Fast Growing Fast Casual

By KATE AOUEILLE As you sit down to read this article, you will judge in just a couple of seconds whether it’s worth your time to finish it. In today’s modern economy, time is arguably the most important commodity in consumers’ lives. If a brand is able to make a lasting impression on the consumer, it has accomplished a huge feat. Because, in the midst of seeing an ad in a newspaper and reading the first sentence of an article, the consumer has already checked their phone, got up for another cup of coffee, and realized they will be late for work because of a huge traffic jam. The fast-casual dining segment of the restaurant industry has been able to emerge as a leader because major chains have understood the No. 1 need of their customers--time. They have dominated the rest of the industry because they have been able to couple quality food and an upscale dining atmosphere with incredibly quick service into one offering. By focusing on a specific genre of food, these restaurants have excelled through a simple menu and operational model. In the past, quality, quick, and upscale did not go hand and hand, as was the case with the fast food industry. Consumers had to compromise one for the other. Today, more brands are starting to catch up. According to FastCasual.com, the fast-casual dining segment is the fastest-growing segment in the restaurant industry. Brands that fall into the category are major chains such as Chipotle, Panera Bread, Noodles & Company, and McAlister’s Deli. Founded in 1989 in Oxford, Mississippi, McAlister’s Deli is at the forefront of the segment’s growth. A sandwich, soup, and salad franchise, the brand has seen high average unit volume sales throughout the recession, boasting 313 units from coast to coast. Peter Wright, McAlister’s vice president of franchise development, attributes their success to the “simplicity of the concept.” From a customer and investor standpoint, the level of customer service combined with traditional southern hospitality and environment gives McAlister’s Deli a competitive edge. In fact, these qualities have driven a number of multi-unit, multi-brand operators to flock towards the restaurant’s concept. Due to their multi-unit requirement, the company is able to find experienced franchisees who are interested in building long term value and long term growth, adds Wright. Emerging from the recession, franchisors are following the trend of multi-unit development because it enables them to target strong franchisees with business experience in their restaurant industry and possess a foundation in multi-unit operations. Buffalo Wild Wings, Au Bon Pain, and Cosi also maintain similar multi-unit requirements. Restaurant concepts that haven’t been able to capitalize on expediency and cater to the ever-changing consumer and investor will soon be lost to brands that can adapt. Wright would argue that even with its 22-year history, McAlister’s Deli has been able to continuously provide a quality product, competitive price point, quick, friendly service and an upscale dining experience that have allowed it to excel even through this economy.