What Families Want From The Growing Fast Casual Restaurant Segment

January 10, 2023

It comes as no surprise that fast casual restaurants are a growing segment of the restaurant industry. According to NPD Group/CREST®, while overall restaurant traffic is down 4% in the last three years, fast casual traffic is up 9%1.

As fast casuals become a growth engine for the restaurant industry, we at C3 have been pondering how this important segment is engaging with its kid and family customers. To find out, we conducted research2 with parents and kids to hear what they want to see from fast casual restaurants, when dining in, carrying-out or in the drive-thru. Here are a few of our learnings:

Fast Casuals Have the Food…
Parents would often rather go to fast casual restaurants with their families than quick service restaurants because they perceive it as higher quality and better-for-you, but their kids often ask for fast food instead. Why? Kids like the food AND they get a toy.

…But lack kid-focus.
It is evident to the parents we talked to that most fast casual restaurants don’t focus on the kid and family experience. As one dad said: ‘So at the end of the day, there’s nothing relatable to a kid […] If they have something specific that stands out and says “Oh, so [this fast casual brand] does focus on kids now.” Yeah, then I think they would get the [family] business.‘

Even for brands that have kids’ menus, they’re often de-emphasized on the menu board and lacking in options. In addition, most fast casual brands don’t engage kids directly through packaging, messaging or entertainment.

And that’s a missed opportunity.
The lack of focus on kids is a big miss given that parties with children 12 and under bring in checks that are twice as high as parties without them3, and that can help drive a brand’s revenue. One of the opportunities our research revealed is for the fast casual segment to engage with kids directly, making their brands a go-to destination for families.

How to engage with families

Engagement Through Packaging
Not only is kids’ packaging an opportunity for direct communication with young customers through kid-friendly designs, but it’s also fun for them to “have their own little world in a box or a bag” (as one dad told us).

It’s also easier for parents. As one mom in our study said: “Because then my kids can each have their own bag. I mean, my kids, they fight over sharing things […] So, then we bring a bag in and they’re all like rifling through it, trying to find what’s theirs. If they just did individual bags like McDonald’s or Chick-fil-A, it’s just so much easier.”

Engagement Through Entertainment
The parents we talked to wished more fast casual restaurants would offer toys or activities for their kids. This type of entertainment would serve three purposes:


To bring kids fun and joy.
“It would make [my daughter] feel pretty special.”


To help parents have a moment of peace or relaxation while their kids are distracted and entertained.
“If I could sit there, enjoy conversation, watch my kids do something fun and new […] then that would be, yeah, that would be really relaxing.”


To drive additional family traffic.
“So, if they got new stickers or a new puzzle, they would still be excited to play with it at home and they would probably ask to go to that place over and over again.”


At the end of the day, fast casual brands have the opportunity to be in the family dining rotation more frequently by “checking all the boxes,” as one mom said.

[checkmark]Food I like

[checkmark]Food my kids like

[checkmark]And they get a toy

“They’d probably want to go there maybe even more than [fast food].”

If you’re interested in hearing more about our research, including the type of entertainment and activities parents thought fast casual restaurants should provide—as well as how they’re different from QSR toys — contact us.

CONTACT US


1 The NPD Group/CREST®, October 2019 to October 2022.
2 C3 Fast Casual Qualitative Study, August 2022, n=15 in-depth-interviews with parents of kids 4=8
3 The NPD Group/CREST®, year ending December 2021


ABOUT C3
C3 is a Kansas City-based marketing and design agency that brings brands to life for families with children through experiences and entertainment. C3 uses insights, strategy and expertise to produce award-winning programs and custom products to help major restaurant, hospitality and service industry partners connect with families wherever they are—in person, at home or in the community at large.


C3 Lab Trendspotting - Collectibles for All Ages
Brands are targeting adults with collectibles and giveaways. Recently, we’ve seen restaurants offering toys and other tangible brand-building collectibles as incentives to drive traffic Read more
Screen-Free Entertainment: Encourage Family Time and Drive Family Traffic
Restaurant meals are time-honored opportunities for families to bond, enjoy family time and forge new family traditions. Whether in-restaurant, at home, or on-the-go, and Read more
C3 Lab – Activate your customers with collectibles for all ages
Brands are always looking for new ways to drive traffic, incentivize loyalty and increase brand love with their target consumers. One innovative tactic for Read more
A mother and child purchasing food from a convenience store
Families are a valuable market for convenience stores, especially for retailers looking to grow their foodservice business. We at C3 know that one of Read more
C3 In The News
Check out these industry articles and reports to see what we've been up to lately. We’re experts on families with children, so we’re always Read more
How to Be Kid-Friendly in Fast Casual Restaurants Feature
The third edition of our How To Be Kid-Friendly infographic series. Download as a PDF and check out the QSR edition here or CDR edition here. Read more
C3 Lab Families Are Important To Restaurants
At C3, we lead with data and insights. One of our favorite data sources is Circana (formerly NPD Group), which provides us with regular Read more
C3 Lab Building Brand Loyalty
Every day, we at C3 design, safety-test, produce and deliver engaging entertainment solutions for our clients’ family customers. Once in a while, we step Read more
C3 WEBINAR LAB Header 1366x768
In February of 2022, C3 was proud to host a webinar in partnership with Nation’s Restaurant News’ CREATE the future of foodservice series entitled Read more
C3 offpremises header
Grow sales and delight families with brand-tailored off-premises solutions Take-away is here to stay. As we know all too well, recent years have turned Read more
C3 LAB Pizza FeatureFIXED 112
You know how great pizza is for families, but what about how valuable families are for pizza? Our latest research has confirmed what many Read more
C3Lab More Than A Cup
From the C3 dictionary: Kids’ Cup, Noun A perfectly kid-sized drinking vessel used by casual dining, fast casual and QSR brands to make families Read more
C3LAB Post Covid SingleVersion Final
Spring has sprung, COVID-19 vaccinations are rolling out across the U.S., and C3 has the latest insights from families on indoor dining. During the Read more
Crayon Deep Dive
Crayons are a perfect symbol of the joys of childhood: creating, playing, learning. They’re classic; they’re inexpensive ... They are timeless. As basic as Read more
C3Lab Off Premise2
There’s no question that off-premises dining has become an essential part of people's lives. During the pandemic, it was a necessity. After the pandemic, Read more
C3 Lab Off Premises Feature 106
One of the many things that’s been upended in 2020 is how families experience casual dining and fast casual restaurants. With the shift towards Read more
C3Lab 13 Facts About Kids and Restaurants Feature 105
Download as a PDF. The Art + Science of Kid + Family Marketing Get the latest kids and families insights delivered directly to your Read more
How to Be Kid Friendly in CDR Feature 104
UPDATED APRIL 2022 Part 2 of our 2-part infographic series. Download as a PDF or check out part 1, the Fast Food Edition here. Read more
How to Be Kid Friendly in QSR Feature 103
UPDATED APRIL 2022 Part 1 of our 2-part infographic series. Download as a PDF or check out part 2, the Casual Dining edition here. Read more
C3LAB ReturntoRestaurants Feature 102
Why isn’t it over yet? When can things go back to how they used to be? Like a kid kicking their feet in the Read more
C3Lab FamilyValue Feature 101
We know kids. What they like, how they spend their time… and their favorite places to eat. We know that when families go out, Read more
C3Signature Launch
C3 Brand Marketing launches kids’ meal entertainment program, prioritizing family-owned restaurants. Independent restaurant owners can now elevate the family customer experience with tailored, kids’ Read more