May 2016 — Retail Properties Quarterly —
Page 11
Restaurant Trends
People want more options for quick,
healthy and delicious food and Kevin
Reddy, CEO of Colorado-based Noo-
dles & Co., thinks Colorado’s entre-
preneurial focus and young, healthy
lifestyle creates an environment that
meshes new flavors and trends to
make them appealing to the masses.
The enormous success of many
Colorado-based eateries testifies to
that fact. Now with 470 restaurants
nationwide, Noodles & Co. serves 60
million people a year and opens a
new store nearly every week.
People also are eating out more
than ever, and millennials are at the
forefront of this trend. Last year was
the first year that restaurant and bar
sales exceeded grocery store sales,
highlighting that spending on eating
out continues to increase and shows
no sign of stopping. Millennials tend
to be more willing to spend money
on eating out, viewing it as social
entertainment, and the restaurant
industry is working hard to find new
ways to appeal to this group.
Millennials favor pizza, Mexican,
fast-food and fast-casual concepts
over sit-down restaurants, and are
willing to try new flavors and inter-
nationally influenced cuisine – one
reason why fast-casual restaurants
often offer a more eclectic menu
than a typical fast-food restaurant.
The growth of “new” concepts like
Garbanzo, Chipotle, Qdoba, Noodles &
Co., and the success of Mexican food
concepts – now the biggest segment
of the fast-casual group – is due to
this youthful attitude and desire for
new tastes. What is especially power-
ful is how it has been embraced in
markets all over the world.
Providing healthy choices is anoth-
er emerging trend in fast-casual,
pioneered once again in Colorado by
concepts like Modern Market. There
is a greater emphasis on develop-
ing menus in a thoughtful manner
the public likes – by locally sourcing
food, eliminating preservatives, using
all-natural products, and offering
options including gluten free and
vegan – which is trickling into the
fast food industry as former trend
setters like McDonald’s, Taco Bell and
Subway fight to keep up.
The front-runners in the business
think about what will appeal tomor-
row. New ideas include influences
from Asia and the Mediterranean –
hearty soups like pho and ramen as
well as pizza and pasta.
At the forefront of the fast-casual
scene locally are new concepts by
established greats. Chipotle is rolling
out a pizza concept – Pizzeria Locale,
as well as a new burger restaurant;
and Smashburger’s parent company
is focusing on a new pizza chain –
Live Basil. Chef Troy Guard and TAG
Restaurant Group rolled out a fresh
bowl concept, featuring Asian flavors
customizable with numerous protein
options and seasonal locally sourced
ingredients. With two locations cur-
rently, the concept is expected to sat-
isfy the desire for the next big thing
in the food revolution.
In regard to real estate, the latest
trend locally and nationally is com-
munal or shared space. One example
is Avanti Food & Beverage, located
in Lower Highlands, which is a col-
lective space offering seven culinary
options served out of modified ship-
ping containers. Offering a full bar,
communal seating and an eclectic
menu, the shared concept creates
synergy with its multiple options,
drawing the public to linger, explore
and socialize. Most importantly, it
creates a testing ground for new con-
cepts and menu items, and appeals
greatly to the younger set.
Metro Denver’s growth rate has
consistently outpaced the national
rate and the region grew steadily in
the past 10 years. With the projected
population growth anticipated to
increase to more than 3.3 million by
the year 2020, it’s likely the Denver
metro area will continue to be a mag-
net for testing menus and concepts
for the masses. Expect to see new
fast-casual food models pop up in a
community near you.
s
Photo courtesy Newmark Grubb Knight Frank
Colorado is home to many fast-casual brands, including Noodles & Co., Chipotle, Qdoba, Quiznos, Smashburger, Tokyo Joe’s,
Modern Market, Larkburger and Mad Greens.
