U.S. Fast Casual Restaurant Market By Food Type (Burger/Sandwich, Pizza/Pasta, Asian/Latin American Food, Chicken, Others) , By Mode of Operation (Dine-in, Takeaway) By Nature (Franchised, Standalone) : Opportunity Analysis and Industry Forecast, 2023-2032
U.S. Fast Casual Restaurant Market
The U.S. fast casual restaurant market was valued at $50.6 billion in 2022 and is projected to reach $121.3 billion by 2032, growing at a CAGR of 9% from 2023 to 2032.
A fast casual restaurant combines the convenience of quick-service food with the quality and experience of casual dining. The key highlights of fast casual restaurants include instant service, use of fresh ingredients, and customizable menu options. In addition, these restaurants gain advantages over other dining establishments owing to their broad demographic appeal and market adaptability.
Increase in demand for quick, good-quality meals among individuals that aligns with their busy lifestyles has been a key driver of the U.S. fast casual restaurant market. In addition, the availability of multiple options and customizations on the basis of dietary requirements of individuals has enhanced their preference for fast casual restaurants, which has augmented the development of the market. Shift toward sustainability is becoming a prominent trend among fast causal restaurants in the U.S. as several restaurants are making local ingredient sourcing, waste reduction, and use of eco-friendly utensils & cutlery as their key highlights to garner a large base of customers. Furthermore, to align with the sustainability trend, restaurant owners are focusing on transparency by sharing stories of their workflow and supply chains with their diners.
However, increase in industry saturation and competition owing to the advent of multiple food service segments such as fast-food chains, cloud kitchens, and meal kit providers is hampering the development of the U.S. fast casual restaurant market. Moreover, rise in the prices of raw materials and ingredients in the U.S. impacts the profitability of fast casual restaurant owners, thereby restraining the market growth notably. According to CNN Business—a financial news website—grocery prices in the U.S. in 2024 were up by 27% in comparison to February 2020. Furthermore, the latest Consumer Price Index report states that grocery prices in November 2024 were 1.6% higher in the U.S. as compared to November 2023. On the contrary, several fast casual restaurant owners are focusing on expanding their delivery services and establishing ghost kitchens, which is anticipated to present remunerative opportunities for market growth.
Segment ReviewThe U.S. fast casual restaurant market is segmented into food type, mode of operation, and nature. On the basis of food type, the market is divided into burger/sandwich, pizza/pasta, Asian/Latin American food, chicken, and others. According to mode of operation, it is bifurcated into dine-in and takeaway. By nature, it is classified into franchised and standalone.
Key FindingsOn the basis of food type, the burger/sandwich segment held the highest market share in 2023.
According to mode of operation, the dine-in segment dominated the market in 2023.
By nature, the franchised segment was the highest shareholder in 2023.Competition AnalysisThe major players in the U.S. fast casual restaurant market include Chipotle Mexican Grill, Panera Bread, Shake Shack, Blaze Pizza, MOD Pizza, Sweetgreen, Noodles & Company, Five Guys, Qdoba Mexican Eats, and Zoe's Kitchen. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships to strengthen their foothold in the competitive market.
Key Market SegmentsBy Food TypeBurger/Sandwich
Pizza/Pasta
Asian/Latin American Food
Chicken
Others
By Mode Of OperationDine-in
Takeaway
By NatureFranchised
Standalone
Key Market PlayersChipotle Mexican Grill
Panera Bread
Shake Shack
Blaze Pizza
MOD Pizza
Sweetgreen
Noodles & Company
Five Guys
Qdoba Mexican Eats
Zoe's Kitchen