Fast Casual Restaurant Statistics You Should Know Before Opening Your Own
If you’re considering investing in a fast casual restaurant franchise, it’s important to stay up-to-date on current numbers and trends to help inform your decision. This list of fast casual restaurant statistics will help you understand the fast casual industry’s future outlook, current customer base, and where the best investments will be.
According to a report from Expert Market Research, the global fast casual restaurant market was valued at close to $189.7 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 11.5% between 2023 and 2028 to reach a projected value of around $364.52 billion by the end of the forecast period.
Increasingly, diners and savvy business owners are catching wise to the appeal of fast casual dining, and the numbers speak to the industry’s ability to cater to a wider range of customers than fast food or fine dining alone, thereby providing a more attractive option for motivated investors.
The Good and the Bad
According to Forbes, the cost to open an independent fast casual restaurant can range from $250,000 to $400,000 just to get up and running. Fast casuals have a higher average sales per unit compared to other segments of the restaurant industry. On the other hand, independent fast casuals have a higher failure rate compared to other segments of the industry. This is something to keep in mind when considering investing in a fast casual franchise. While partnering with a franchise may be more expensive at the outset, fast casual restaurant statistics show that franchises have a higher success rate than their independent counterparts.
When evaluating an investment opportunity, understanding the costs associated with opening a fast casual restaurant is key. For a total initial investment between $346,400 and $768,760*, Teriyaki Madness epitomizes the advantages of franchising by helping you every step of the way toward building your fast casual business.
Trends to Consider
Looking at the latest fast casual dining statistics, off-premises dining has become increasingly popular over the years, especially at the height of the COVID-19 pandemic. Diners who want something more elevated than drive-thru appreciate delivery and takeaway options from their favorite fast casual establishments. According to a report from the National Restaurant Association, off-premise dining options accounted for around 60% of fast casual restaurant sales in 2020, helping sustain many establishments’ revenue streams. However, a new study found that customers are happy to return to in-person dining, with a 48% increase in on-premise dining in 2022 in comparison to the previous year.
Another trend that’s gaining traction in the fast casual restaurant industry is the demand for healthier, organic options. As people become more health-conscious, they’re gravitating towards restaurants that offer healthier menu items without sacrificing taste or convenience.
Customers are also increasingly willing to order directly through the restaurant’s app, rather than in person or by phone. This trend has been accelerated by the pandemic and is likely to continue as customers become more comfortable with digital ordering solutions.
A fast casual restaurant franchise that offers the most options for diners will also provide the most opportunities for potential investors to reap the rewards of their business.
The Statistics Are in Your Favor with Teriyaki Madness
Since bursting onto the fast casual dining scene in 2003, Teriyaki Madness has continued to accumulate numerous awards and accolades as one of the nation’s most exciting and fastest-growing big restaurant franchise. With 125+ open locations and nearly 60 in development to open in 2023, TMAD is spreading the winning franchise formula across the country, and hungry investors are lining up to get in on the opportunity.
At Teriyaki Madness, the focus is on delivering an exceptional fast casual dining experience without sacrificing convenience or affordability. TMAD leverages the latest trends in healthy eating and digital ordering technology to ensure that the product delivered meets the needs and expectations of customers while also providing franchisees with a full-service brick-and-mortar business ownership experience.
To learn more about TMAD, download our Franchise Report.
*Refer to Item 7 of our Franchise Disclosure Document for a full breakdown of investment costs.