1851

There&rsquo;s a major shift happening in the booming fast casual segment of the restaurant industry. It used to follow fast food&rsquo;s lead&mdash;nationally recognized brands like McDonald&rsquo;s were the ones setting the pace for their competitors for years. But there&rsquo;s a new kind of restaurant that&rsquo;s gaining popularity among consumers and ultimately changing the way that fast casual concepts see success: upscale chains.

This new segment of fast casual restaurants is taking off across the country and challenging the norm in the entire limited service restaurant industry. Instead of relying on traditional fried food, brands are now finding ways to serve high quality, freshly made meals at a fast casual friendly price. <a href="http://www.tendergreens.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-upscale-fast-casual-chains-are-challenging-the-entire-limited-service-restaurant-industry-6329" target="_blank" rel="nofollow">Tender Greens</a>, for example, is a brand that offers its customers a fine dining experience without breaking the bank. And the brand&rsquo;s CEO, Erik Oberholtzer, says there are a few key reasons that make its business model not just run, but thrive.

&ldquo;First, we have a very casual, counter-service formant, which democratizes the dining experience. By taking away the valet parking, the host and the waiter, we reduced the costs straight away by 30 percent. Then, we run our restaurants efficiently. We can provide food quickly at a price point that many people can afford on a daily basis,&rdquo; he said in an <a href="http://nrn.com/healthy-dining/tender-greens-ceo-discusses-development-conscious-company?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-upscale-fast-casual-chains-are-challenging-the-entire-limited-service-restaurant-industry-6329" target="_blank" rel="nofollow">interview with Nation&rsquo;s Restaurant News</a>.

That ability to offer consumers an alternative to traditional fast casual concepts at a price point that they can afford has created a lasting ripple effect in the industry. Other brands now have to rethink their strategies in order to keep up with these new concepts and continue to bring in new business. The reality is that fast casual restaurants like Tender Greens and the DC-based salad chain <a href="http://www.sweetgreen.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-upscale-fast-casual-chains-are-challenging-the-entire-limited-service-restaurant-industry-6329" target="_blank" rel="nofollow">sweetgreen</a> are capitalizing on the fact that consumers value healthy, farm-to-table meal options on the go.

Beyond their menus, upscale fast casual restaurants are also using technology to their advantage. By making mobile apps, digital menu boards and tech friendly environments a part of their model&rsquo;s DNA from the very beginning, they&rsquo;re successfully tapping into the next&mdash;and largest&mdash;generation of American consumers.

In an <a href="https://techcrunch.com/2015/07/01/sweetgreen-harvests-35-million-to-satisfy-millennial-salad-cravings/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-upscale-fast-casual-chains-are-challenging-the-entire-limited-service-restaurant-industry-6329" target="_blank" rel="nofollow">interview with TechCrunch last year</a>, sweetgreen co-founder Jonathan Neman said, &ldquo;Food is the last frontier of mobile. There&rsquo;s been very little done to connect restaurants with their consumers and leverage tech to make that a better experience, and we want to lead that charge.&rdquo;

Going forward, upscale fast casual chains will grow across the country. And as they open up their doors in new communities, the limited service segment of the restaurant industry will continue to evolve with them.

<a href="http://fortune.com/2016/02/18/sweetgreen-entrepreneurs/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-upscale-fast-casual-chains-are-challenging-the-entire-limited-service-restaurant-industry-6329" target="_blank" rel="nofollow">Co-founder Nathaniel Ru told Fortune</a>, &ldquo;We&rsquo;re creating a brand that stands for something. We want to feed more people better food.&rdquo;

How Upscale Fast Casual Chains Are Challenging the Entire Limited Service Restaurant Industry

1851 Franchise

Brands like Tender Greens and sweetgreen are increasingly popular among consumers across the country.


This brand page has been paid for by 1851. Content within this page that is paid will showcase a Sponsored icon. This means the brand has engaged 1851 FRANCHISE to write the content. Content without the Sponsored Icon is aggregated media placements the brand earned. Questions can be sent to editorial@1851franchise.com

how-upscale-fast-casual-chains-are-challenging-the-entire-limited-service-restaurant-industry

Fresh Coat

Photo of Fresh Coat vehicle with ladders on top

The Rise of Home Improvement Franchises: Why Now Is the Time to Invest

why-invest-home-improvement-franchise-fresh-coat

HomeTeam Inspection Service

Photo of HomeTeam inspector in red polo and khaki pants, walking by branded vehicle

Real Estate Today: Behind the Drywall: The Truth About Home Inspections

purpose-of-home-inspection

Dog Training Elite

Dog Training Elite Franchise - DTE - National Service Dog Month - 1851 Franchise

Celebrating Service Dogs: Why Proper Training Changes Lives — And How Dog Training Elite Is Leading the Way

dog-training-elite-national-service-dog-month

Senior Care Authority

How This Senior Care Authority Franchisee Turned Love for His Grandparents Into a Lifelong Calling

how-this-senior-care-authority-franchisee-turned-love-for-his-grandparents-into-a-lifelong-calling

Hometown News: Like Father, Like Son — Family-Run Inspection Business Blends Generations of Expertise and a Keen Eye for Detail

father-son-home-inspection-franchise-florida

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Design with American and Federal Reserve flags against light blue background

Federal Reserve Expected To Cut Rates by Quarter Point, a Move That Could Boost Franchise Growth

fed-rate-cut-boosts-franchise-growth

Potbelly to be Acquired by RaceTrac in $566 Million Deal 

racetrac-acquires-potbelly-in-566-million-deal

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

health-care-hiring-slowdown-in-home-care-franchise-opportunities

Caribou Coffee Names Scott Kennedy CEO, Eyes Continued Growth

caribou-coffee-names-scott-kennedy-ceo-eyes-continued-growth

McDonald’s Launches New Extra Value Meals as Consumer Demand for Value Continues to Climb

mcdonalds-launches-extra-value-meals

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

Friendly’s Parent Company Acquired by Multi-Unit Franchisee as More Owners Take the Lead in Brand Acquisitions 

friendlys-parent-company-acquired-by-multi-unit-franchisee-as-more-owners-take-the-lead-in-brand-acquisitions

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

1851 Keyword - The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

part-time-franchises-picking-the-right-model

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

How Upscale Fast Casual Chains Are Challenging the Entire Limited Service Restaurant Industry

MORE STORIES LIKE THIS