• Brandweek , Monday, September 15, 2008 10:45 AM

Two research reports show that sales in the fast-casual restaurant segment shot up more than 13% last year, and experts predict the growth to continue. Mintel, Chicago, cites a 13.2% increase in the sector, to $11.5 billion last year. Technomic, Chicago, pegs growth at 13.3% and estimates the category to be around $17 billion.

Chains like Panera Bread and Chipotle are thriving partially because of demographics. They have a younger consumer base that has more discretionary income. The category also is stealing baby boomers from their fast food rivals, says Jeff Davis, president of Sandelman & Associates, Villa Park, Calif.

Another reason for the segment's success is the fact that its price points aren't that much of a turnoff for consumers who are shying away from sit-down casual dining restaurants, which tend to be more expensive once you factor in tips for the wait staff.

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