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Fast-casual Dining Market in Europe - Industry Outlook and Forecast 2019-2024

SKU : ARZ190506
  • Published on : May 2019

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The research report on the Europe fast-casual dining market covers market sizing and forecast, market share, industry trends, growth drivers, and vendor analysis. The study includes insights on segmentation by daypart (lunch, dinner, breakfast, and snacks), channel (on-premise and off-premise), format (independents and chains), and geography (Germany, UK, France, Spain, Italy, and Rest of Europe).

Europe Fast-casual Dining Market - Overview

Fast-casual dining is a fusion of fast food and casual dining. A menu board, which constitutes dishes that are made with better quality ingredients, is a significant part of this model. 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.  With opportunities abound, chains and start-ups are cleaning up menus, adjusting recipe configurations, enabling personalized-everything, and crafting flexible menu, thereby evolving the concept of fast-casual dining restaurants.  At the core of fast-casual dining is a value proposition – a value delivered not only in terms of price but also in other areas such as first-rate décor and perception of freshness among other qualities. Further, the intersection of digital technology and food is taking place at a monumental space. Therefore, the business implications of using digital technology are enormous. A lot of the growth and innovation is being fueled in the market by small and regional chains similar to the relationship between Instagram generation and strong marketing of small brands. This has shifted expectations around restaurant designs, ingredient sourcing, services, and food.

The supply chain is expected to include hydroponics, urban farming, and aquaponics. In fast casual 2.0, strategies of growth are tempered, with profits and outlet expansion coming second in terms of ambition as goals such as investment in vendors and suppliers and community development become priorities.

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.  The Europe fast-casual dining market is likely to reach revenues of around $17 billion by 2024, growing at a CAGR of approximately 6% during 2018–2024.

Europe Fast-casual Dining Market: Dynamics

Digital advancements are bolstering the franchise development model

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 franchisors to monitor everything in real-time. With established operators such as Vapiano having successfully expanded via the franchise model, other players are looking to get on board. As the competition gets intense, others are doing it seeing as they already have simple management systems and processes that ensure the quality does not go for a toss. Players are re-configuring their business model to suit franchising. They are ensuring consistency by developing supplier relationships to de-skilling operations and creating systems that can flex and keep up with a wide variety of spaces.

Europe Fast-casual Dining Market - Segmentation

The market research report includes a detailed segmentation of the market by daypart, channel, format, and geography.

Europe Fast-casual Dining Market by Daypart

Most casual restaurants are trying to leverage upon healthy food, combo options, and competitive pricing

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. Vendors are trying to drive up the brand value by improving the quality of services and food. For instance, Frankie & Benny launched a campaign in 2018 wherein it prompted parents to have a smartphone-free meal with their children, which if successful would make them eligible for a free kid’s meal.

Breakfast is growing at a slower rate than lunch and dinner segments. This segment mostly serves ready to eat food at competitive prices. Vendors are trying to miniaturize breakfast mainstays such as quiches and muffins. For instance, Wagamama trialed a new breakfast menu in 2019 at its flagship store in London, introduced vegan menu, which included maple 'bacon' made with seitan, a meat substitute made from gluten, and seitan and beetroot sausages, which were used in place of pork.

Snacks have a huge spectrum, which includes foodstuff ranging from appetizers, beverages, and bakery stuff. As with other dayparts, vendors are offering snack options that fall under a certain margin of calories to appeal to health-conscious consumers. Further, almost three-fourths of consumers that consume snack state that they do it because of the physical drive – get better nutrition, curb hunger, replace lunch, and gain energy.

Europe Fast-casual Dining Market by Channel

Vendors are working on timely deliveries, getting feedbacks, and adding new food formats to boost the off-site market.

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.

Off-premise dining is impacted by the advent of flat screens. It has changed dining habits to a significant degree. The off-premise dining has facilitated vendors to talk to a whole new customer segment and know their preferences and include them in their menu. Vendors are also working on offering timely deliveries, collecting feedbacks, and adding new food formats, which are expected to boost the off-site Europe fast-casual dining market.

Europe Fast-casual Dining Market by Format

The entry of established brands is encouraging the growth of the Europe fast-casual dining market

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.

The chain segment is going at a steady rate. Chains have revamped menus and enhanced the décor to attract more customers. Further, the lucrativeness of the fast-casual concept has witnessed a lot of casual dining players entering the market as well. For instance, PizzaExpress undertook a brand refresh and developed ZA in 2019, which offers fresh slices of pizza along with an all-day dining and breakfast offering. Hence, the entry of established brands is encouraging the growth of the Europe fast-casual dining market.

 Europe Fast-casual Dining Market by Geography

Germany dominated the market in 2018 and is expected to grow at a CAGR of around 6% during the forecast period

The Europe fast-casual dining market by geography is segmented into Germany, UK, France, Spain, Italy, and Rest of Europe. Germany has dominated the market and is expected to grow at a CAGR of around 6% during the forecast period. Fast-casual players are fueling the growth by expanding in areas of transit. The rise of Germany as a favorite destination for multiple fast-food joints is fueling the Europe fast-casual dining market.

The market in UK has created a conducive environment. Food diversity and the evolving high-street landscape have paved the path for the Europe fast-casual dining market growth. The UK casual-dining market has many restaurants that offer vegetarian and vegan diets, low-calorie options, and allergen-aware dishes.

France, Spain, Italy, and Rest of Europe are also witnessing a surge in casual-dining. Growing economies, improving food habits, increasing disposable incomes and changing lifestyle are driving the fast-casual dining market in these regions.

Key Countries Profiled:

  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Rest of Europe

Key Vendor Analysis

The fast-casual dining market in Europe has moderate concentration of leading players. It is dominated by both regional chains and small single-location establishments. The market is focusing on quality, brand value, customer services, and consistency. Vendors are introducing new concepts to gain customers such as offering dining on rooftops, introducing make-your-own dishes, creating innovative kitchens among others. The combination of such new concepts and technological advancements is expected to drive the fast-casual dining market in Europe.

Leading Vendors

  • JAB Holdings
  • Nando’s
  • Pizza Hut
  • The Restaurant Group

Other prominent vendors are 100 Montaditos, Chipotle Mexican Grill, Five Guys, Francesca, Gourmet Burger Kitchen, Itsu, Leon, Marché Mövenpick, Mezzo di Pasta, PAUL, Smashburger, Shake Shack, Tossed, Tortilla Mexican Grill, Vapiano, vonAllwörden, Patisserie Valerie, and Sushi Daily.

Key Market Insights

  • Offers market sizing and growth prospects of the Europe fast-casual dining market for the forecast period 2019–2024
  • Provides comprehensive insights on the latest industry trends, market forecast, and growth drivers in the Europe fast-casual dining market
  • Includes a detailed analysis of market growth drivers, challenges, and investment opportunities
  • Delivers a complete overview of market segments and the regional outlook Europe fast-casual dining market
  • Offers an exhaustive summary of the vendor landscape, competitive analysis, and key market strategies to gain a competitive advantage in the Europe fast-casual dining market

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