Article at a glance:
US fast-food chains and full-service restaurants are starved for growth as consumers increasingly demand what neither can profitably offer: fresh food served quickly in a distinctive, casual environment. This "fast-casual" segment could not only be worth $35 billion annually by 2010 but also account for over half of all food service growth during the first decade of the 21st century. But how can operators deliver fresh restaurant fare as efficiently as they now provide fast food made from frozen ingredients?
The take-away
No one has yet found the way to make a profit by delivering a distinctive dining experience on a fast-food scale. But US food service operators that successfully meet the consumers' changing dinner needs and preferences could reap margins as high as 15 percent and claim a valuable stake in the nascent fast-casual segment.