Carbon footprint tracking
These sustainability best practices can help brands appeal to eco-conscious diners. They also reduce operating costs over the long term. With climate change and resource scarcity intensifying, the industry recognizes sustainability as a social responsibility and an intelligent business strategy.
The fast-casual segment is poised to drive positive environmental changes across the broader restaurant industry. Their innovation and flexibility enable the rapid adoption of greener operational standards. Customers will reward those brands that transparently commit to tangible sustainability goals.
Looking ahead to 2024- Let’s Talk Franchising
Fast casual restaurants look primed for continued growth and innovation in 2024. Key trends to watch include an increasing focus on health and wellness offerings, more franchising, adaptations to economic challenges, innovative technology integrations, creative marketing strategies leveraging influencers, and ongoing menu customizations.
Restaurants will cater to consumers’ demands for nutritious yet crave-worthy menu items. Technologies like self-ordering kiosks and AI recommendations will enhance service and efficiency. Despite cost and supply chain issues, brands aim to balance quality and affordability while expanding through franchising. Social media influencers will see bigger marketing budgets to highlight brands to niche audiences.
With resilient, insight-driven strategies, fast-casual chains hope to increase market share by sticking to their core competency – customizable, chef-driven cuisine at reasonable prices. Although uncertainties exist, the outlook seems optimistic if brands can respond to emerging challenges while anticipating consumer needs. The overarching focus remains on delivering a superb guest experience through quality, innovation, and adopting strategic food and tech trends.
As we navigate the exciting landscape of fast-casual dining in 2024, The Great Greek Mediterranean Grill stands at the forefront of this culinary revolution, embracing health-focused menus, technological advancements, and expansive franchise opportunities. If you are passionate about bringing a taste of the Mediterranean to your community and being part of a thriving, future-forward industry, we invite you to explore franchise opportunities with us. Connect with The Great Greek Mediterranean Grill team today to learn how you can become a part of our growing family, and together, let us make 2024 a year of delicious, innovative, and community-focused dining experiences. Contact us now to start your journey into the dynamic world of fast-casual restaurant franchising!
