Despite consistent price increases in the food away from home category, Americans can’t seem to ditch eating out or ordering in. Inflation-weary customers aren’t trading in their fast casual bowls just yet, but they are re-evaluating what compromises a safe, enjoyable customer experience when buying meals.
To better understand how Americans are thinking about food away from home, specifically fast casual food choices and how that compares to other dining options, SmartSense surveyed 1,000 US-based adults (18+).
In the survey, the fast casual category was defined as restaurants that primarily rely on counter service, such as Sweetgreen and CAVA; the quick serve restaurant (QSR) category was defined as dining options that traditionally have drive-thru service, such as McDonald’s and Chick-fil-A; and the sit-down restaurant category was defined as full-service options like Cheesecake Factory and Chili’s.
Shoppers Are Rethinking How They Spend on Dining
Consumers are feeling the economic squeeze. As budgets remain strained while inflation rages on, 59% of U.S. adults report worsening financial conditions over the past twelve months. This impacts discretionary spending, as 66% of consumers report that their dining budgets have tightened during the same period.
Sit-down restaurants often take the biggest hit when times are tough. Seventy-eight percent (78%) of consumers say that they are more likely to decrease spending in this category when money is tight, followed by fast casual, where 69% say they reduce spending, and QSR (58% decrease). However, fast casual continues to pull the very group rumored to take the sector down: Gen Z. Seventy-five percent (75%) of Gen Z report they are more likely to choose fast casual over sit-down restaurants when money is tight. And, though 67% of Gen Z say their economic situation has worsened, they’re more likely than average to increase fast casual spending when money is tight (49% of Gen Z compared to 31% overall).
The findings point to a paradox where consumers are pulling back overall but still prioritize the convenience and perceived value that fast casual offers. However, consumers aren’t willing to sacrifice cleanliness or food safety for savings and convenience. One poor customer experience can make or break if a customer returns. Whether it’s a strand of hair in a bowl, a dirty restroom, or unclean countertops, fast casual operators must correct any operational gap that might hinder repeat business.
Safety and Skepticism Shape Customer Feelings Toward Fast Casual
The decline of fast casual has dominated headlines for months, but SmartSense’s survey finds that 70% of consumers still enjoy mixed bowl meals (e.g., rice- or salad-based bowls with customizable vegetables, proteins and sauces), a fast casual staple. Though Americans haven’t yet fallen out of love with bowls, it’s clear they’re growing more selective, and perceptions around safety play a large role in how diners view fast casual brands.
The average consumer’s take on fast casual is mixed: though 60% (and 63% of Gen Z) believe fast casual is healthier than QSR because they can often see the food as it’s prepared, they still think fast casual operators have some work to do when it comes to food safety. Sixty percent (60%) of consumers say they think fast casual restaurants are more likely to cut corners with food safety than full-service restaurants, with that number rising to 68% among Gen Z. Additionally, half of consumers (50%) believe fast casual restaurants are more prone to food recalls, with 61% of Gen Z reflecting this belief.
When it comes to assessing food safety, consumers rely on visible cues to guide smart dining decisions. Ninety-three percent (93%) of consumers indicate cleanliness of dining areas impacts perceptions of food safety, with 88% saying the same about staff appearance, the visual appearance of the food itself, and health inspection ratings, and 87% judging restaurant food safety based on restroom cleanliness. Brand awareness and the news cycle play a role too: 84% say recent news about recalls/violations drives their perceptions of restaurant food safety, and 79% consider restaurant reputation. Across the board, baby boomers are more likely to prioritize all these factors.
For fast casual brands, this means both perception and performance matter. Overcoming built-in skepticism requires consistently delivering safe, reliable experiences that build trust over time.
Loyalty Is Fragile with Fast Casual and Hard to Win Back
Fast casual brands rely on repeat visits and routine ordering to reinforce customer loyalty, especially as 37% of consumers say they buy food from fast casual restaurants at least once a week. This makes consistency crucial, as frequent visits provide the chance for operators to build loyalty. However, this also creates more opportunities to lose customers if one thing goes awry.
Food safety incidents and inconsistent experiences create lasting financial consequences on top of deteriorating brand trust for fast casual joints. In fact, 64% of consumers say they would stop frequenting a fast casual restaurant permanently if they found out about a food safety issue, and 50% have ditched a fast casual chain for years after learning about an incident. How a restaurant operates can scare away paying customers, too. Fifty-seven percent (57%) say inconsistent experiences across locations would cause them never to return to a fast casual chain. Fifty percent (50%) cite chaotic or unorganized staff, and 42% point to slow service, indicating wait times and staff attentiveness matter just as much as food safety to diners.
Even when customers do return, the timeline is not quick. Nearly one in four consumers (23%) say they would wait 18 months or more before returning after a food safety issue. A single incident can eliminate months or years of repeat business, especially when younger consumers are quick to abandon brands and switch to a competitor as fast casual dining options grow in abundance.
When purse strings are tight and consumers are actively cutting back, losses are even more difficult to recover for fast casual restaurants. Every missed visit represents not just lost revenue, but decreased value overall, as poor customer experiences impact repeat traffic and habitual takeout behavior that this category leans on.
Customers Are Quick to Leave and Slow to Return: What This Means for Brands
As inflation persists, fast casual brands continue to occupy a portion of budgets, while customers remain more selective, more skeptical, and less forgiving overall.
Maintaining a competitive advantage in fast casual requires consistent experiences across locations, high standards for food safety, and ensuring that every interaction reinforces value at the consumer level. Today’s consumers now expect transparency in operations, proactive food safety measures to be implemented, and reliable preparation of their meals, and they are not afraid to find it elsewhere if they find a brand lacking.
Brands that meet these expectations are better positioned to retain customers and protect long-term revenue. For fast casual operators, SmartSense’s IoT-powered condition monitoring ensures visibility, food safety, and operational excellence that today’s diners demand.
