MINNEAPOLIS—One of the few foodservice business segments that’s expanding in the current economy is fast-casual. Chains like Panera, Fazoli’s, Smashburger, Noodles and Company and Pei Wei are attracting customers from higher-end, sit-down restaurants that expect more from their meal than what they might expect at quick-serve establishments. Although fast-casual restaurants are similar to QSRs in that customers order at the counter and then find their own seat, the food is generally of a higher quality and of a more diversified nature than fast food. It has a healthier perception and sometimes also includes a “freshness” aspect, such as in-house freshly baked bread, that helps drive business. However, the price point is generally comparable or only slightly higher than QSR items.
Although sales at the top-500 U.S. restaurant chains dropped $2 billion during 2009, Chicago-based Technomic Inc. notes that the fast-casual segment posted revenue gains.
