The Fast-Casual Champion: CAVA’s Mediterranean Revolution
While many restaurants struggled in 2024, CAVA has absolutely dominated the fast-casual space. The Mediterranean chain experienced a whopping 23.6% increase in customer visits in the first quarter of 2024 compared to the same period in 2023. What’s driving this incredible success? The answer lies in rapid expansion and smart pricing strategies.
CAVA ended the latest quarter with 323 restaurants and plans to open between 50 and 54 new locations in total this year, with a longer-term goal of reaching 1,000 units by 2032. The numbers tell an even more impressive story – revenue was up 35 percent for fiscal 2024, with average unit volumes jumping to $2.9 million from $2.6 million, and same-store sales grew 2.3 percent in Q1 before accelerating to 14.4 percent, 18 percent, and 21.2 percent in the next three quarters.
Wingstop Soars to New Heights
In 2024, few restaurant chains are flourishing quite as fiercely as Wingstop, which reported an impressive 21.6% increase in domestic same-store sales in the first quarter of 2024. The Dallas-based wing chain isn’t just growing – it’s absolutely crushing the competition with numbers that make other chains jealous.
In 2024, sales grew to approximately $4.8 billion and same-store sales lifted 20 percent, while the fast casual also opened a net of 278 restaurants. CEO Michael Skipworth has an interesting perspective on the brand’s potential, calling it “the biggest brand no one has heard of,” citing a 20 percent awareness gap compared to peers. With ambitious plans ahead, Wingstop raised its long-term target to over 10,000 locations globally along with its goal to raise average annual sales per restaurant to $3 million from $2.1 million.
Jersey Mike’s Unprecedented Expansion Machine
If there’s one chain that’s making sandwich lovers everywhere happy, it’s Jersey Mike’s. The New Jersey-born sub shop has become an absolute expansion powerhouse that’s reshaping the sandwich landscape. Jersey Mike’s net growth of 313 in 2024 followed expansion of 288 and 296 restaurants, respectively, in the prior two years, with the brand scaling by 1,055 units over a five-year period leading up to 2023.
The chain isn’t slowing down anytime soon either. Out of all the chains featured on this list, Jersey Mike’s Subs has one of the most aggressive growth agendas, with CEO Peter Cancro telling QSR Magazine late last year that the company plans to open 350 locations in 2024, intends to follow that up with roughly the same number of openings in 2025 and then 400 to 450 openings in 2026. The financial transformation has been remarkable – going back to 2016, the brand had 1,187 restaurants on average-unit volumes of $825,000, but it exited 2024 with 2,989 stores and AUVs of $1.339 million.
Chick-fil-A’s Steady Dominance Continues
In the competitive world of fast food, Chick-fil-A is one of the players to watch in 2024, reigning as the country’s largest chicken chain by sales and the third-largest restaurant chain in the United States overall, with last year being particularly strong as it grew its sales by nearly 15% and grew its store count to nearly 6%. The brand continues to enjoy incredible customer loyalty that most chains can only dream about.
Aside from its financial strength, Chick-fil-A also continues to see intense adoration from its fanbase, with consumers rating it as their favorite restaurant brand for nine consecutive years in the annual American Customer Satisfaction Index (ACSI) Restaurant Study. The chicken giant is also pushing hard into international markets – the chicken chain hopes to have a presence in both Europe and Asia by 2025 and a total of five international markets by 2030, with plans released late last year for Chick-fil-A restaurants to open in the United Kingdom by early 2025, aiming to have five locally owned and operated locations in the United Kingdom by the end of 2027.
The Ruth’s Chris Steakhouse Surprise
Sometimes the most unexpected chains find their moment to shine. Americans, apparently, are very fond of indulging in premium steaks served on sizzling plates in an upscale setting, and Ruth’s Chris Steak House has been experiencing a recent surge in popularity, with customer visits rising by 5% in the first quarter of 2024. In an era when many full-service restaurants are struggling, this upscale steakhouse has found a way to thrive.
The success of Ruth’s Chris proves that consumers are still willing to spend on premium dining experiences when they perceive real value. While other casual dining chains battle with value meals and promotional pricing, Ruth’s Chris has stuck to its premium positioning and found success. This trend suggests that the dining market is becoming increasingly polarized between ultra-value options and premium experiences, with less room for middle-ground concepts.
Tropical Smoothie Cafe Rides the Health Wave
If Tropical Smoothie Cafe’s booming success is any indication, Americans have a huge appetite for fruit smoothies and bowls right now, with the chain having an undeniably strong year in 2023 as it opened a whopping 176 new locations, growing its footprint by 14%, and it was also the twelfth consecutive year in which Tropical Smoothie Cafe saw positive same-store sales. The brand has perfectly positioned itself in the fast-growing health and wellness segment.
What makes Tropical Smoothie Cafe particularly interesting is how it’s capitalized on the growing demand for healthier fast-casual options. While traditional fast-food chains struggle with changing consumer preferences toward healthier eating, Tropical Smoothie Cafe has built its entire concept around this trend. The chain’s success shows that consumers are willing to pay premium prices for perceived healthier options, especially when they’re convenient and taste great.
Shake Shack’s Aggressive Growth Strategy
Have you caught yourself wondering where all of these Shake Shack locations came from all of a sudden? One of America’s fastest-growing burger chains, the Shack increased its footprint by roughly 15% in 2024, and its aggressive growth strategy is not slowing down anytime soon. The premium burger chain has managed to carve out a unique niche in the crowded burger market.
After seeing solid increases in sales and revenue during the first quarter of 2024, Shake Shack plans to keep up the momentum by opening around 80 new stores in 2024, with these new openings expanding the chain’s footprint by about 15%. What’s particularly impressive about Shake Shack’s growth is that it’s happening in a burger market that’s incredibly competitive, with major players like McDonald’s, Burger King, and Wendy’s all fighting for market share.
Fast-Casual Coffee: Dutch Bros and Scooter’s Surge
The coffee wars are heating up beyond just Starbucks and Dunkin’. Dutch Bros Coffee continues to thrive by rising from number 50 last year to number 44 this year in national restaurant rankings. Meanwhile, Founded in Nebraska 1998, Scooter’s Coffee has only recently begun aggressively expanding through franchised locations, with the Midwestern coffee chain’s standard, drive-thru-only location being only 664 square feet, making it quick to build and cheap to operate, and Scooter’s net new locations jumped 53% from 2022 to 2023.
These regional coffee chains are proving that there’s still room for growth in the coffee market, especially if you can offer something different from the big players. Dutch Bros focuses on a fun, energetic culture and premium drinks, while Scooter’s emphasizes efficiency and convenience with its small-format drive-thru model. Both approaches seem to be resonating with consumers who want alternatives to the traditional coffee shop experience.
The Casualty: TGI Fridays Falls from Grace
Weeks after reports first emerged that TGI Fridays was preparing for a potential bankruptcy, the casual dining chain announced a Chapter 11 filing on Nov. 2, with the bankruptcy affecting the 39 company-owned TGI Fridays locations, and the bankruptcy filing capping off a difficult period for the chain, which has struggled for years with sales growth and closures. The once-popular chain that helped define casual dining has become a cautionary tale of what happens when brands fail to evolve.
This year has been a particularly tough one for TGI Fridays, as it shuttered roughly 50 restaurants in 2024 after years of struggles with sales growth and closures. The chain’s decline reflects broader challenges facing the casual dining segment, where consumers are increasingly choosing between ultra-convenient fast-casual options or higher-end dining experiences. TGI Fridays got caught in the middle, unable to compete effectively in either space.
