Hungry for value

Empower Personal Dashboard^TM shows Americans are spending almost $40 a month on fast-casual food.

Fast-casual seems to have hit a sweet spot with consumers, combining quality ingredients with speedy service – at a price point somewhere between a fast-food meal and dining at a casual restaurant.

Fast-casual chains outperformed during the second quarter of 2024, with chains like Cava, Wingstop, Chipotle, and Sweetgreen all seeing increased sales and footfall:^1,2,3,4

• Cava traffic grew 9.5% and same-store sales rose 14.4%
• Wingstop experienced a whopping 28.7% jump in same-store sales
• Chipotle saw its visits rise 8% and same-store sales grow 11% year-over-year
• Sweetgreen same-store sales increased 9%

Both CAVA and Sweetgreen stock have roughly tripled in value since the start of 2024.⁵ Shares of Wingstop (+52%) and Chipotle (+22%) have also seen substantial increases. For comparison, the S&P 500® Index has risen roughly 15% so far this year.⁶

Put your money where your mouth is

While the cost of eating out ticked up 0.3% in August, it’s a splurge many are willing to make –  51% of Americans find dining out more convenient than eating in.^7,8

Americans visit their favorite fast-casual joints once to twice a month, according to Empower Personal Dashboard^TM data.⁹ Gen Zers tend to spend the least per visit at $19.36 – that’s 40% less than Millennials ($27.20), 35% less than Gen Xers ($26.05), and 29% less than Boomers ($25.05). On average, Americans are spending almost $27 a visit at fast-casual restaurants.

Empower analysis shows foodies spent the most per transaction* at salad company Chopt, Mediterranean favorite Zoë’s Kitchen, and veggie hotspot Flower child.

Fast-casual restaurants by average transaction

1. Chopt: $72.64

2. Zoë’s Kitchen: $52.44

3. Flower Child: $35.85

4. Pizza Hut: $33.04

5. Firehouse Subs: $32.81

6. Schlotzsky's: $32.74

7. BurgerFi: $31.22

8. Mendocino Farm’s: $30.60

9. Portillo’s: $30.42

10. Torchy’s Tacos: $29.88

11. Blaze Pizza: $28.14

12. Wingstop: $27.85

13. Five Guys: $26.77

14. CAVA: $26.56

15. Chipotle: $24.84

*Source: Empower Personal Dashboard^TM data, August 2023 – July 2024.

What’s getting customers in the doors? Convenience may be one factor: Sweetgreen has it down to 3.5 minutes at Infinite Kitchen locations.¹⁰ Meanwhile, Chipotle is testing a new machine that it says can cut and peel an avocado in under 30 seconds. If the Autocado proves successful, it'll significantly reduce the time and energy needed to make large amounts of the chain’s popular guacamole.¹¹

Time is money for Americans who value an hour of their day at $240, on average. Empower research reveals Millennials – the highest fast-casual spenders on average – would be willing to pay up to $10,000 a year to avoid cooking their own meals.

A strong appetite for fast-casual

While the restaurant industry as whole has seen sales slowdown and 47% of consumers have report having less disposable income, fast-casual chains are a rare spot of growth.¹²

Fast-casual sales grew by 11.2% last year, 7.9% for fast-food and 4.7% for casual dining, suggesting diners could be trading down from traditional full-service restaurants.¹³ This year, the trend continues: Fast-casual chains haven’t seen the same consumer slowdown as the broader industry and are expected to see a 6.4% growth in sales in 2024.¹²

With the price gap narrowing between fast-food and fast-casual restaurants, some consumers are eating up the choices on offer.

Last year, fast-food chains raised prices more dramatically than fast-casual counterparts, narrowing the pricing gap between the two segments– to just an extra $2.64 in the first quarter of 2024.^14,15 Plus, a bowl from the likes of Cava, Sweetgreen, and Chipotle comes with a side of speed, convenience, and (often) healthy options.

Grab-and-go headlines

Fast-casual brands are focused on customer-experience to provide greater value to cost-conscious consumers. Here’s how they plan to deliver:

• Social shout-outs yield bigger scoops: Chipotle is re-emphasizing generous portions at their restaurants.¹⁶ Half (52%) of consumers say they prioritize restaurants that offer bigger portions, so they have leftovers for another meal.¹⁷
  
  
• Delivered to your (car) door: Chick-fil-A is redefining fast-casual convenience with a new two-story drive through concept.¹⁸ The building features a kitchen on the second floor, with a conveyor belt that delivers orders to team members on the ground.
  
  
• Unlimited sips are getting even sweeter: Panera is set to launch a “bakery transformation” featuring a collection of pastries, cookies, and cake, alongside 3 free months of their Unlimited Sip Club.¹⁹