The word “limited” prevails in on-the-rise concepts: limited service, limited square feet and limited on-premises dining.

Even amidst ongoing complaints of rising costs and labor issues, new restaurant and foodservice concepts continue to come online while existing ones look for ways to grow and evolve. “The optimism in the industry is strong right now,” says Darren Tristano, CEO and founder of market research and consulting firm Foodservice Results. He defines emerging concepts as those with successfully operating existing locations and breaking ground on additional ones.

“In order to be a concept, we would say you have to have at least two restaurants and be currently developing the third location,” says Tristano. “Once you have more than nine locations, then we would consider the concept a chain, whether that was in one market or multiple. Part of that progression typically includes the development of prototypes designed for expansion or franchising and standard operating manuals.”

What Tristano sees today in terms of emerging concepts and chains is a plan in place for expansion from the get-go. “Where we have seen the most growth over the last decade and after COVID has been within the limited-service segment. Smaller platforms are really growing because you have lower rent and labor costs. Where we used to see 2,000- and 2,500-square-foot locations, now there’s a shift to 500-square-feet or less with less interior dining and more takeout.”

On the smaller scale front, Tristano notes “beverage chains are doing well, including coffee houses built for convenience that are popping up in smaller spaces that don’t require huge leases.”

Case in point: Datassential’s “2024 Top 500 Restaurant Chain Report” identified several fast-growing coffee, tea and beverage concepts, including Foxtail Coffee Co., which had a 176.2% unit growth in 2023, followed by Just Love Coffee Café (140.5%), Cupbop (134.8%), and Swig (130.4%). Los Angeles-based Café 86, a dessert and coffee franchise, will add nine locations this year after a decade of success as a single-location operator.

Chicken concepts also continue to remain strong, Tristano says. “Chicken continues to be a strong segment — it’s a little less expensive [operationally] and inherently healthier,” Tristano adds. “Sandwich shops have somewhat capped out because there’s just so many of them, and I’m seeing Mexican shifting to more taco shops and a growing interest in Greek, Mediterranean and Asian concepts.”

In terms of limited-service restaurant [LSR] sales growth, according to Datassential’s report, LSR salad and healthful concepts had the most growth in the last year at 17%, followed by LSR chicken (11.9%); LSR dessert/snack (10.1%); LSR coffee (9.8%); LSR other (9.3%); and LSR Mexican (9.1%). After that, the gap widens to the next categories of LSR sandwich, pizza, steak and seafood concepts.

Korean BBQ continues to reign in popularity, evident by Datassential’s listing of KPOT Korean BBQ & Hot Pot as a top contender in the emerging concept space. And then there’s Gen Korean BBQ, that has plans to double in size by the end of June 2026 since going public in June 2023, according to published reports.

Pizza Growth

Pandemic-proof pizza concepts show no signs of slowing down. Even though the category is trailing others in terms of Datassential-reported sales growth, pizza concepts by unit growth ranked second only to American concepts, with an average of 70 units added to the domestic market last year compared to the leader at 88. Desserts and snacks remain close behind at 69 units — with a wider gap to sandwich, coffee, burger, Mexican, salad/healthy, Southern, Asian, BBQ, steakhouse, Italian, seafood and Greek/Mediterranean.

After expanding from 1 to 10 stores, Antioch Pizza Shop now plans to open 30 locations by 2026.After 47 years in business, Illinois-based Antioch Pizza Shop launched a new franchise expansion plan to begin in the Midwest and east of the Mississippi. The popular pizzeria, founded in 1977, has grown under the ownership of husband-and-wife duo Art and Karen Wicklein, who bought the existing brand in 2008. They’ve now expanded from 1 location to 10 and are targeting multiunit operators across several states, including Florida, Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Missouri, Tennessee and Wisconsin. Antioch Pizza Shop plans to have more than 30 locations open or in development by 2026.

“Just in 2023, we opened six more brick-and-mortar locations and launched three food trucks,” says Art Wicklein. “We went from an organic, haphazard growth strategy to trying to put real strategy and growth behind the brand.”

The Wickleins enlisted a legal firm, franchising consultancy and sales and marketing firm to help streamline operations and finances and put together training manuals and a brand book. While the largest store spans 3,600 square feet, newer, express locations will span just 750 to 1,200 square feet in an effort to reduce rent and overhead costs — along the lines of what Tristano mentioned.

“For our ‘Generation 2’ equipment package, we’re transitioning from gas to more electric deck ovens and oil-based fryers to air fryers with the reasoning that we want to go to market in areas where natural gas is limited or at a premium,” Wicklein says. “We see the electrification trend, and we don’t want to be blind to that as we continue to grow.”

Healthy Eats

With limited-service concepts focused on salads and healthy menus going strong, it’s no surprise that the number and type of bowl and veggie-centric concepts continue to grow. Take
The Original Chop Shop, for example. Though the name may signal a steakhouse concept, the 22-unit, Arizona-based chain features a menu consisting primarily of chopped salads and veggie bowls with various protein offerings.

“We’re a better-for-you fast-casual, order at the counter with food brought to the table concept that originated in 2013 in Scottsdale,” says Jason Morgan, CEO. “We offer various bases, from brown rice to sweet potato hash, quinoa, greens or roasted vegetables and protein toppings that include chicken, shrimp, steak and tofu. Our best seller is our chicken teriyaki bowl, followed by our Korean steak bowl. We also have breakfast offerings, from eggs to wraps, burritos and avocado toast.”

Just this year, the chain signed 7 leases for stores that will open within the next 18 months — 4 are planned for this year in Arizona, Texas and Georgia. Next year, the chain plans to open a location on the Texas A&M campus and in Phoenix.

Part of the expansion plans include a new design prototype rollout, one featuring technology upgrades and a new serving line setup.

“We took all the things we liked about the brand and rolled that into what will be the first ground-up development in Tucson,” Morgan says. Gone is the walk-the-line ordering style that is the hallmark of many fast-casual chains like Chipotle; in are self-ordering kiosks with customizable options, a pickup window for takeout orders, a larger patio seating 25 people and some expanded interior seating to about 50 seats.

“Our business today is about 75% off-premises, including online pickup ordering, in-store kiosk orders and third-party delivery,” Morgan says. The semi-closed, back-of-the-house kitchen space features an equipment package just shy of $300,000, he says, that includes double-stacked convection ovens, a chargrill and flattops, as well as expanded prep space for chopping veggies in house and for making fresh juices, acai bowls and parfaits.

WOWorks is another company expanding in the healthful category. “We’re a platform company with a family of better-for-you brands that started in December 2020,” says Kelly Roddy, CEO. “When we buy brands, they typically have their own IT, accounting and supplier systems and contracts but we look to streamline everything and leverage shared resources.”

One of the six brands in the portfolio, Z!Eats was recently rebranded. The former Zoup! concept was converted to include sandwiches and flatbreads, grain bowls and salads, complemented by soup flights dubbed shooters.

The rebrand included redesign with — similar to Original Chop Shop — a move away from the walk-the-line model to more self-ordering through in-store kiosks. At the back of the house, there have been added investments in electric and ventless equipment, including combi ovens, rapid-cook ovens, and expanded refrigerated prep tables for sandwich and salad making. “We’re testing and building new stores and plan to convert the rest of the 50 or so stores to feature the new branding and design this year,” Morgan says.

Dessert concept JARS features mini desserts and sweets in a takeaway format. Poised for expansion, the concept’s prototype runs between 750 and 1,000 square feet and requires a minimal equipment package.

The Sweet Side

In the desserts and snacks category, celebrity chef Fabio Viviani recently launched a dessert concept called JARS, featuring mini desserts and sweets in takeaway format. With a design prototype of just 750 to 1,000 square feet, and a minimal equipment package that does not require a full kitchen buildout or even a dishwasher, the single-serve dessert franchise is poised for growth and expansion, with its low cost of entry and ease of operation. JARS also cuts down on the need for major labor investments and staff training; the desserts can be assembled in minutes in the store by one to two people with frequent rotations and large-batch storage, making the catering component an asset rather than a chore.

“Our mission is to move beyond the traditional pink-box desserts — cookies, cupcakes and the like — into a new era of desserts that fit the modern lifestyle,” Viviani says. “While our classic JARS remain beloved, we constantly rotate seasonal flavors, while seeking new culinary trends to explore and reinvent.”

The first location opened in Chicago’s West Loop neighborhood in February 2023, followed by openings in Laguna Niguel, Calif., and locations in Dallas and Fort Worth, Texas. In addition, there are 100 locations in development across the U.S. and internationally.

Also on the sweets side, Laurie’s Pie Bar has been preparing for expansion in recent months. Open since 2016 in Long Beach, Calif., the concept this spring announced a new franchise program to expand nationwide beginning in Nevada, Arizona and Texas. The new franchises will offer handmade pies in classic, original and seasonal flavors, as well as smaller-format desserts called Cutie Pies in mason jars and Pie Shots in shot glasses, along with ice cream, coffee, beer and wine.

“After eight years of crafting delicious, fresh pies, we’re now looking to grow and seek motivated professionals to join our program,” Laurie Gray, founder of Laurie’s Pie Bar, said in a news release. Franchisees receive extensive training, marketing, operational support and exclusive territories.

With so many rebrands and refreshes, new concept developments and franchise plans in the works, the fast-casual and limited-service side of the restaurant industry continues to demonstrate positive growth poised to help foster some much-needed optimism for foodservice in general. 

Dessert concept JARS features mini desserts and sweets in a takeaway format. Poised for expansion, the concept’s prototype runs between 750 and 1,000 square feet and requires a minimal equipment package.

6 Newer Chains Achieving Rapid Growth

Upward mobility on the chain front continues. Looking beyond the usual suspects in terms of systemwide sales (McDonald’s, Starbucks, Chick-fil-A), here are six newer chains with rapid unit growth from 2022-2023 according to Datassential’s “2024 Top 500 Restaurant Chain Report”.

1. 7 Brew A drive-thru coffee chain serving up premium coffee with a dose of kindness. Unit growth up 373.7%. 
2. The Peach Cobbler Factory Indulgent dessert menu that ranges from cobblers to cookies to shakes and more. Unit growth up 358.3%.
3. Hangry Joe’s Hot Chicken Offerings are 100% chicken-centric: sandwiches, wings, nuggets, fingers and wraps, all with a range of spice levels. Unit growth up 281.8%.
4. KPOT Korean BBQ & Hot Pot Billed as a hands-on, all-you-can-eat experience that merges traditional Asian hot pot with Korean BBQ flavors. Unit growth up 275%.
5. The Great Greek Mediterranean Grill A contemporary take on timeless Mediterranean cuisine. Unit growth up 130%.
6. Nautical Bowls Superfood bowl concept focused on plant-based, gluten, soy and dairy-free items. Unit growth up 125%.

5 Emerging Concept Leaders

Based on one-year sales growth, Datassential’s “2024 Top 500 Restaurant Chain Report” included five chains that had more than 200% sales growth from 2022-2023.

1. Hangry Joe’s Hot Chicken The next wave of Nashville hot chicken, this chain notes it’s their secret sauce that elevates things. One-year sales growth: 332.5%.
2. Nick the Greek Dishes are Greek street food-inspired, served in a fast-casual environment. One-year sales growth: 304.7%.
3. 7 Brew Unique menu items include a German Chocolate (coconut & caramel mocha) coffee beverage and the chain’s energy drink, 7 Energy. One-year sales growth: 267.3%.
4. Pizza King Inc. An Indiana-dominant traditional, family-friendly pizza restaurant with dine-in and carryout options; new owners as of 2020. One-year sales growth: 264.7%.
5. Cupbop Korean barbecue in a cup with an intentionally limited menu and offering a modern take on Korean cuisine. One-year sales growth: 207.2%.