Why Expansion to Fast Casual Works for Established Restaurant Brands

Casual dining operators' growing interest in opening fast casual concepts can be best explained in two ways: they are cheaper to operate than existing stores and appeal better to younger consumers. Fast casual also represents a booming segment of the restaurant industry currently, with sales expected to grow at a healthy 7 percent clip over the next five years, according to investment research firm Morningstar. Fast casual brands have also reported a 10 percent sales spike since 2014, far outpacing other concepts. And while full-service restaurants require more labor and real estate to accommodate guests, resulting in higher labor and rent costs, the exact opposite is true for fast casual chains like Chipotle or Sweetgreen. These brands generally require half the square-footage of