Visits and sales in the UK’s fast-casual sector increased in the year to the end of September 2013 compared to the previous year helped by a growth in trade from families, according to new research from the NPD Group.
NPD, which categorises the sector by looking at 12 chains including Byron, Wagamama and Nando’s, found that visits increased 0.9% and sales increase by 1.7% during the year, with sales gains coming off an average annual growth rate of 3.4% and visits of a CAGR of 2.1%%.
The company said that the sector’s performance has slowed a bit, but is still outpacing the balance of the industry and expected to remain strong going forward driven by unit expansion, more players such as Five Guys, Smash Burger, more Chipotle openings, and more willingness to get in on the deal and promotion game which traditionally has not been a core component of fast casual.
When comparing the fast casual sector (made-up primarily of the premium tier brands within QSR) the group found that the percentage of visits sourced to parties with kids was “astounding”, with 44% of visits sourced to parties with kids for fast casual in 2009 versus 45.4% for the same 52-weeks ending September 2013. For comparison, total out of home eating attributes 28.7% of visits to parties with kids, QSR 33.8%, pubs 33.7% and FSR 38%.
NPD said: “The fat casual sector resonates with consumers in terms of the recession because it’s good value. It also fits with our transient lifestyle where people don’t have the time to spare to enjoy a fine dining experience.”
