Fast casual restaurants are popping up faster than you can say "build your own grain bowl." They're somewhere between a full-service casual dining restaurant and a quick-service restaurant or fast food chain. It's a sweet spot that has drawn the attention of investors and consumers alike, demonstrated by the runaway success of Cava's IPO and expansion to new locations. People want to build their own bowls (and burritos, sandwiches, and salads) and they want it now.
While fast casual restaurants vary by cuisine and aesthetic, they share a number of similarities including menu pricing, counter service rather than full table service, and a "build your own" menu model that welcomes modifications.
Looking for tips on starting your fast casual restaurant?
The history of fast casual dining
The fast casual concept was born in the 1990s but gained popularity in the mid-2000s with the massive success of Chipotle Mexican Grill. Fast casual restaurants offer customers a dining option between fast food and full-service restaurants. Practically, this means higher quality food with the same speed and efficiency as fast food chains. But it also provided customers with the luxury of going out to eat (and not having to do the dishes) without having to pay the higher price point during times when people had to cut back on discretionary spending.
Fast casual restaurants, along with fast food chains, have been at the forefront of food trends like chicken sandwiches and secret menu items. Like many successful restaurant brands, fast casual restaurants offer online ordering, delivery, and custom-branded apps, using these tools to grow and connect with their customer base.
What are the qualities of a fast casual restaurant?
If you're trying to spot a fast casual restaurant in the wild, or hoping to start one yourself, you could consider Chipotle as your north star. But don't get locked into burritos, bowls, and fountain drinks. Here's what most fast casual restaurants have in common.
Menu pricing
Fast casual restaurants offer menu prices in between traditional fast food outlets, which are cheaper and have more value deals, and full-service restaurants, where the cost of service is built into menu pricing. Fast casual guests typically spend $27 per visit on average.
Fast casual restaurants tend to operate a "build your own" model with both included and premium add-ons. This allows fast casual chains to charge extra for high-value items like steak, fish, and avocado. Side items like drinks, chips, and bread, may or may not be included depending on how the fast casual chain defines a meal on the menu.
Counter service
Fast casuals offer either limited service or self-service. They substitute service for convenience and relative affordability. Fast casual guests either order at the counter and pick up their order when their name or number is called, or order at the order station and pay as the last step in the ordering process.
For fast casual guests who prefer on-premise dining, they'll find limited seating options and a pared-back dining room. Fast casual dining areas are made up of mostly two- and four-tops, though some opt for communal tables. If physical location allows, patio spaces and outdoor seating are great options for fast casual restaurants, since they're already operating a minimal service model.
"Build your own" menu model
Rather than offering an extensive menu with lots of distinct items and combinations, many fast casual restaurants operate a "build your own" model. Customers are invited to substitute items to make the meal their own, or create their meal from scratch (this will typically mean higher prices).
Online ordering and to-go operation
Online ordering is an increasingly popular option for customers. But for restaurants, it's not as simple as flicking the on switch. While fast casual restaurants weren't originally take-out and delivery operations, many have adapted to stay competitive in the market.
Depending on the size of the operation, fast casual restaurants might have dedicated staff members fulfilling online orders during peak hours. Off-site orders are often placed on third-party ordering sites, which can cut into a fast casual restaurant's profit margins.
Loyalty programs
Like any other restaurant, repeat business is key. Fast casual restaurants are already selling customers convenience, but in a sea of fast casual options restaurants are turning to loyalty programs to help them stand out. Some fast casual restaurant chains invest heavily in custom apps, email marketing, and points-based reward programs. Sweetgreen, for example, launched sweetpass+, a membership program that gives members regular discounts and other benefits.
The lunch rush is many fast casual restaurants' bread and butter. Loyalty programs can drive business during other dayparts by offering discounts during mid-afternoon lulls and dinner hours.
How do fast casual restaurants compare to fast food restaurants?
Fast food restaurants take up a large part of the restaurant culture landscape in the United States. Happy meals, drive-thru, burgers, and fries are all familiar symbols to signify fast food. Historically, fast food is a cheaper and less healthy lunch option compared to fast casual restaurants. However, in recent years fast food prices have increased by 47% since 2014 narrowing the gap between fast food prices and fast casual prices.
Fast casual restaurants emphasize higher quality ingredients, compared to fast food restaurants which sacrifice these high-quality ingredients for affordability and speed. Fast casual restaurants serve fewer frozen items, opting for fresh ingredients instead.
How can I start a fast casual restaurant?
Whether you want to sling salads or craft unique burgers, opening a fast casual restaurant requires a focus on efficiency, convenience, and quality. Always take the time to get to know your target customers and the dining experience they're looking for. Here are some steps for starting your own fast casual restaurant.
Craft an attractive menu concept
Start with a small menu and build from there. No matter what type of food you want to serve, focus on dishes that can be easily modified to match the customer's taste. Sandwiches, burritos, grain bowls, and salads are good places to start. Get creative with modifiers by showcasing house-made sauces, add-ons, and baked goods.
To make your fast casual restaurant stand out, lean into unique flavor combinations, outstanding quality, and fresh, local ingredients. As with any restaurant, consistency is key. Train your staff to deliver high-quality food every time.
Get the tech infrastructure you need
When it comes to boosting efficiency and speed of service, tech has a proven track record. For most fast casual restaurant chains, an easy-to-use restaurant POS system with a streamlined modifier flow is a non-negotiable. An intuitive and reliable fast casual POS system can help you onboard new staff quicker, deal with a high-volume lunch rush, and access accurate reporting that will help you make your menu more profitable.
Alongside the POS system, a kitchen display system can increase order accuracy and make your kitchen more efficient, particularly if you have multiple stations. While it's not for every concept, self-ordering kiosks can be key for minimizing order times and increasing order averages while maintaining labor costs.
Know your competition
Every restaurant vertical is competitive. But the simplicity of the fast casual restaurant model means it can be difficult to differentiate your concept and compete with big, well-known brands like Au Bon Pain Five Guys, and Blaze Pizza.
First off, take stock of which fast casual restaurants, fast food restaurants, and casual dining spots are near your physical location. You're not just competing with the best fast casual restaurants, ideally, you're picking off guests who would otherwise dine at a sit-down restaurant or fast food joint but they like what you have to offer. Pay attention to the food, the service model, the customers, and the dining room. Research whether they're using processed ingredients or fresh ones. How do they price their meals? If you're surrounded by burgers and salads, find the middle ground and showcase your sandwiches. The more you know, the more you can focus on what makes your concept unique and create something different in the market.
Find your audience
It's the other side of the coin to knowing your competition: get obsessed with your customers. What do they care about? What's their preferred price point? How do they like to order—self-service on-premise, online, or with a member of your team? If you're starting from scratch, talk to potential customers in person and online to get a sense of their preferences. If you're a restaurant operator looking to expand into the fast casual space, drill into your reporting to look for meals and items that are popular and will translate well to fast casual.
Start small, plan for growth
You're not going to become the next Taco Bell or Panera overnight. Even the grandest ambitions must start with one location. Set benchmarks for success, whether it's repeat customers, monthly sales, or loyalty program members, and track them using POS reporting. In the fast casual space, trends ebb and flow in popularity. Mediterranean food will have a moment, smoothie bowls will go out of vogue, and before you know it burgers are back. So instead of chasing what's popular, stick to providing quality and convenience—two things that will never go out of style.
High-quality ingredients meet speed, efficiency
Washing white tablecloths, hiring hosts, bartenders, and bussers, and buying pricey wine glasses and tableware make fine dining an expensive enterprise. Even casual dining comes with plenty of associated costs. The relative affordability and quality make fast casual restaurants popular despite a slowdown in the restaurant industry at large. Plus, there's no more losing sleep over table management and reservations when your fast casual restaurant only takes walk-ins and customers seat themselves.
