QSR Magazine: Fast Casual Sales are Still Struggling

As grocery store prices continue to drop and consumers become more selective with spending at restaurants, fast casual brands are taking the hit. According to a recent QSR Magazine article, BDO’s Latest edition of The Counter reports that restaurants overall saw same-store sales drop by 0.2 percent in the second quarter and fast casual sales fell 1.7 percent. More brands continue to join the category and experts believe it may be starting to plateau.

“We continue to see higher labor costs due to several factors. While saturation in the fast casual segment has affected same store sales, it has also had an effect on the cost of labor as the industry is dealing with a shrinking labor force,” said Adam Berebitsky, co-leader of BDO’s Restaurant Practice.

The industry leading the pack was pizza, which saw 3.5 percent same-store growth. Dominos continues to take the top spot in the category and as technology becomes an increasingly important factor for brands, the pizza chain is always innovating and giving customers more ways to order and track their food.