Fast-casual has moved from a trend to an expectation, even a requirement for hospitality-focused operations like resorts, hotels, or casinos as a way to grab a healthy bite before enjoying the afternoon. The younger consumers have disrupted fast-food operators as they have shown a preference for healthier, fresher, and more upscale options when in a hurry. Many members of Gen Z have never visited some large fast-food chains and have no plans to do so when a bento bowl, vegan option, or fresh salad is available.
Fast-casual growth
Fast-casual had a market value of $125.6 billion in 2019 and is expected to have a compound annual growth rate (CAGR) of 10.6% from 2021 to 2027. This will push the total market value to $209.1 billion by 2026, far exceeding the anemic growth rates of traditional fast food. This market is no longer a trend; it’s an expectation.
Growth isn’t the only plus for the fast-casual market, excellent profits are also a component. The average profit margin of fast-casual restaurants is 6-9%, compared to 3-5% for full service. As volumes grow the margins increase further as fixed costs are covered and variable costs drop due to greater efficiencies in staffing needs.
Hybrid options: the newest trend
While fast-casual has become a norm, a new trend recognizes the need of customers to eat healthy and quick during the day and then prefer the elegance of full service at night. This hybrid model can serve both market needs from one space and with limited staffing through the use of easy, modular, and versatile serving equipment.
Often neglected in hospitality is that many people prefer fewer choices so long as the choice that fits their needs is available. For many, making one choice is a welcome respite from lives where too many choices exist in their daily lives. The ability to switch with ease fits their needs and the needs of the hospitality provider.
An example would a resort hotel that wishes to serve both the dining needs of its customers by switching from lunch to dinner menu and service style in the evening, making the best use of limited space. Using flexible Traveler Serving Tables, the restaurant can transform the dining area to fit the night’s menu needs with a serving area that are work individually or together.
This next level of hospitality flexibility can accommodate a weekend brunch menu, accommodate outdoor dining, transform common areas and event areas as necessary, and transition dining areas between purposes. Having such a degree of flexible hospitality foodservice retains keeps customers in-house for dining as it gives them an ease of options.
Service flexibility with the Travelers Series.
A hospitality operation with a modular serving station that doesn’t require table cloths and is easy to clean up can respond quickly at a low cost. Modular serving stations are perfectly tailored to meet the needs of both customers and organizations and the demands of this new dining trend.