By Fred Minnick
What is fast casual?
As editor of Fast Casual magazine and (its) Web site, I am frequently asked this question. Sometimes I have to correct people who claim their restaurant is fast casual when it’s really a QSR or casual-dining restaurant. I can’t blame them for miss-categorizing their outfits; fast casual is a hybrid and, well, it’s the hip thing to be called.
With that said, it’s important we are very selective in who we call fast casual.
Here’s the formula I use:
Restaurant service model (food is brought to the table or food is picked up) + food is made to order + price points + nice décor = fast-casual restaurant.
Three out of four are required for me to call a restaurant “fast-casual.”
Is this an exact science?
No.
And now fast casual is more than just a segment; in a sense, it’s a culture-wide trend. Many top retailers are testing financial cafés and retail cafés.
For the expressed intent of providing fast-casual operators a quality resource, we have to set parameters for what we dub fast casual. You would be amazed at how many QSRs call themselves fast casual. And when you acknowledge that it sounds better than fast food, I guess I can see why. But if 80 percent of the menu items are born in the fryer or on the grill, and there is a 99-cent “value menu,” the restaurant is not fast casual.
Restaurant consultant Arlene Spiegel said it best: “You can’t just put in a sofa or an upscale design and call fast food a fast casual.” In other words just because McDonald’s now has upholstered seats does not mean it has evolved from quick service to fast casual.
That’s not to say, this Web site will not cover QSRs, coffeehouses or casual-dining chains that influence the fast-casual segment. Starbucks is a perfect example. One could peruse through FastCasual.com and find numerous Starbucks-related stories because Starbucks follows a fast-casual model and fast-casual operators can learn from Starbucks’ efficiency. And let’s face it: Starbucks is exceptionally well run and most people in this industry want to know what it’s doing.
Another example of a non- fast-casual segment we cover is ice cream stores. Cold Stone has a fast-casual model; the ice cream is freshly made, the décor is upscale and customers customize their selections. We write about Cold Stone when learning about its practices would benefit fast-casual operators. Interestingly, last week’s news story “Cold Stone hires former VP as president” was FastCasual.com’s most widely read piece.
However, we won’t typically run a news item that details Cold Stone’s latest limited-time offer because an LTO shake at Cold Stone has less impact on a fast-casual operator than if Panera Bread Co. tested shakes. We view operators like Starbucks and Cold Stone as peripheral rather than direct competitors while acknowledging their important impact on fast-casual dining
Hybrids of the hybrid
There are a few chains that are hybrids within the hybrid. We call these restaurants the 10 percent.
Because Culver’s units have drive-thrus, many industry analysts classify them as a QSR even though the chain’s food is made to order. We, however, acknowledge that the food is brought to the table and the average ticket is in the $9 range. Sure, they have a QSR component, but they are fast casual.
Back Yard Burgers’ average check is $6.50, which is low for a fast casual, but by our equation it meets three out of our four requirements. The food is made to order, brought to the customer and the store interior design and décor is quite comfy.
Many people think Subway is fast casual because the food is prepared before the customer. However, its low price points (in the $4 to $5 range), and informal décor place it firmly in the QSR category.
Like Subway, Quiznos has a couple of fast-casual components, but we consider both chains QSR. However, Fast Casual magazine and this Web site have covered sub restaurants because of their efforts to produce more premium sandwiches. Plus, we believe fast-casual sub chains, like Penn Station Subs, consider Quiznos and Subway competition. Again, QSR sub chains are peripheral competitors whose practices justify occasional attention.
With all that said, this site and the Fast Casual magazine exist to help operators attract more customers and get a chunk of the $511-billion restaurant industry.
We may debate what fast casual is within the industry, but at the end of the day, consumers don’t care what we call it. They just want to eat.
The history and the future
Where did fast casual come from? We believe as the Baby Boomer generation grew older they desired better food quickly. And now fast casual is more than just a segment; in a sense, it’s a culture-wide trend.
Many top retailers are testing financial cafés and retail cafés. These express concepts are certainly unconventional for these industries, but so were Panera Bread and Starbucks at first.
Fast Casual magazine publisher Paul Barron believes fast casual is a business component similar to drive-thru when it originated. After drive-thru was invented, it proved effective in variety of disparate businesses like banks, drug stores and dry cleaners. Today, it’s hard to imagine life without drive-thru.
I’d be willing to bet that in 10 years consumers won’t be able to live without the convenience and quality of fast casual, especially the restaurants. There are already scores of fan Web sites dedicated to favorite fast casuals like Chipotle and Atlanta Bread. Simply put, consumers love these restaurants, and they love this service model.
About Me
- Jeffrey Summers
- I am the expert you call when you need to learn how to increase top line sales, lower your operating costs, increase your profit margin, hire and train better managers and staff, evolve your operation into more and better ways of doing business, buy or sell a restaurant, improve your service, engineer (or re-engineer!) your menu, market your business better and less expensively, keep yourself from going nuts because you have no life anymore, open more and better restaurants, don't want to have to give up your first born child to pay a consultant and have more fun! My mission is to enhance the quality of life for my clients by providing the best products and services to help them achieve their personal and professional goals. I take great pride in my clients, my company, my commitment to service and the products I sell. I am a recognized expert in the hospitality industry with over 24 years of success at planning and executing strategies for delivering dramatic results, a former "GM of the Year" for 2 major, full-service, franchises, an Award winning Multi-Unit Executive with 2 of the largest restaurant chains in the U.S., published author, husband and father of two.