SiteSeer is a powerful analytics platform used by brokers, shopping center developers, retailers, franchise companies, and multi-site chain businesses in many different industries. We’re highlighting how different types of businesses can leverage SiteSeer to make intelligent site selection decisions and gain valuable insights about their operations.
Read our Industry Spotlight on Hotels.
Fast Casual Restaurants: Growing in a Changing Landscape
The restaurant industry has experienced a slow battle back to normal over the four years since the COVID pandemic.
Within it, the fast casual segment has seen a dynamic shift. Consumer preferences are constantly evolving, and the category seems to be outpacing quick-service restaurants, according to the International Foodservice Manufacturers Association.
In its 2024 and 2025 Food Away-From-Home Industry and Segment Projections, IFMA projected that the industry as a whole would grow 0.9% in 2024. It also projects that quick service restaurants are projected to grow 0.7% and fast casual restaurants are projected to grow 1.3%--an increase from IFMA’s February 2024 projection of 0.9%. Midscale restaurants are projected to decline 0.7%, and IFMA revised its casual dining projection to be flat (compared to its 0.5% projection in February).
Fast casual restaurants appeal to consumers seeking higher-quality, convenient food at affordable prices. According to the National Restaurant Association's 2024 State of the Restaurant Industry Report, fast casual restaurants continue to be one of the industry's strongest-performing segments due to consumers’ preference for:
- Speed without sacrificing quality – Busy consumers like fast casual because they can get healthy food made to order with fresh ingredients—yet they can enjoy their meal faster than at a sit-down dining experience. Fast casual restaurants have risen to the demand by consumers for versatile menu options (think gluten and dairy free).
- Convenient ordering - Fast casual operators have confronted inflation, rising wages, and ingredient costs by implementing labor-saving technology such as self-order kiosks and menu apps. Consumers on the go like the ability to customize their orders, order ahead (for pickup), and save themselves time.
- Inviting ambiance – Creating a welcoming atmosphere is critical for fast casual chains. Many leading fast casual chains have strong brand identities, which increases customer loyalty and builds trust.
New Fast Casual Restaurant Projects in 2024
Despite economic challenges, the fast casual sector is experiencing growth overall, which could be due to its appeal to younger and wealthier consumers, as stated by a Citi restaurant analyst. Some brands like Chipotle, Shake Shack, and Slim Chickens are expanding aggressively. Chipotle said it planned to open between 255 and 315 new locations in 2024; Shake Shack is aiming for 80 more locations; and Slim Chickens is planning on more than 70 additions.
Fastcasual.com reports that the market is expected to grow to $186.27 billion (from 2021 to 2026) at a CAGR of 12.41%, according to a report from Technavio’s. The report shared that North America would account for 44% of that growth.
Market Analytics + Data = Superior Restaurant Site Selection
Like other industries, fast casual restaurants must analyze the markets they are considering for expansion using accurate data and powerful tools. Understanding consumer’s preferences is key to differentiating a fast casual restaurant from its competition and upholding brand loyalty.
Here are essential site selection considerations for fast casual chains planning for expansion:
- Demographics and Consumer Preferences: Demographic and lifestyle data can provide critical insights into the consumers who gravitate toward fast casual restaurants: those who prioritize health and food quality, yet still want convenience and reasonable prices. Spending data and foot traffic data can offer information about these consumers’ lives and travel patterns as chains determine the best markets for expansion.
- Traffic and Accessibility: All restaurants want to locate in high-traffic areas with excellent visibility, but fast casual restaurants may have multiple types of trade areas. Chains like Chipotle locate in both urban and suburban areas with high daytime populations—which could be a downtown location near multiple office buildings or a suburban shopping center with a big box co-tenant. Whether located in busy retail corridors or in an area with office workers and nearby residents, ensuring easy access is key. Depending on the fast casual concept, suburban locations might need plenty of parking and be conducive to curbside and in-store pickup (whether the customer or a delivery driver). Urban site criteria might include room for patio seating and plenty of nearby consumers within walking distance.
- Competition and Market Saturation: As in any industry, the fast casual space faces both direct competition and indirect competition. Clusters of varied dining options can create a destination for customers, but it’s vital that chains assess market saturation to avoid over-competition and consider the strength of their competitors.
Leveraging SiteSeer for Fast Casual Restaurant Expansion
In a competitive industry like fast casual dining, it’s important to have excellent tools and accurate data. SiteSeer can help fast casual brands make data-driven decisions about where to open new locations. Users have access to a wide range of data sources—from demographic to psychographic data, from traffic data to planned construction data.
SiteSeer can also help you:
- Understand your customers and their changing tastes and needs
- Gain competitive insights
- Forecast the potential sales performance of a future site
- Determine regions with the highest potential for growth using the new White Space tool
Drive Smart Expansion with SiteSeer
Want to learn more about SiteSeer and our tools for fast casual brands? Contact us for a demo today.
