Market Context
Between fast casual, QSR and convenience stores, the battle for the fast and easy meal mission is intense, at a critical time for securing longer-term, customer loyalty.
Since 2019, total sales at “limited-service” restaurants – which are generally chains in the fast casual, QSR space – have met or exceeded sales of “full-service” restaurants. Prior to 2019, this only happened once in the previous 25 years, according to the USDA Economic Research Service: in 2010, off the heals of the Great Recession. A shift in how customers dine has been unfolding, and it started before Covid. At the same time, more convenience store chains are crossing over into the limited service restaurant space, further shifting customer behaviors.
Already, several of the larger convenience store chains could also be considered QSRs, and many others are making strategic long-term investments and immediate changes to how they operate, in order to achieve dual-QSR/convenience store status. For example, Casey’s convenience store chain is the 5th largest seller of pizza in the country. For many of these convenience store chains, crossing over is a matter of survival, as their traditional categories experience flat to negative growth and comparatively lower profitability than foodservice.
Which chains among leading fast casual, QSR and convenience stores are best positioned for the fast and easy meal mission depends on a variety of factors. We’ll cover which chains are best-positioned to win in the long-term in this space and, more importantly, why.