Here's a tip: Fast-casual lacks definition

A group of panelists at an analysts' conference here couldn't seem to agree on a strict definition for fast-casual, said to be the fastest-growing segment of the restaurant industry. A group of panelists at an analysts' conference here couldn't seem to agree on a strict definition for fast-casual, said to be the fastest-growing segment of the restaurant industry.

But all agreed that they want to be in the category.

Brinker International executive VP Starlette Johnson, McDonald's director of corporate strategy Jordan Krolick, Carrols Corp. concept chief John Haywood, and industry veteran Lane Cardwell all debated what fast-casual means and what it rules out.

Technomic estimates that fast-casual is a $6 billion segment, led by bakery-cafes with a 20% share, followed by home-meal replacement and Mexican restaurants, with 15% each.

While consumers are flocking to fast-casual, food quality and service practices vary widely across the industry, making it difficult to craft precise definitions.

Pasta Pomodoro, for instance, is said to be fast-casual, yet sends waiters to deliver food to patrons' tables. Does that move it into the casual-dining category?

"Pasta Pomodoro is at the lowest end of casual-dining and the highest end of quick-casual," was Krolick's assessment. "How you differentiate it from Red Robin [Gourmet Burgers], I don't know. The waitress service component pushes it to the border of casual-dining."

Cardwell added that tipping is a key element separating fast-casual from casual-dining. Noodles, a well-known fast-casual player, posts a sign in its restaurants indicating a "no-tipping zone."

Panelists came up with terms like "fast-food plus" and "quick-casual minus" to refer to concepts that straddle the lines between the various categories.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

Despite their complaints, customers keep flocking to Chipotle

The Bottom Line: The chain continued to be a juggernaut last quarter, with strong sales and traffic growth, despite frequent social media complaints about shrinkflation or other challenges.

Operations

Hitting resistance elsewhere, ghost kitchens and virtual concepts find a happy home in family dining

Reality Check: Old-guard chains are finding the alternative operations to be persistently effective side hustles.

Financing

The Tijuana Flats bankruptcy highlights the dangers of menu miscues

The Bottom Line: The fast-casual chain’s problems following new menu debuts in 2021 and 2022 show that adding new items isn’t always the right idea.

Trending

More from our partners