Trends

Keeping the foodservice equipment marketplace up to date with the latest menu and concept trends.

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The Shifting Fast-Food Landscape

As the lines between fast food and fast casual blur, emerging quick-service restaurants carve out more space for themselves. 

The U.S. remains the world leader in terms of fast-food chains. 

That’s because U.S. companies account for 32.7% of the global fast-food market, according to IBIS World. As of 2023, there were 204,555 fast food restaurants throughout the U.S., an increase of 3.49% since 2021, according to IBIS World. That accounts for the emergence of nearly 24,000 new fast-food restaurant locations in just a few years. 

The outlook for the fast-food segment calls for continued growth. Datassential projects modest but steady real growth of 1% in 2025, supported by stabilized inflation and a robust labor market. Meanwhile, the global fast-food market is expected to grow at a compound annual growth rate of 6.05%, reaching $1.47 trillion by 2028, according to a November 2024 report published by Fortune Business Insights. 

But what really is considered “fast food?” How “fast” does the food have to be to be considered “fast food?”

“The line between fast food and fast casual isn’t as clear as it used to be,” says Jay Bandy, president of Goliath Consulting, a restaurant and foodservice consultancy. “Traditionally, QSRs [quick-service restaurants] focus on drive-thru, with meals prepared in three minutes or less. Fast casual, on the other hand, involves more customization and a five-to-seven-minute prep time.”

Lee’s Famous Recipe Chicken updated its prototype to a 2,400-sqaure-foot version with seating for up to 56 guests.Lee’s Famous Recipe Chicken updated its prototype to a 2,400-sqaure-foot version with seating for up to 56 guests.

Drive-Thru Innovations 

Drive-thru remains the cornerstone of fast-food operations, with continued investment in this area. “Drive-thru technology is where we’re seeing the biggest investments,” Bandy says. He points to AI-powered systems as a route to improving efficiency, accuracy, and even building order size. “These tools are becoming essential for operators looking to stay competitive.”

Case in point: fast-food giant Wendy’s has partnered with a cloud-based platform to launch Wendy’s FreshAI, a generative AI platform that improves order accuracy and speed, reducing service times by an average of 22 seconds in early tests. 

Taco Bell plans to expand AI-powered ordering to hundreds of U.S. locations to enhance efficiency, accuracy, and presumably, profits. Meanwhile, McDonald’s continues to showcase its dual drive-thru lanes and AI-based ordering technology acquired through its purchase of voice-tech firm Apprente. 

Chipotle Mexican Grill, still a powerhouse in the fast-casual sector, has attempted to rival fast-food drive-thrus with its “Chipotlanes,” which enable customers to order and pay in advance via an app for seamless pickup without leaving their car. The company reported a sales boost of 10% to 15% in participating locations as a result of these new lanes. In fact, late last year Chipotle opened its 1,000th Chipotlane. The fast-casual chain plans to open 315 to 345 new restaurants in 2025 with at least 80% featuring a Chipotlane.

Chicken Winners 

Chicken-focused fast-food chains are experiencing rapid growth, bringing some competition to the bigger players like Chick-fil-A.

“Chicken chains are booming right now,” Bandy says, noting that these concepts are offering up some potential competition for chicken giant Chick-fil-A as they continue to expand nationwide.

Take Dave’s Hot Chicken, for starters. Known for its Nashville-style hot chicken tenders and sliders, the chain, which self-identifies as fast-casual but offers drive-thru in select locations, has expanded to more than 200 U.S. locations and opened its first store in London on Dec. 7, 2024. Another chicken tender fast-casual brand with a fast-food-esque drive-thru model in growth mode is Huey Magoo’s, which markets itself as the “Filet Mignon of Chicken.” The chain operates 70 locations and has an additional 29 stores will open in Texas, Arizona and Virginia. A total of 250 restaurants are in development, per a release from the chain. 

And then there’s Lee’s Famous Recipe Chicken, another self-identified fast-casual chain, which recently updated its prototype design to include drive-thru improvements and a 2,400-square-foot standard layout with 56 seats. “For the back of house, we hired an industrial engineering consultant to analyze employees’ actions in order to maximize efficiency in the kitchen,” says Ryan Weaver, CEO of Lee’s Famous Recipe Chicken. “The new design streamlines operations for both franchisees and the brand because we’re optimizing our processes and trying to make it seamless for the franchisees, staff, and customers.”

Key updates include dual drive-thru lanes and an online ordering pickup area to accommodate off-premises sales, which account for 70% to 80% of the chain’s revenue. “The dual drive-thru made sense for our new restaurant. We wanted to make the customer experience seamless and quick, which the dual drive-thru helps with,” Weaver says. “The online ordering pickup area on the interior also allows customers to have a quick and easy experience where they can order at their own convenience and come and pick it up when it’s ready without having to wait.”

Like the other concepts referenced above, technology, specifically AI, is a big part of Lee’s new design and drive to be more efficient. “On the tech side, we’re implementing AI voice order taking at the drive-thru, which leads to a more consistent customer experience and a more efficient labor model,” Weaver says. “The AI order taking at the drive-thru is really a huge efficiency driver for us. We’ve proven we can remove about five to six labor hours per unit per day. Using AI has not only helped with order accuracy but has also proven to grow topline due to the consistency of upselling.”

The first remodeled Lee’s Famous Recipe Chicken location opened in Macomb, Mich., in a location that previously housed a chicken-focused concept. “The new design elements are able to be retrofitted into existing restaurants, which is a big win because a lot of our existing asset base needs some modernization,” Weaver says. “We are a legacy brand, and we embrace that, but that doesn’t mean we can’t be more modern at the same time.”

Value meals like the ones seen here from Wendy’s (top) and McDonald’s, remain important tools for quick-service restaurants looking to drive customer foot traffic.Value meals like the ones seen here from Wendy’s (top) and McDonald’s, remain important tools for quick-service restaurants looking to drive customer foot traffic.

Value Matters

When it comes to fast-food, performance, value and convenience will remain the cornerstones of success. And despite operators across all segments continuing to innovate and invest in both areas throughout the year, 2024 was “a mixed bag for the restaurant industry,” Bandy says. “Casual dining had a rough year, fast casual was somewhere in the middle, but QSRs managed to hold steady.”

Mintel’s 2024 U.S. Fast Casual Restaurants Report showed fast-casual establishments outpaced overall industry growth, with spending up 9%, driven by demand for healthier and customizable options. 

Fast food remains deeply embedded in many consumers’ routines, with heavy users visiting fast-food restaurants five times per week, Bandy notes. Published reports have indicated that 15.8% of U.S. adults eat fast food 4 to 6 times per week. 

To keep those customers coming back and to invite others to join them, many fast-food chains continue to emphasize the value they bring to the table — or the drive-thru — namely in the form of value meals, which usually take the form of a sandwich, fries and a drink. Last fall, McDonald’s said it plans to continue its $5 Meal Deal with a new wrinkle where customers who buy one full-priced menu item from the McValue menu can add one more item of their choice for $1. Another notable aspect of this promotion is the fact that McDonald’s seemingly has the buy-in of its franchisees and that’s not always the case when a chain rolls out a value meal. 

Some chains are even including premium options as part of their value meals. “This two-tiered pricing works because it gives consumers a choice: perceived value on one hand, and a little indulgence on the other,” Bandy adds.

And don’t expect operators’ emphasis on value and convenience to shift any time soon. “There’s still a big gap between food-away-from-home and grocery prices,” Bandy pointed out. “It’s cheaper to eat at home, and that impacts both QSRs and casual dining. Operators have to keep finding ways to offer value and convenience to keep customers coming back.” 

Wing Snob caters to different dietary preferences by offering boneless wings and vegetarian-friendly options like cauliflower wings.Wing Snob caters to different dietary preferences by offering boneless wings and vegetarian-friendly options like cauliflower wings.

Emerging Fast-Food Chains to Watch 

While legacy brands like McDonald’s and Wendy’s dominate the fast-food landscape, emerging chains are setting new benchmarks for growth and innovation. Check out these fast-growing fast-food chains to watch. 

Wing Snob: Since its founding in 2017 in Livonia, Mich., Wing Snob has grown steadily with its blended dine-in, takeout and delivery model and menu that caters to different dietary preferences by offering boneless wings and vegetarian-friendly options like cauliflower wings. The chain, as of December 2024, operates 70 locations throughout Illinois, Michigan and Ohio, and announced plans to break ground in Florida later this month. The company recently announced plans to open more than 100 new locations by 2025, targeting other new markets in Wisconsin, Kentucky and Canada. 

Konala: This chain, founded in 2023 in Post Falls, Idaho, focuses on “healthier” fast food with a protein-forward, gluten-free, fryer-free, customizable bowl-based menu in a drive-thru-focused concept. The chain uses rapid-cook ovens — in place of fryers, grills and flattops — with most menu items prepared in less than three minutes. In September 2024, the brand reported ambitious plans to expand to 1,000 locations over the next 10 years through a new franchise offering. 

Salad and Go: This tech-forward fast-food salad chain with a drive-thru model was established in 2013 in Gilbert, Ariz. Since 2002, under new leadership, the chain has expanded rapidly, with 135 stores across Arizona, Texas, Oklahoma, and Nevada by the end of 2023 and plans to open one new store per week. For maximum efficiency, the chain sources ingredients directly from local farmers and suppliers, operates its own food production facilities, and operates out of 750-square-foot stores. Each location features a drive-thru lane and a pickup window for orders placed online or through the Salad and Go mobile app. 

Smalls Sliders Cheeseburger Fry & Shake: Founded in 2019 in Baton Rouge, La., by NFL star Drew Brees and veteran restaurant executives, this rapidly expanding quick-service chain specializes in made-to-order cheeseburger sliders. The chain’s stores operate out of modular container units referred to by the company as “Cans,” allowing for efficient construction, scalability and swift expansion into new markets. As of August 2024, Smalls Sliders has over 290 locations either operational or in development across states including Louisiana, Mississippi, Florida, and Texas, with plans to enter Colorado, Arizona, and Kansas.  

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