According to a recent report by Allied Market Research, The global fast casual restaurant market was valued at $124.5 billion in 2022, and is projected to reach $337.8 billion by 2032, registering a CAGR of 10.4 percent from 2023 to 2032. The report has analysed the previous two years, which has served as an indication for what the future decade should expect.
The rapid growth of fast-casual restaurants is majorly driven due to low barriers to entry from competitors and the potential for high profits, which has led to a proliferation of such restaurant chains in both developed and developing economies across the globe. Moreover, the food service industry has experienced a significant shift toward adopting technology to improve operational efficiency. Thus, through the implementation of scheduling software, digital inventory tracking, automated purchasing tools, and digital reservation table managers, the industry has seen significant improvements in revenue generation, inventory management, customer satisfaction, and overall operation efficiency.
By food type, the burger/sandwich segment held the highest market share in 2022, accounting for more than one-fourth of the global fast-casual restaurant market revenue and is estimated to maintain its leadership status throughout the forecast period. The high market share of the burger/sandwiches segment is attributed to convenience and ease of availability in the restaurants. Most of the fast-food restaurants serve burgers and sandwiches to their consumers. The preparation time of these products is less, which makes these foods quite popular among consumers.
The dine-in segment held the highest market share for the mode of operation in 2022, accounting for more than three-fifths of the global fast-casual restaurant market and is estimated to maintain its leadership status throughout the forecast period. Millennials are rapidly transforming the way they dine in. A paradigm shift toward values of societal and environmental good, along with pursuing for new kind of restaurant experience that majorly focuses on local food, healthy options, sustainability, and moderate prices. As a result, fast casual restaurants have seen exponential growth in terms of revenue and footfall. Furthermore, millennials seek unique dining experiences while giving preference to exquisite flavours, locally sourced and natural ingredients, and raw materials.
By nature, the franchised segment held the highest market share in 2022, accounting for more than four-fifths of the global fast-casual restaurant market and is estimated to maintain its leadership status throughout the forecast period. The leading brands in fast-casual restaurants are those that expanded their geographical presence and footprints by franchising. Franchised fast-casual restaurants account for a higher value share, as the segment has a comparatively larger customer base, which is loyal to its brand and product offerings. Such restaurants have a unique trademark that is used for promotional activities as well as for selling their products.
North America held the highest market share in terms of revenue in 2022 and is likely to dominate the market during the forecast period. North American consumers have seen a rapid transition toward healthy preferences in terms of food choices. Consumer tastes, habits, and purchasing behaviour are rapidly evolving in the region. Numerous factors, such as high labour costs, high-interest rates, and sustained economic growth, create a complex operational environment for the players in the fast-casual restaurant market. As a result, established players face intense competition from well-funded and assertive disruptors in the industry. The key players continue to benefit from the trend of increased reliance on food from fast-casual restaurants by Americans owing to hectic schedules and fast-paced lifestyles.
