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Fast casual restaurants claim greater share among Canadian limited-service chains

Fast casual sales growth outpaced outpaced QSR growth in a recent survey of the top 200 Canadian limited-service restaurants conducted by Technomic.

September 10, 2014

Fast casual sales growth outpaced outpaced QSR growth in a recent survey of the top 200 Canadian limited-service restaurants conducted by Technomic.

QSR sales growth inched up 4.4 percent in 2013, while fast casual sales grew 13.9 percent.

The gains continue even as consumers note fewer distinctions between the two segments in some areas — friendly service, taste and flavour of food, cravability and menu variety.

According to a news release from Technomic, consumers say that ambiance enhancements would make them want to visit limited-service restaurants more often. Amenities like loyalty programs or free WiFi could also help get more consumers in the door. Further, young consumers in particular say that delivery service would encourage them to order from limited-service restaurants more frequently.

"The fast casual sector positioned itself as a high-quality yet affordable middle ground between quick and full service," said Darren Tristano, EVP of Technomic, in the release. "Limited-service concepts will need to keep upscaling their dining experience without sacrificing their lower price points or value message. To continue taking share, fast casuals should concentrate on improving speed and convenience via tech innovations like mobile-app or kiosk ordering and payment systems."

Additional findings in Technomic's "Canadian Future of LSR: Fast-Food & Fast-Casual Restaurant Consumer Trend Report" include:

• Fewer limited-service restaurants customers are cutting back: 30 percent of QSR patrons (down from 36 percent in 2012) and 33 percent of fast casual customers (down from 40 percent) cut back on extras to save money.
• Health is important for LSR occasions: about half of consumers say the availability of healthy options is important at quick-service (49 percent) and fast casual (54 percent) restaurants.
• A fifth of consumers (22 percent), and 27 percent of men, call for more adult beverages at fast casuals, while 15 percent (and 21 percent of consumers aged 19–34) would like to see more at QSRs.