Posted on 03/08/2015 11:14:38 AM PDT by SamAdams76
BRIDGING a gap in the market between fast-food joints and full-service restaurants, fast-casual chains such as Shake Shack, Nando’s chicken restaurants and Chipotle Mexican Grill are enjoying success across the world. The combined sales of American fast-casual outlets rose by 10.5% last year, compared with 6.1% for fast-food chains, according to Mintel, a market-research firm.
There are four main reasons why these outlets have been winning customers. First, they promise “fresh” food, meaning at the very least not frozen. Chipotle also says it uses, where possible, meat from animals raised without hormones or antibiotics, and organic and locally grown vegetables. Having once been controlled by McDonald’s, Chipotle is now a threat to its former parent. Although still relatively small, it is enjoying 20% annual growth, quite a feat in the crowded restaurant market.
Second, they offer diners a high level of customisation, such as choosing each ingredient in a sandwich, burrito or burger. This appeals to fussy eaters and those with allergies. The service is not always as quick as at a burger joint but, it seems, quick enough. Some fast-casual chains let diners order at their tables.
Third, clever pricing helps these chains optimise their profits. They offer some dishes at around the same price as those at burger joints, but they seem to be better than McDonald’s at nudging diners towards pricier dishes and extras. Fast-casual chains typically manage to squeeze 40% more out of each diner’s wallet than fast-food joints do.
Fourth, fast-casual chains often try to give each outlet a touch of distinctiveness. This distances them in the eyes of consumers from the “corporate” feel of burger chains—and their legacy of bad publicity—says Sophie Carroll of Planet Retail, another research outfit. Nando’s, for instance, decorates its restaurants with South African art.
For all their success so far, some of the fast-casual chains are finding that as they get bigger, they come under more scrutiny. Campaigners have recently criticised Chipotle and Panera Bread for using ingredients from genetically-modified crops and artificial additives—they say they are working to eliminate these. Campaigners against the use by companies of (legal) tax-avoidance techniques have added Nando’s to their targets. Fast-casual restaurants are joining the ranks of big business and having to endure the attention that comes with it.
I’m doubly glad I returned to BFE, where I was raised-not enough people or industry for people with money to drive anything of note-they just own dude/guest ranches...
There is a locally owned coffee shop on the FM, but I take my own coffee to work on jobsites-I like Fair Trade Columbian-and it is less expensive per 1lb bag than the “name” brands like Starbucks, Dunkin Donuts etc at the local market...
I agree about Panera being a girlie place. Our family quit going there when they announced their No Gun policy.
Used to be a good restaurant called Mimi’s close to us. Then they started having all their local Democrat social events there so we quit going. Noticed last time I was in that area that it has closed and another restaurant has opened in its place.
There’s a Steak And Shake a couple blocks from me. Lot better than McDs, Boogerchef, etc. Not great, but better! And I’m an old man with coupons!
“Where I am is very close to a very large concentration of office jobs just south of Cleveland.”
Independence?
Flair and comfortable make the best dining-out experience, don’t they? I love the individuality of each restaurant here-everything from burgers to a place on the river that has great steaks, sautéed fresh veggies and a good wine selection-for about $20-$25 per person, not including bar drinks or tip. The deck overlooking the grounds and river is open for dining on all but the coldest nights, and you can walk by the river...
A lot of people don’t know how to cook and/or don’t care. That is what drives the restaurant/delivery/grocery deli business, IMHO.
I host foreign students in my home through a program that has a contract for meals. The contract says I will make a home-made meal (not a frozen entree) every night for dinner during the student’s stay (3 weeks). So, I do that, and I have fun with it. However, my students have told me that other people in their program have been served things like take out pizza and instant noodles for dinner, night after night. My most recent student says her friend was here a week before she got her first “cooked” meal from her hosts.
Some Americans won’t serve and eat a decent dinner even when they are being paid to do so!
” If you walk into a Chinese restaurant and all the customers are non Oriental, do yourself a favor and walk out.”
In Cleveland’s “Chinatown” area, the restaurants are in a fairly small area of just a few city blocks. I do a cruise by, and start at the place that has the most Hondas and Toyotas in the parking lot. The owners of the restaurants compete fiercely for the best chefs, and often head to China/Honk Kong to recruit. The most Asians are gonna be at the restaurant that currently has the best chef, and they pass the word around. So the “best” place changes every few months. Currently I like the Dim Sum at Bo Loong, with Li Wah a close second.
My wife and I did that for a couple years with German students. They loved my barbecue and whatever my wife pulled together. On the last night, it was tradition that they would cook for us one of their traditional meals. Even though they were teenage boys, they could cook pretty well.
In one surreal experience, one of the boys (17 years old) had me take him to the liquor store that had a large selection of imported beer. He gave me a thorough education on beer, what was good and what was garbage. To this day, I still drink some of the dunkels and pilsners he recommended. In Germany, the drinking age is 14, though I understand you need adult supervision until either 16 or 18.
I’ve never gotten around to Freddy’s, I mean to but there’s a lot of competition out there, and I’m not out and about that much.
I’ve actually gotten non-pancakes at IHOP, and while the rest of the breakfast menu is solid everything else is pretty disappointing. I love those fizzy drinks they have, but they really need some rum in them.
That’s one of the things people don’t get about the fast casual. None of them are really great food, but they don’t cause you shame, which is something none of the “standard” fast food places can claim. Pretty darn good, 20 minutes and $10 turns out to have been an untapped market.
When we lived in the burbs, we avoided the restaurants in the city, and always went to a restaurant out here, hidden on a Farm Road and owned by a friend and her husband-so I have never waited more than 30 minutes-at the bar-for a table. I would have left and never returned if I’d been kept waiting longer...
Sounds like a lot of young people in cities are going to starve if something goes boom, if they can’t keep and cook food at home. Eating and entertaining at home is still what people do here, unless it is a date, special occasion or Saturday night and you don’t want to cook. Nearly all the restaurants here serve beer and wine, and at least half have a full service bar, whether it is a place with a wine list and fancier menu or a roadhouse with a jukebox, burgers and a dance floor...
There are lots of hills, creeks, and one-lane roads and bridges here-if there is ice, snow, or a lot of rain, those bridges are either icy or under water-you are not going to get more than a mile of two from your gate, even with a 4x4. Not having food to cook is not an attractive option.
There was a successful restaurateur in NYC many years ago who operated a variety of shops successfully. BUT he had a 6 month make-it-or-break-it rule. If they weren’t successful within that 6 months he’d shut it down. And go on to his next restaurant.
“Chipolte still hasn’t discovered healthy bread”
I’m lost. I’ve only ever seen Chipotle serve burritos.
“I take the bulk of my meals at home so I can watch them being made.”
You got someone to make you sammiches?
I disagree on the taste of grass fed beef. I can tolerate burgers made with grass but IMO there’s an enormous taste difference between corn fed angus and local grass fed beef.
I like this trend for the flavor and quality, but not so much for price. Panera costs us as much as a full serve, sit down place for lunch but I really like their salads. Smash is not as good as five guys and costs a little more but my wife likes the layout more. There is a place named Pei Wei ( cafe version of PF Changs) with a similar model but they have been reducing quantity and quality over the past year so we don’t go anymore. Our local Chipotles gives the hispanic people larger, more generous portions than white people so stopped going there after my complaints were ignored.
When we lived in Kenya all we could buy was grass fed beef. Everyone in the family, kids included, was glad to get back to US grain fed beef.
Just a different taste. Folks tend to like the food the grew up with.
They don’t have whole grain burritos, the last time I was there. And I don’t think they make their own.
I’ve heard that Shake Shack is very good, but it’s new here and I think that there are only three of them here in Massachusetts. We’re nowhere near any of them.
I noticed that. A few years ago, the turkey on a Panera sandwich looked like real turkey. Now it’s a slimy emulsified turkey-like substance.
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