Fast-casual restaurant sales growth cooled in 2025

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Cava grew sales by 22% in 2025, leading the Mediterranean niche. | Photo: Shutterstock.

Sales growth cooled considerably in the fast-casual restaurant chain segment in 2025, but it was a good year to be a Mediterranean or sandwich brand.

Sales among fast-casual chains rose by 6% overall among the Top 500 Restaurant Chains to nearly $77 billion, according to Technomic. But that growth rate marked a noticeable deceleration from the fast-casual segment’s nearly 9% average growth rate over the last three years.

Limited-service chains overall grew sales 3.1% to $361.5 billion last year, down from the 3.7% increase in 2024. Within that category, quick-service chains grew sales by 2.4%, which was roughly the same as the prior year.

Unit growth among the limited-service Top 500 chains also slowed somewhat to 1.6% growth, compared with 1.9% the prior year. 

But fast-casual chains, meanwhile, grew their units by 5.1%, up from 4.8% unit growth in 2024.

Among the Top 10 fast-casual chains, however, it was Shake Shack that grew domestic sales the most last year, showing more than 15% growth with 420 domestic units, followed by Jersey Mike’s, which grew sales more than 12%. The sandwich chain’s unit count was up 8% to 3,227. 

Both Wingstop and Raising Cane’s also had double-digit sales increases. Wingstop also added more restaurants last year (net 382) than any other brand, increasing its unit count by 17% to 2,586.

The slowdown in fast-casual sales overall is likely a result of consumers becoming more discerning in their spending last year, which took a toll on some fast-casual chains—particularly those deemed more expensive.

Sweetgreen, for example, grew sales an anemic 0.4% last year, despite a 14% increase in unit count.

Panera saw sales decline nearly 3% in 2025, despite 1% growth in units, and that’s on top of a 5% decline in sales in 2024. Panera was the only Top 10 fast-casual chain to see sales decline.

In a podcast on America’s Favorite Chains, Robert Byrne, Technomic’s senior director of consumer research discussed the state of fast casuals, saying the segment is being squeezed by value plays between casual-dining—which is being rediscovered by a younger audience—and quick-service.

The fast-casual segment has long been defined by higher quality food with convenience. But now all brands are convenient, Byrne said. “Digital ordering just eradicated that edge that anybody might have.”

And consumers now see casual-dining chains, like Chili’s, as being as affordable as fast casual, except at Chili’s, guests can get a drink and desserts like molten chocolate cake, he noted.

Fast casuals also tend to have customizable menus. When guests make their bowls the way they want, that can add to the price, thereby hurting perceptions of value.

Brands like Cava, however, have successfully positioned as an everyday value. The 439-unit chain kept menu price increases to a minimum last year.

Cava remains the leader among fast-casual Mediterranean concepts, riding a wave of 22% sales growth in 2025 and surpassing $1 billion in sales.

And that rising tide lifted other boats in the niche. 

The 109-unit Taziki’s Mediterranean Cafe grew sales more than 10%, to nearly $198 million, while 93-unit Nick the Greek was up more than 22%, and 83-unit Great Greek Mediterranean Grill topped 36% growth after adding 15 units last year.

The 43-unit Lebanese shawarma concept Naya, meanwhile, grew sales nearly 41%, with an average unit volume of $2.47 million, nearing the $2.93 million AUV set by Cava.

Meanwhile, the largest restaurant chains added a net of 3,400 locations last year, and almost half of that unit growth came from five brands (three of which are fast casual): Wingstop, Cinnabon, Chipotle, 7 Brew and Jersey Mike’s.

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