A lot of the growth and innovation is being fueled in the fast and casual dining market by small and regional chains.
Similar to the relationship between the Instagram generation and strong marketing of small brands. This has shifted expectations around restaurant designs, ingredient sourcing, services, and food.
Europe has demonstrated high potential for casual dining as consumers across the region are as short on time as those in the US and are seeking out entirely new dining experiences.
Cross-referencing is a tactic that is gaining traction in fast casual kitchens so as to not stress workers working in the quick service environment, and the kitchen in general.
Moreover, authenticity in the dining experience is being given a lot of attention.
Good value meals, ease of ordering, decent customer services, and high-quality food and taste have provided momentum to the Europe fast-casual dining market.
Europe Fast-casual Dining Market: Dynamics
Over the years, fast-casual dining has evolved in terms of dining patterns.
Factors such as cultural influence, the flexibility of fast casual dining, and increased technological innovations are driving the Europe fast-casual dining market.
The advent of digital technology is changing the food industry significantly. It helps to customize orders, gather the customer’s data, and create lucrative rewards and discounts.
Prominent vendors have integrated applications that allow customers to make the payment via debit and credit cards, Apple Pay, or PayPal.
For instance, Firejacks offers Pay My Bill, which enables diners to pay their bills electronically via a compatible mobile device at the restaurant.
Similarly, Chipotle has created a tech-enabled second make line – i.e., a second burrito assembly line where all online orders are assembled. It has fitted stores with visual screens that show which ingredients are added into each burrito, thereby improving accuracy.
Digital advancements are bolstering the franchise development model. It helps to improve communication by enabling franchisers to monitor everything in real-time.
Europe Fast-casual Dining Market: Segmentation
The market research report includes a detailed segmentation of the market by daypart, channel, format, and geography.
The Europe fast-casual dining market by dayparts can be segmented into lunch, dinner, breakfast, and snacks.
The lunch segment grew gradually and was valued at around $5 billion in 2018. Increased lunch outings by office goers have significantly contributed to the segment growth.
Most casual restaurants are trying to leverage upon healthy food, combo options, and competitive pricing. Vendors are slowly including beverages as part of the portfolios from signature hot beverages to alcohol.
The diner segment is the second most developing sub-segment of the Europe fast-casual dining market. It is witnessing high popularity among customers, especially the family segment and serves high-quality food under the quick service model.
The Europe fast-casual dining market by channels can be segmented into on-premises and off-premises.
The on-premise casual dining segment is developing and is expected to grow at a CAGR of around 5% during the forecast period. Increased outings and the rise in disposable income have given momentum to the on-premise casual dining segment.
Further, to make fast-casual restaurants more millennial-friendly and increase dwell time, vendors are adding elements that are likely to fuel conversation, spread fun and frolic, and increase community interactions.
The Europe fast-casual dining market by format can be segmented into independents and chains. Independent units dominated the market and are expected to grow at a CAGR of around 6% during the forecast period.
High responsiveness toward customer needs and the element of freshness and surprise are the key factors for market growth. The independent segment has further been fast-tracked as a lot of internationally-recognized professional Chefs have been attracted to the market.
For instance, Paul Bocuse’s Ouest Express, Ferran Adria’s Fastfood, and Marcus Samuelsson’s Street Food in Western Europe are offering high-quality food and quick service together.
These Chef-driven concepts have rendered a level of creativity to independent fast casuals, thereby propelling the Europe fast-casual dining market.