As consumers, we love the fast casual market, we almost have to. Every strip mall you go to, every new development in town and every modernization of a dying section of the city has at least one, maybe two, probably three fast casual restaurants to choose from. The decisions we have to make on a day-to-day basis are already fairly tough, and the addition of deciding between Panera, Chipotle or Panda Express seems like a chore, nearly impossible until someone decrees a destination.

As an industry, when do we get to a point, where we decide there is no need for another fast casual restaurant? Or is attempting the next biggest thing, part of the excitement? These, and other questions are worth ruminating as we approach a crowded marketplace. Let’s breakdown the segment and have a look at what questions we need to be asking. According to Darren Tristano, of Technomic, the FC segment accounts for nearly $22 billion in sales. There are 344 FC chains that Technomic tracks, saying they believe that 95 percent of the FC market are chains. Of those, the top 5 (Panera, Chipotle, Panda Express, Zaxby’s and Five Guys) make up 40 percent, or $7.56 billion of the sales in the top 100. Of the top 50 restaurants across all segments, six are FC, adding Jimmy Johns to the list above. So how does one penetrate a market that is already saturated with big name players, and others that are quickly rising?

Is it worth finding a new niche?  Technomic reclassifies the FC segment into nine sub-segments (in order of sales, with number of concepts indicated in the top 100): Mexican (20), Bakery/Café (18), Other Sandwich (16), Hamburger (11), Chicken (nine), Pizza (seven), Asian/Noodle (six), Salad (four), and Specialty (nine). Specialty, or other, makes up 9 percent of the top 100. Are these the future movers and shakers? One of those is Dickey’s Barbecue Pit. Not only are they No. 26 on Technomic’s Top FC restaurants, but they are one of two BBQ concepts (the other being Shane’s Rib Shack, No. 67) on the list. Is it that BBQ is the next cuisine to flood the market with its delicious, smoky, and saucy take on the FC world?

What about No. 30 on the list: Fazoli‘s. Fazoli’s has been around for 25 years, so obviously not a new concept, however, being the only Italian concept on the list has to say something, right? BBQ and Italian have been an American staple for years, so do they have what it takes to launch a new sub-segment? Or is it some other type of cuisine all together? Coming in at No. 72 is Daphne’s California Greek, which has been around since 1991, so again not quite a brand new concept. However, it is the only Greek restaurant on the list, and how many cities have Greek eateries? Some, but compared to Italian or BBQ options, not enough! Is Daphne’s California Greek the next FC cuisine to abound in the market? Can it compete with the other giants?

Is it offering a different message? Do we need another burger joint that claims something new and exciting in how they prepare or serve their food? There are 11 such places on the Top 100 list that are trying to do just that. They all serve burgers and fries, so how does each capture their customer’s dollar? Maybe the 20 Mexican concepts have it figured out by re-inventing how we look at Mexican food, or attempting a more authentic take on their offering. As the category king on the Top 100, would you expect the same thing from each? Of those 20 concepts, seven have the word “Grill” somewhere in their name. Are they each adding their own flair to help differentiate themselves? Perhaps, having 20 different types of Mexican FC concepts is what Americans crave. ShopHouse Southeast Asian Kitchen tries to immerse their customers by having a Coca-Cola machine, still identifiable by its colors and design, that’s written in Thai. Opinions change, so maybe offering more cage-free, antibiotic-free, free-range or locally sourced/produced items than what your competitor offers means you’ll succeed. It must be the recycled tray, or the 100-percent post-consumer recycled packaging. Energy efficient lighting? Environmentally friendly chemicals? The list goes on and on as to what makes each unique. Is it the message or the delivery of the message that offers a leg up?

Is it differentiation in product offerings? According to Mintel Menu Insights, “premium” menu mentions has risen from 69 in 2007 to 138 in 2012. So does literally adding “premium” in front of your offerings mean you’ll become one of the top 20 FC restaurants in 2020? Panera, the No. 1 FC chain on the list does just that and more. Not only do they have a line of “Premium Signature” sandwiches, (meaning better ingredients, better for you) but they offer antibiotic-free chicken and roasted turkey; not just regular bacon, but Applewood-smoked; and of course reduced-fat olive oil mayo. Is it just their food? Or does “Live Consciously, Eat Deliciously” affect their whole brand? In a new commercial, Panera talks about starting each day with baking fresh bread, talking to their farmers and chefs and delivering food that’s trustworthy and as delicious as their bread. Should they end there? At the end of the day, donate all the leftovers to help communities? Of course, and to think “All this started with a humble loaf of bread.” Is this what drove Panera to the top spot?

Perhaps American’s want something new and exciting like Daphne’s California Greek. Or, is it they want a concept that gives them something different and out-of-the-ordinary? Perhaps they choose to patronize places that are socially conscience in their dealings. Unfortunately, there doesn’t seem to be a clear answer, and new players entering the FC segment need to decide for themselves what they can do better, faster or more exciting. What we do know can be adapted from Howard Moskowitz, “There is no perfect FC restaurant, only perfect FC restaurants.”

Daniel Campbell is a culinary innovator on the Food IQ culinary team. His experience in the restaurant industry, passion for local food sourcing, and knack for experimentation in the kitchen, give Food IQ clients an advantage in the development of unique menu ideas.

http://www.fastcasual.com/article/210697/Is-the-fast-casual-market-saturated-or-still-absorbing

By Emily Tod, Food IQ

The right to choose has made its way into the foodservice industry, giving customers the reigns as to what makes up their meals. The everyday Joe puts on his chef hat as he approaches the counter to create an offering just the way he likes it. With endless possibilities, are customers really taking advantage of this freedom? Or are they such creatures of habit that they keep missing out on the most amazing burrito or burger they’ve ever tasted?
As we allow the customer to make it their way, we lose the opportunity to introduce them to something new. And perhaps more importantly, memorable. Giving them full control of the order puts them in a position to default to the familiar. If a guest orders their “usual” every time they walk through the door, they may miss out on truly experiencing the flavor and cuisine on which the restaurant was founded. They may also eventually get bored and visit less frequently.
Perhaps operators need to give customers a little push in the right direction – or maybe just a different direction. Naturally, fast casual operations must stay true to the original customizable concept, but it’s time to take the consumer out of their comfort zone. So how do we lead them into taking the leap?
Feature combinations. Creating a limited time offer, daily special, or menu item of the month is ever-popular throughout other restaurant segments. In fast-casual, everyday ingredients can be used to create a unique featured item patrons may recreate in the future. Alternatively, these items might simply give guests a place to start.
Subway, for example, is always featuring multiple menu items. Whether these are everyday items or special limited time offers, putting them on the menu gives patrons a discernible starting point. Without a large poster depicting melted Monterrey cheddar cheese and crisp veggies on top of fresh chicken and bacon, the customer might just stick with their typical turkey, lettuce and tomato. Other fast-casual concepts can easily take this idea and make it their own, applying it to main dishes from pizza to burritos to bowls.
Educate employees. The typical fast casual employee doesn’t have much classic culinary training. In order for employees to gain true understanding, they should taste all menu offerings and learn how to talk to customers about flavors and ingredients.
The Sales & Marketing Team at Vanee Foods Company suggests monthly meetings. “You have to teach [employees] and keep them familiar with any changes or additions to the menu. One way to do this is by having mandatory monthly menu tastings…they’ll not only be able to offer honest personal recommendations, but they’ll have a general sense of what everything on the menu looks like, tastes like, and what it’s made out of.” This encourages greater interaction with the customer and prepares the employee for questions. The more knowledgeable an employee is, the more likely a customer will take their recommendations on an order.
Give them a clue. Chances are, the average customer’s knowledge of flavor pairings is minimal. And who better to know the best combinations at a chain or independent operation than the chefs? A simple “suggestions” section on the menu board, poster, or handout could inspire a customer to try something new. Show them the simple equation of flavors and ingredients that go well together.
The fast-growing sandwich chain, Which Wich, is already doing this. While guests can create their own sandwich, Which Wich uses in-store communication to suggest flavorful combinations such as buffalo chicken and avocado. Qdoba offers seasonal suggestions. Currently, it recommends its basic salad topped with seasonal mango salsa and cilantro lime dressing. If a customer takes the advice, these small recommendations can mean the difference between an okay experience and one that wows.
Pushing guests to experience the full extent of the menu is critical to long-term success. Fast-casual restaurants are no longer competing against others of their own kind. They’re competing against every single foodservice operation from gas station roller grills to casual dine locations.
When a customer orders the same meal every time they step into a restaurant, the risk of boredom, and finding another place to eat, runs high. Suggest a few flavorful combinations, and the chance of obtaining repeat business grows exponentially. Because when they’re returning not because of the familiar and comfortable, rather because they can experience something new and exciting with each visit, the result is a happier, more loyal customer—and a little larger slice of the market share.

Emily Tod is the Insights Project Coordinator at FoodIQ.

Italian, Cuban, Caribbean and New American cuisines get the spotlight.

The final day of MenuDirections focused on Italian, Cuban and Caribbean cuisine as well as new twists on American as a way to talk about bringing health on the menu. Chef Andrew Hunter, corporate chef for Kikkoman Sales USA Inc., spoke about the ubiquity of gastropubs in the commercial sector and what non-commercial operators could do to “gastrify” their menus by focusing on pub fare like burgers, fries and pizza but elevating them with quality ingredients. Chef Hunter served Korean friend chicken and macaroni and cheese made with wasabi cream sauce.

Other observations from the session:

• Gastropub ideas include making pizza in an oval shape to make it a little different. Drizzle fries with creamy Gorgonzola.

• Chef Hunter: Call anything a ketchup, from mango chutney to sriracha sauce, and it’ll sell.

In the regional Italian session, Chef Lorenzo Boni, executive chef for Barilla America Inc., discussed the differences in Italy’s cuisines by region. Some tips he offered included the difference between domestic and Italian fontina cheeses—cows are fed different diets—combine pasta and sauce and let it hang out to let the flavors mingle and when precooking pasta look at recommended cook time on package and cut it in half when you’re cooking in bulk and holding it for service.

Other observations from the session:

• Extra virgin olive oil is very volatile so keep some of what recipe specs for the end to drizzle over pasta. This will get more flavor and aroma.

• Cooking tips: Start with a cold skillet so you can sweat vegetables and infuse with olive oil. Brown meat then deglaze with wine. Make sure to reduce wine to almost nothing. Brown mushrooms well to maximize flavor. Cut cream with broth to decrease richness and heaviness in cream sauces.

The Cuban & Caribbean session highlighted the health benefits of beans in both cuisines. Chefs Jorge Cespedes, research and development chef, and Cari Price, corporate chef, both of FoodIQ, and Erik Henry, director of foodservice for Bush Brothers & Co., presented different recipes that utilized beans as harbingers of flavor. Attendees sampled dishes such as Moros y Cristianos (rice and beans from Cuba) and Layered Yuca & Mojo Pie.

The conference wrapped up with a final general session on menu trends by Mark DiDomenico, director of business development for Datassential, which is a company that tracks more than 100,000 menus. Observations from the session included:

• The menu adoption cycle has four phases: inception (usually happens at fine dining establishments and ethnic independent restaurants), adoption (fast casual and casual independent restaurants), proliferation (quick service and casual chains) and ubiquity (mid-scale restaurants and family dining). Inception and adoption are the sweet spots today.

• The Watch List for 2013 includes charcuterie, pickled foods, maple, smoked cheese, poutine, grits and craft ice cream.

• Chef-driven menus are now about chefs as artists instead of trying to please everyone. It’s become the opposite of customization. Customers must now trust the chef.

For inquiries, contact Mindy Armstrong at marmstrong@foodiq.net or Phil Daniels at pdaniels@marlinnetwork.com.

Check out the site to learn how you can get going: www.breakfastforward.com

For all consumers, health and safety are the biggest concern, therefore increasing the demand for the freshest, least processed foods at home and away from home. A great tasting dish simply isn’t good enough for today’s consumer. Mounting concerns regarding health, sustainability for future generations, and getting the most out of each food dollar has brought about higher expectations for pure and real ingredients. Exceptional quality and flavor of locally grown, fresh-picked produce and made-from-scratch goods also has  fueled the momentum and craving for true scratch cooking.

Read the full article at FastCasual.com.

Cari Price is the corporate development chef at Food IQ. The company’s goal is to help restaurant operators create food with impact. Food that starts with true insight into a concept’s business, its customers and its competition, and ideas with the culinary skill, experience and vision that help restaurant operators connect with their audience.

Of the chains on TECHNOMIC’s list, seven of 10 were fast-casual concepts which shouldn’t be a shock since that segment has not only survived the economic downturn, but flourished. The ability to offer consumers customizable items featuring high-quality ingredients at an affordable price is the hallmark of fast-casuals and has made us rethink the term “value”.

Among these top fast-causal chains, certain cuisine categories seem to rise to the top. Bakery-cafes once ruled this segment, but now Mexican, upscale burgers and Asian are leading the fast-casual craze. The foods featured at these restaurants are generally easy to produce with limited service, smaller and less-skilled crews. But as with all well-established brands, there are always up-and-comers vying for the spotlight. So who will take the lead in the Mexican, Asian and burger categories?

Read the full article at FastCasual.com.

FoodIQ Executive Chef Tom Smith lives the philosophy of “Before it’s a great dish, it’s a great idea,” partnering and guiding his clients to strategic culinary concepts, executions and ideations.

Then came the recession of 2007 and new stresses for the foodservice industry. Consumers now demanded more value for their dollar than ever before but still were not ready to sacrifice quality. These changes in the foodservice-segment landscape have created an interesting phenomenon: Operators in all segments are moving
toward an optimum value platform nestled between full-serve and quick-serve spectrums. Operators seeking this new value platform are “upscaling the downscale” — either on their existing menus or by opening new locations under the brand umbrella, both efforts showcasing more upscale culinary interpretations brought to life through downscale pantries.

At one end of the industry, casualization is a proven strategy in play. Leading high-end chefs are opening more-casual burger joints; others have gone mobile, utilizing food trucks to bring their culinary talents to a more mainstream audience while delivering maximum value. Noted Chicago chef Michael Kornick of upscale MK restaurant fame partnered with David Morton to open DMK Burger Bar and the new Fish Bar, which offers a “clam-shack” atmosphere with most meals under $10. Similarly, fellow Chicagoan Rick Bayless made news with the launch of the quick-serve Xoco, with a menu based on Mexico’s most beloved street foods, much more humble than Topolobompo’s offerings.

At the other end of the spectrum, the quick-service segment is making upscale strides to satisfy its customers’ demands for more value without surrendering their constant quest for flavor. From this perspective, efforts are reversed: Operators are upgrading existing ingredients and menu items to bring a heightened value  perception. Fast-casual operators showcase high-end ingredients while quick-serve flexes its culinary muscles by tapping into more premium-branding strategies for enhanced quality; some food trucks are even going brick and mortar.

Within this new value model, any operator can be your competition, and “battle lines” are drawn somewhere between the fast-casual and casual-dining segments. Quick-serve and fast casual operators are upping their flavor and quality game to add menu-item value — while still offering fast service at an affordable price point. Meanwhile, full-service operations are using their more-diverse pantries to give patrons more affordable options while still delivering on their individual brand promises.

Several base menu items are emerging as the culinary cornerstones of this new value model: Burgers, sandwiches, pasta, pizza and ice cream all represent opportunities for operators of all segments to add value and quality through upscaled or casualized tactics. These platforms offer the “menu elasticity” to reside on any menu, from QSR to fine dining, without confusing consumers. These items make customers feel comfortable with your menu and thus are the natural platform for upgrades through culinary experimentation and enhanced quality and value.

On all parts of the menu, the value platform model is all about adding value up and down the chain in commercial foodservice. For QSR and fast-casual operators, it involves taking culinary inspiration from casual and fine-dining segments and delivering it back to consumers within a limited-service format. For full-service segments, value means developing items to attract consumers with high culinary imagination but at a price point that lets them experience your “brand” at a more affordable overall cost.

Download the full article: The New Value Platform

Or read at flavor-online.com.

Chefs are some of the most progressive, creative star-worthy entrepreneurs our country has to offer. Many of them have begun to realize that they can just as easily express their passion and creativity through fast-casual concepts without compromising the extremely high standards that have made them successful. Top-notch chefs are now constructing new concepts with smaller footprints and less overhead, allowing them to develop new menus and dishes at smaller price points.

Read the full article at FastCasual.com.

FoodIQ Executive Chef Tom Smith lives the philosophy of “Before it’s a great dish, it’s a great idea,” partnering and guiding his clients to strategic culinary concepts, executions and ideations.

Knowing where one’s food comes from is a phenomenon known as transparency. And although this need-to-know reflects a refreshing consumer awareness, there’s more to the story. The demand to understand the sourcing and nutritional value of foodstuffs has reached all the way into the restaurant world.

For full article, visit FastCasual.com.

Mindy Armstrong is the Insights & Account Manager at FoodIQ.  Her background in branding, food marketing and menu innovation in the restaurant industry gives her clients a unique advantage in the development of insight-driven menu concepts.