The US restaurant industry has had a rough start to 2024. Sales and footfall are sliding as customers pull back their spending. Price increases can no longer be relied on to pick up the slack. Starbucks and KFC owner Yum Brands is among the big chains that reported a drop in same-store sales in their most recent quarter. At McDonald’s, growth on the same metric has fallen for four straight quarters.
Yet there has been one bright spot: “fast-casual” chains. These pitch themselves as a healthier option, or cater to a slightly better-off customer than their fast-food rivals.
This focus has helped salad purveyor Sweetgreen, burrito hawker Chipotle and burger slinger Shake Shack to buck the wider gloom to report higher like-for-like sales last quarter.