Know The Restaurant Types and Why They Matter

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“Fast Food” “Fast Casual” “Fine Dining”

Before you dig into these easy explanations, it’s a fact that the fast casual segment has been growing at 3-times the rate of all other parts of the restaurant industry for 9 straight years. Even now, during these bizarre times.

Here you go:

What’s Fast Food?  (AKA Quick Service Restaurant, “QSR”)

  • Average food

  • Small, limited menu

  • Rarely (if ever) offer table service

  • Quick, inexpensive meals always made exactly the same way

  • Simple, cheap, speedy

  • Frozen, preheated or precooked ingredients served in a packaged form usually for take-out/take-away

  • Food ordered from the front counter

  • Diners carry their order from the counter to their preferred table

  • Diners dispose of their own waste

  • Pay upfront

  • Mass produced product

  • Usually no alcohol available

  • Have drive-thru windows and encourage take-out

  • Cater to budget-conscious folks in real hurry

  • Functional ambiance

  • Plastic seating and tabletops

  • Fluorescent lighting

What’s Fast Casual? (AKA Limited Service Restaurant, or “LSR”)

  • Fresh ingredients with fast-food convenience

  • Higher quality food than fast food, yet in an informal setting, with counter service to keep things speedy

  • More sophisticated ambiance than fast food

  • Healthier, spicier options and far more of them

  • Meal quality closer to fine dining than fast food

  • Convenience

  • Growing much faster than fast food and sit-down counterparts

  • Offers affordability, quality taste & great customer service

  • Customized selections

  • More food prepared at the restaurant than fast food (which is often frozen and then reheated)

  • Full table service is not usually offered

  • Disposable plates and cutlery are common

  • Quality of food and prices generally higher than fast food, but lower than fine dining

  • Fewer frozen or processed foods than fast food

  • Sales increased dramatically during and after the 2008 economic recession

  • Caters to everyone, but especially those who want healthier options, more choice yet the affordability that fast food offers

  • Made-to-order food

  • More complex flavors than fast food

  • More upscale, unique décor than fast food

  • Higher-end feel with nice interior design than fast food

  • May offer alcoholic beverages

  • Offers full meals at a good price that mean a good value for customers

  • Casual atmosphere (no ties required)

  • Average meal price between $8 and $15

  • These days, curbside pickup, delivery and, of course, take out

What’s Fine Dining? (AKA “sit down,” “upscale,” or “full-service” restaurants (“FSR”))

  • Moderately or expensive options in a casual or upscale atmosphere

  • Provides table service (meals are delivered to you at your table)

  • May require a tie (have a dress code)

  • High quality décor

  • Expectations that certain rules be followed (like dress code plus more)

  • Pay after your meal

  • Often have a full bar with bar service (not the more revolutionary self-pour option)

  • Specific, dedicated course offerings

  • Often formal atmosphere

  • Usually no curbside takeout, delivery or take-out options

  • Meals take time to cook and deliver to your table

  • High quality cuisine at a high-end price

So there you have it. Some terms explained.

CNBC recently reported that fast casual brands, that are public companies, have among the best performing stocks post-COVID-19, as they’re expected to recover much faster than other brands, or sectors (fast food, and fine dining). Furthermore, according to Restaurant Business Online: “Fast-casual… made up the vast majority of the industry’s unit growth as fast-casual operators expanded into more markets.” 

Restaurants have taken a huge hit during this pandemic. Yet fast casual’s going strong.

Industry NewsChris Wileyfast food, fast casual, fine dining