Fast-Casual Chains Post Strong Gains Despite Slowing Economy, Says Technomic

CHICAGO--(BUSINESS WIRE)--According to a new report by foodservice consultants Technomic, sales for the Top 100 fast-casual restaurant chains grew 10.8 percent, totaling $16.7 billion for 2008. Unit growth was strong as well; units for the Top 100 grew by 7.3 percent in the same period.

“The fast-casual segment is being pushed towards higher standards by the difficult economic environment”

Fast-casual restaurants are part of the limited-service segment, and provide fast service and fresh, high quality food in upscale settings. The Top 100 are the leaders in sales in the U.S., accounting for nearly all of the $19 to $20 billion in sales grossed by the fast-casual category as a whole. The new 2009 Top 100 Fast-Casual Restaurant Report provides rankings, analysis and profiles of the leading chains, and helping readers understand emerging trends and players in today’s fastest growing segment. Interesting insights include:

• Panera Bread/Saint Louis Bread Company led the Top 100 with total sales of an estimated $2.6 billion in 2008, a 16.2 percent increase over 2007, largely driven by unit growth of 13.5 percent. Chipotle ranked number two, achieving sales of $1.3 billion, representing sales growth of 20.7 percent. Its unit growth was up 19.4 percent over 2007.
• The Bakery Café menu category generated $4.3 billion in sales in 2008, over one-quarter of Top 100 total sales of $16.7 billion, growing its share of market considerably over 2007. Mexican and Chicken categories followed with sales of $3.6 billion and $2.6 billion, respectively.
• High sales-growth menu categories included Asian/Noodle (up 13.6 percent), Bakery Café (up 12.3 percent), Mexican (up 11.9 percent) and Hamburger (up 11.5 percent). Unit growth leaders were Hamburger (up 12.7 percent) and Asian/Noodle (up 12.2 percent).
• Many chains have focused their expansion efforts on building environmentally-friendly stores. This trend will continue because of its cost efficiencies and its positive social message.

“The fast-casual segment is being pushed towards higher standards by the difficult economic environment,” says Darren Tristano, EVP at Technomic. “They are forced to compete for diminishing diners’ dollars while maintaining high quality fare. Leaders are innovating by introducing new value-priced menu items, retooling menus to boost sales during slower dayparts and developing new programs like catering and selling retail packaged goods to supplement the bottom line.”

The 2009 Top 100 Fast-Casual Restaurant Report was designed to provide restaurant operators and foodservice suppliers with extensive information and analysis of top performers by sales and units; current trends within the segment; and identification of potential fast-casual growth opportunities. It includes comprehensive appendices listing the Top 100 chains alphabetically and by rank in sales and units, and contains profiles detailing concept and menu positioning.

To purchase or learn more about 2009 Top 100 Fast-Casual Restaurant Report, please visit www.foodpubs.com or contact one of the individuals listed below.

Contacts

Press Inquiries: Darren Tristano, 312-506-3850, or [e-mail]

Purchasing Details: Chris Urban, 312-506-3929, or [e-mail]

Report Details: Naomi Van Til, 312-506-3844 or [e-mail]

About Technomic, Inc.

Technomic provides clients with the facts, insights and consulting support they need to enhance their business strategies, decisions and results. Its services include numerous publications and digital products, as well as proprietary studies and ongoing research on all aspects of the food industry.