Posted on 03/08/2015 11:14:38 AM PDT by SamAdams76
BRIDGING a gap in the market between fast-food joints and full-service restaurants, fast-casual chains such as Shake Shack, Nando’s chicken restaurants and Chipotle Mexican Grill are enjoying success across the world. The combined sales of American fast-casual outlets rose by 10.5% last year, compared with 6.1% for fast-food chains, according to Mintel, a market-research firm.
There are four main reasons why these outlets have been winning customers. First, they promise “fresh” food, meaning at the very least not frozen. Chipotle also says it uses, where possible, meat from animals raised without hormones or antibiotics, and organic and locally grown vegetables. Having once been controlled by McDonald’s, Chipotle is now a threat to its former parent. Although still relatively small, it is enjoying 20% annual growth, quite a feat in the crowded restaurant market.
Second, they offer diners a high level of customisation, such as choosing each ingredient in a sandwich, burrito or burger. This appeals to fussy eaters and those with allergies. The service is not always as quick as at a burger joint but, it seems, quick enough. Some fast-casual chains let diners order at their tables.
Third, clever pricing helps these chains optimise their profits. They offer some dishes at around the same price as those at burger joints, but they seem to be better than McDonald’s at nudging diners towards pricier dishes and extras. Fast-casual chains typically manage to squeeze 40% more out of each diner’s wallet than fast-food joints do.
Fourth, fast-casual chains often try to give each outlet a touch of distinctiveness. This distances them in the eyes of consumers from the “corporate” feel of burger chains—and their legacy of bad publicity—says Sophie Carroll of Planet Retail, another research outfit. Nando’s, for instance, decorates its restaurants with South African art.
For all their success so far, some of the fast-casual chains are finding that as they get bigger, they come under more scrutiny. Campaigners have recently criticised Chipotle and Panera Bread for using ingredients from genetically-modified crops and artificial additives—they say they are working to eliminate these. Campaigners against the use by companies of (legal) tax-avoidance techniques have added Nando’s to their targets. Fast-casual restaurants are joining the ranks of big business and having to endure the attention that comes with it.
They do listen to consumers, and seem to want to know if there are any concerns about both their restaurants and the ones they franchise.
Are people in cities really as into eating out casually/fast as this article implies? It wasn’t that way when I lived in the burbs 10 years ago...
The only chain restaurant within 20 miles here is a DQ-but a 25 mile drive down the FM and the highway to the nearest real town-6000 people-has a (gag!) McDonalds and a Jack in the Box-and a Chili’s next to Home Depot. I don’t eat processed stuff, and so I have eaten at none of the above.
The butcher shop and small market 16 miles away has local grass fed, free range meats and fresh-today veggies and fruit from Texas and northern Mexico to cook and serve at home-you save money and eat what you want. I don’t trust a chain restaurant’s idea of “fresh” or “organic”...
But if you want to go out to eat, there are locally owned restaurants as close as 7 miles-they are sit down, with good, fresh menu items and personalized service. They cost a good deal less than Chili’s, etc even with a tip-and the food is fresh.
Panda Express... REALLY!?!?!? That qualifies as food?
Who said anything about organic or better for you? Not me, you keep obsessing on that, I’m simply pointing out that the product does indeed clearly taste better than the normal fast food competition.
If somebody here is deceived it’s you. You’ve deceived yourself about why people eat at these places. Most of them say absolutely NOTHING about organic. The big claim to fame most of them have is a lack of freezers and a shorter supply chain with more local control to the franchise holders. This results in fresher ingredients, selected to please local clients.
If you’re going to be saddened at anything be saddened by you. Because you’re the only one making those arguments you think are so dumb. Nobody else here has mentioned organic, or cancer, or any of that other stuff. It’s all strawmen from you, so if you think those arguments are sad, stop making them. Meanwhile, we’re going to our fast casual places and enjoying them.
'People' with 'money', often drive the demand and taste of certain things. From there it spreads.
I only got McD's for coffee. Places like that are dinosaurs in terms of service and quality. They are trying to change their methods with their new 'chicken' and other products.
Not that I'll turn my nose up at grain-fed beef if I'm at a backyard barbecue or at a restaurant that has no other option, but given a choice, I'll go with the grass-fed. It's much tastier and better for you.
Within about 100 yards from where I live there is this Chicken place. I’ve lived here for nearly 7 years and not until recently have I been there. It’s a free standing location and from all appearances, it’s a dump.
The only thing was, it is ALWAYS PACKED and the smell of rotisserie “A la brasa” Chicken filled the air.
I recently broke down and thought I’d give it a try.
The Best Chicken I’ve ever had.
I don’t think there has ever been a time that I didn’t have to wait five deep in line just to order.
For $10 I get a half chicken with rice and a small salad and can easily make two meals out of it, if it weren’t soo good.
I agree with you but the French fries, which really are made fresh, are the best.
I miss central MA with all the excellent restaurants with some flair. <^..^>
Another good one is Bobby Flay’s Bobby’s Burger Palace. Very clean, fast service, good burgers and shakes. Skip the fries, get the onion rings!
Oh well, on to the next trainwreck.
Panera is okay, but the menu signs aren’t visible from the point of sale so if you don’t know exactly what you want, you’re doing a lot of back and forth “side-stepping” to the consternation of folks behind you.
It's not bad in a pinch. But I was in Schaumburg a few years ago and planned to go to Yu's Mandarin which is just awesome. But it was Saturday and the wait was about 90 minutes so we went to - Panda Express - instead.
I took quite the ribbing later on. "Oh yeah, that's just as good as Yu's!" (said sarcastically).
Thanks for the response I would go look again as it has been years since I went there.
A few years ago, one market labeled the bruised produce “organic” and raised the price-they got busted...
People out here who drive the extra miles and pay the extra money for “organic” produce are the Birkenstock bunch. If I grow the veggie, or my neighbor does, then I know how organic it is-but that doesn’t happen in the winter, so I buy it in the store-most likely grown in Mexico or in a greenhouse-it is still a fresh veggie-just not as tasty as mine...
I think a lot of people miss the point of eating fresh food-fresh and not processed is healthier because nothing is added to preserve it, and free range animals are leaner and healthier-it is more about that than what goes on an avocado or asparagus when it is growing. And carbs from grains are still carbs-they make you overweight, and have little real nutrition. Carbs from fresh veggies-carrots, squash, etc have real nutritional value.
Unequivocally yes.
I'm old enough to remember when dining out was a comparatively rare occasion and then only on rare occasions. Unless you were out on a date, celebrating an anniversary or other event, you pretty much ate and entertained at home.
At least here in the Northeast, on a typical Friday or Saturday night, the lines are out the door and waits for tables can be up to two hours long. On Friday night, my wife and I waited 90 minutes for a table at Texas Roadhouse. I probably had about a pound of peanuts while waiting! Even during the week, the restaurant business is brisk.
For better or worse, it has now become a rarity to cook at home for city and suburban people and even then, it's usually throwing frozen pizzas or pot pies in the oven, heating up soups or throwing together a quick pasta dish.
My grown sons, Gen-Xers, pretty much live at places like Chipotles, Starbucks, and the various chicken and pizza places that surround their apartments. They fire up the mobile Yelp app to find a place and then they text their friends and show up together.
During the recent snowstorms, their major complaint was that they were stuck at home with "nothing to eat."
Such is the culture of young people today.
Every shopping mall in America has one of two of those fast-food Oriental places in the food court. I shy away from them, along with anything else that resides in a "food court."
Most shopping malls now have stand-alone restaurants like Buffalo Wild Wings, Red Robin or a Yard House. Those are much better places to hang out (and have a beer or two) while the wife is shopping.
Burger Fi,small chain great food and priced right.
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