New demands call for shifts from limited-service restaurant operators

Fast casual may still be the industry darling, growing faster than any other segment, but the limited-service segment as a whole is seeing an uptick in sales. Quick-service and fast-casual concepts are also seeing a shift in what consumers expect from these types of spots, finds Technomic's Future of LSR Consumer Trend Report. Here's a look at how the segment is changing. 

Source: Technomic Future of LSR Consumer Trend Report, powered by Ignite

The growth was largely driven by unit growth, not increased traffic. In fact, diners visited fast casuals less frequently, with those who went at least weekly down 5 percentage points from 2016.

Source: Technomic Future of LSR Consumer Trend Report, powered by Ignite

Just over a quarter of fast-food customers think that the food is healthier and that the overall dining experience has improved. Those percentages are slightly higher for fast casuals.  

"QSR operators will work with suppliers to ensure that they offer ingredients with the health claims that make consumers feel good about what they eat. … Among these top claims are real, natural and additive-free claims. Already, fewer consumers now than in 2016 say they feel a little guilty if they visit QSRs too often,” finds Technomic.

Source: Technomic Future of LSR Consumer Trend Report, powered by Ignite

Of those off-premise orders from quick-service restaurants, 9% are for delivery and 63% are for takeout. Four in 10 fast-casual orders, excluding bakery-cafe concepts, are for dine-in customers. 

Of those ordering delivery, only 14% of limited-service diners order via third-party delivery apps or websites. The majority use the restaurant’s app or website, or still turn to the telephone.

Most off-premise orders are eaten at home. School and work are the second-most common venues for eating takeout meals. 

Source: Technomic Future of LSR Consumer Trend Report, powered by Ignite

Nearly a quarter of fast-casual customers spend more than $12, while 17% spend less than $6. About seven in 10 quick-service customers spend $8 or less, with 43% spending under $6. 

Source: Technomic Future of LSR Consumer Trend Report, powered by Ignite

"While the customer base is largely unchanged, check averages have grown as QSR operators experiment with bundled deals and premium options, while maintaining a menu of lower-priced items,” finds Technomic.

Source: Technomic Future of LSR Consumer Trend Report, powered by Ignite

Just over three-fourths of fast-casual diners want more build-your-own options, too. 

Source: Technomic Future of LSR Consumer Trend Report, powered by Ignite

While QSR menus are shrinking, the number of items on the menu at fast casuals is up 0.6%. 

Source: Technomic Future of LSR Consumer Trend Report, powered by Ignite

The Technomic Future of LSR Consumer Trend Report offers access to consumer survey information, trend analysis and searchable online tools to help you navigate the changing opportunities, challenges and consumer attitudes regarding quick-service and fast-casual restaurants. The full report is available for purchase on Technomic.com.