You're not alone if you find yourself at a fast-casual restaurant this week. Consumers are increasingly willing to pay a little more for higher-quality meals than you’d typically expect at fast-food restaurants. They’re also more likely to skip dining at a full-service restaurant, given those restaurants have become increasingly pricey because of inflation.
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Fast-casual restaurant sales are soaring
The quick-service restaurant market is increasingly winning fans among time and cash-strapped consumers. Fast casual restaurant sales are expected to increase by $55.4 billion between 2022 and 2027, a compounded annual growth rate of 11.6%, according to Technavio.
Diners' love for fast-casual meals is proving to be a boon to regional and national chains, including Potbelly Corporation (PBPB) -), a 429-store restaurant with a neighborhood sandwich shop vibe.
In the second quarter, a nearly 13% increase in sales at stores open for at least one year helped Potbelly's total revenue increase by over 9% to $127 million.
Potbelly's CEO, Bob Wright, thinks the chain’s winning ways will continue, allowing it to challenge competitors like Chipotle (CMG) -), Portillos (PTLO) -), and Panera Bread for more market share.
In this wide-ranging podcast, Chris Versace from Action Alerts PLUS discusses the ins and outs of Potbelly’s business with Wright. The two discuss Potbelly’s 5-pillar strategy for success, restaurant industry trends, and plans to penetrate existing markets more effectively by opening up to 2,000 stores over the next ten years.
It doesn’t matter if you’re a fan of fast-casual restaurants. You'll still enjoy this podcast if you’re a fast food or full-dining restaurant fan. You may even want to head out to your local restaurant, put in your headphones, and listen while you enjoy your next meal.
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