-0.40%

-0.20%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

CD Family FC FINE QSR UC 3PD

18-24 25-34 35-44 45-54 55-64 65+

Average Change in Share of Wallet by Age Demographic & by Segment

Source: Consumer Intelligence

The fast casual industry experienced a drop in the average share of wallet across each age demographic. The largest drop occurred in the 18-24 demographic, with an average of -0.09 percent shifting spend elsewhere. The smallest declines occurred in the 35-44, 45-54 and 65 and over age groups.

Fine dining had the largest growth in average share of wallet across age groups. Fine dining is outperforming other segments in the industry based on same-store sales growth, followed by family dining.

Notable, third-party delivery providers have received the highest average change in the share of wallet across all demographics. This means that fast casual brands are not necessarily losing out on sales, they are simply taking place through other providers.

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1

Share of wallet, tracked in Consumer Intelligence by TDn2K™, shows where guests spend their money when they aren’t with you. Clients that use this platform have access to this data and much more at the industry, sub industry and brand level.

Total Sales, Fast Casual Versus Industry

-3.00%

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%20

17 S

EP

2017

OC

T

2017

NO

V

2017

DEC

2018

JA

N

2018

FEB

2018

MA

R

2018

APR

2018

MA

Y

2018

JU

N

2018

JU

L

2018

AU

G

2018

SEP

T

2018

OC

T

2018

NO

V

2018

DEC

2019

JA

N

2019

FEB

2019

MA

R

2019

APR

2019

MA

Y

2019

JU

N

2019

JU

L

2019

AU

G

2019

SEP

T

Total Sales Fast Casual Total Sales

00.0050.01

0.0150.02

0.0250.03

0.0350.04

0.0450.05

2017

SEP

2017

OC

T

2017

NO

V

2017

DEC

2018

JA

N

2018

FEB

2018

MA

R

2018

APR

2018

MA

Y

2018

JU

N

2018

JU

L

2018

AU

G

2018

SEP

T

2018

OC

T

2018

NO

V

2018

DEC

2019

JA

N

2019

FEB

2019

MA

R

2019

APR

2019

MA

Y

2019

JU

N

2019

JU

L

2019

AU

G

2019

SEP

TPPA/PTA Growth, Fast Casual Versus Industry

PPA/PTA Growth Fast Casual PPA/PTA Growth

-0.06

-0.05

-0.04

-0.03

-0.02

-0.01

0

0.01

2017

SEP

2017

OC

T

2017

NO

V

2017

DEC

2018

JA

N

2018

FEB

2018

MA

R

2018

APR

2018

MA

Y

2018

JU

N

2018

JU

L

2018

AU

G

2018

SEP

T

2018

OC

T

2018

NO

V

2018

DEC

2019

JA

N

2019

FEB

2019

MA

R

2019

APR

2019

MA

Y

2019

JU

N

2019

JU

L

2019

AU

G

2019

SEP

T

Traffic, Fast Casual Versus Industry

Traffic Fast Casual Traffic

2

Same-store sales for the fast casual segment is on par with the industry. Even though comp sales have been positive for the majority of the last 24 months, they are trending down. During September of 2019, comp sales for the industry reached an actual year-over-year contraction point.

The weakening same-store sales growth and abysmal traffic results are occurring despite rises in guest check. For both the fast casual segment and the industry overall, per person and per ticket averages have been steadily increasing.

Compared to the rest of the industry, fast casual experienced a huge jump in delivery sales. The monthly average from September 2017 through August 2018 compared to September 2018 through August 2019 changed from 10.30 percent to 28.46 percent. The industry as a whole grew to 7.40 percent in delivery sales.

The fast casual segment experienced a 7.0 percent increase in off-premise as a percentage of total sales since 2016. Off-premise includes the use of third-party delivery providers. With the shift in consumer expectations toward more convenient options, operators can’t ignore the impact of off-premise consumption. Regardless of whether brands are using third-party providers or in-house delivery, brands with a clear strategy in regard to how they translate the brand experience through to-go and delivery options will stay ahead of the curve.

-0.1

-0.05

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

Dine In Sales To-Go Sales Delivery Sales Drive Thru Sales Catering Sales

Monthly Average Sales by Type - Fast Casual Versus Industry

Industry - Year 1 Industry - Year 2 Fast Casual - Year 1 Fast Casual - Year 2

3

TDn2K clients who subscribe to Black Box Intelligence™ are able to compare performance with data collected from 31,000 restaurant units. Metrics include comp sales, traffic, check growth, food and beverage sales. Operators can drill down into the data regionally or by segment. Membership to Black Box Intelligence also includes a targeted competitor report as well as access to the Market Share and Industry Growth Report, which includes data from member companies as well as large publicly traded restaurants, the largest data set available for the restaurant industry.

The fast casual and quick service segments were the only two that experienced an increase in market share from 2019 year to date compared with the same period the previous year. However, when viewing the data over a longer time frame, market share remains relatively unchanged across all segments.

- Casual Dining 19.77%

2018 2019 YTD

Casual Dining 20.17% -

Family Dining 4.49% -

Fast Casual 10.82% -

Fine Dining 0.93% -

Quick Service 60.77% -

Upscale Casual 2.83% -

- Family Dining 4.43%

- Fast Casual 11.00%

- Fine Dining 0.93%

- Quick Service 61.07%

- Upscale Casual 2.79%

Source: TDn2K Market Share and Industry Growth Report

4

0

5

10

15

20

25

30

35

40

Fast Casual - 25th Fast Casual - 50th Fast Casual - 75th

Employees Per Unit, 2019 YTD

Average turnover for the fast casual segment rose 0.8 percent for the 12-month period ending in the second quarter of 2019 compared to the same period the previous year. Fine dining experienced the largest increase in turnover, rising 2.1 percent, followed by family dining at 1.3 percent. Quick service and casual dining remained relatively unchanged. Brands that are tackling the turnover crisis are finding creative ways to engage and retain staff. TDn2K research indicates efforts should begin at the general manager level, and the benefits will trickle out to the rest of the staff. Data from TDn2K’s Restaurant Manager Con-nect Engagement Survey, produced in partnership with Gallup, indicates that managers need more focus on work-life balance, as well as career development on top of regular training opportunities.

Fast Casual Average Hourly Wageby Position, Second Quarter 2019

Position

Cashier

Dishwasher

Line Cook

Shift Leader

Team Member/Crew

Average

$11.41

$12.02

$12.78

$14.41

$11.33

Sales Per Labor Hour

*Total sales divided by total labor hours

FAST CASUAL

$54Position

25th Percentile

50th Percentile

75th Percentile

Management

17.8%

22.5%

29.4%

Non-Management

57.8%

73.8%

81.3%

Fast Casual Turnover: 2019 YTD

Fast CasualMedian Salary2019 YTD

$38,093KitchenManager

$60,791GeneralManager

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TDn2K clients who subscribe to People Report™ are able to track staffing levels, demographics and turnover metrics for the restaurant industry as well as compensation and benefits analysis on a monthly, quarterly and annual basis. Clients can benchmark their workforce metrics with direct competitors, with the added benefit of geographic context.

TDn2K data indicates that the brands that are able to solve for turnover and traffic are winning in online guest sentiment. It is becoming more obvious that food and beverage are table stakes and guests are expecting a superior service experience that will drive their intent to return.

TDn2K membership has its perks. TDn2K clients have a dedicated client success manager backed by a team of analysts to help you sort through your data and make sense of it. The TDn2K team is with you every step of the way beginning with training all the way through helping you prepare for board meetings or special promotions.Are you ready for a custom product demo? Contact the sales team today and your product expert will get in touch with you quickly to help you find the best fit for you. Contact sales@tdn2k.com

TDn2K clients that subscribe to White Box Social Intelligence™ can track brand sentiment utilizing key attributes such as food, beverage, ambiance, value, service and intent to return, down to the unit level. Learn what customers are saying about you, analyze the sentiment behind their comments and connect your social data to operational performance metrics.

Average Net Sentiment by Attribute 2019 YTD

Fast Casual Net Sentiment by State 12 Months

Fast Casual AverageRestaurant Ratings

3.73 3.883.88 2.85

FoodBeverageAmbianceIntent to ReturnServiceValue

18.52%13.49%16.66%48.78%10.22%-4.84%

Net Sentiment Score =% Positive Online Mentions - % Negative Online Mentions

Top 10 Words by Classification for Positive and Negative Fast Casual Restaurant Reviews

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