So what is happening with fast food?

Australia and Canada have more in common than simply being two of the largest countries in the Commonwealth, they also have similar tastes and cultures. Therefore studies done about the food industry in Canada are of significant interest to those in our food industry, particularly in the fast food sector.

A specific part of that sector is what is known as Limited Service Restaurants(LSRs). These are the food businesses where customers / patrons order and pay for their food at the register or counter.

The well known fast food chains are part of this group, as are the local fish and chip shop and “fast casual” restaurants.

A recent report released in Canada, the Technomic’s Top 200 Canadian Chain Restaurant Report, has shown that in 2011 the LSRs make up 85 percent of the Top 200 in terms of sales, this amounts to $19.6billion.

This makes these fast restaurants the driving force in this food industry sector. If this also applies to Australia, we are seeing a major growth of the chains.

You only have to look at the advertising seen on our TVs and other locations to see that the chains are continuously finding new ways to encourage us to buy. The menus are becoming more upmarket or even a little gourmet, whilst the ambience is also improving. The prices are being kept affordable and the service has to be fast.

There was a time when you would go into a chain and just take the food that was already cooked, whereas now more and more food is being made to order. This is essentially about reducing wastage but is seen by customers as being done “just for them”.

The Executive Vice President at Technomic Information Services, Darren Tristano, says; “Most of the “hot concepts” have broad consumer appeal. Consumers are seeking out locations that offer something unique, which is often delivered through fresh, better quality ingredients, a contemporary décor and ambiance, and interactive service formats,”

It is important to remember there is a difference between fast food and fast casual businesses; the first is about convenience and value, whereas the second is food being distinct and in a pleasant environment.

The problem is that the line between them is becoming less obvious, as both aim to be fast whilst providing higher quality healthier food and pleasant environments.

The Technomic report shows that;

– Breakfast is increasing becoming an important part of the day for these businesses with significant increase in sales since 2009

– 30 percent of consumers visit fast-casual restaurants at least once a week, nearly twice as many (59 percent) patronize fast-food concepts weekly

– Lunch is the best time of the day for this sector

– Eating healthy is the movement, including meals for kids

– People are looking for new flavours