Fast Casual dining is killing traditional fast food. Here are 10 investor-backed companies taking aim at McDonald's and its peers.
- February 13, 2015
- February 13, 2015
McDonald’s (NYSE: MCD, Mkt. Cap: $92.6B) recent earnings report disappointed investors, as earnings dropped 21% in Q4, and customer traffic fell 4.1% in the US. They cited their menu as being a large driver of this slump, as consumer tastes have shifted towards healthier options.
This trend is one that has taken over the restaurant industry, as more cutting-edge “fast casual” concepts like Chipotle continue to increase market share, leading to an overall 550% sales growth in fast casual food since 1999.
Source: Washington Post
We used CB Insights data on financings into private restaurant groups (including franchisees like Goldco and WKS Restaurant), to identify some of the key investor-backed players looking to compete with McDonald’s and other incumbent fast food players.
As McDonald’s and its traditional fast food peers look to re-think how they attract customers, these restaurant groups are taking advantage of the fast casual trend and a more health conscience diner. Our list ranges from companies leading the “better burger” concept like Smashburger, to premium salad chains like Sweetgreen to farm-to-table concepts like Dig Inn Seasonal Market and Lyfe Kitchen.
See the full list below.
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Protein Bar |
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| Protein bar specializes in doing “healthy…tastier” with high-protein food that can be served in a quick manner. | |
| HQ Location: Chicago, IL | |
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Total Funding : $49.6M |
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# of Locations : 20 |
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Select Investors: Catterton Partners |
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Sweetgreen |
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| Sweetgreen is an all-healthy fast food chain specializing in salads and frozen yogurts, and sources from local and organic ingredients from farmers. | |
| HQ Location: Washington DC | |
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Total Funding : $47.0M |
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| # of Locations: 32 | |
| Select Investors: Revolution LLC, Danny Meyer, Daniel Boulud |
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Chop’t Creative Salad Co. |
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| Chop’t claims to be the creator of the premium salad segment. Their expansive menu of salads and wraps as well as featured seasonal options with local produce further reinforce their position as the premium provider of salads. | |
| HQ Location: New York, NY | |
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Total Funding : $41.4M |
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# of Locations : 27 |
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Select Investors : Morehead Capital |
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Lyfe Kitchen |
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| Lyfe Kitchen serves local and organic foods to deliver convenient and affordable healthy options mostly under 600 calories ranging from salads to flatbreads to sandwiches. | |
| HQ Location: Palo Alto, CA | |
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Total Funding : $35.0M |
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| # of Locations: 15 | |
| Select Investors: TomorrowVentures |
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Dig Inn Seasonal Market |
|---|---|
| Dig Inn Seasonal Market aims to democratize the farm-to-table movement by offering locally sourced, seasonal ingredients in ther meals at a reasonable price. | |
| HQ Location: New York, NY | |
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Total Funding : $21.5M |
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| # of Locations: 10 | |
| Select Investors: Wexford Capital, Monogram Capital |
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b.good |
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| b.good focuses on “real food” which includes sourcing from “real people, not factories”. Their main products are healthier burgers, salads, and shakes. | |
| HQ Location: Malden, MA | |
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Total Funding : $8.54M |
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| # of Locations: 18 | |
| Select Investors: Undisclosed |
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Epic Burger |
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| Epic Burger is the contempory version the classic American burger joint. Their mission is to serve non-processed, all natural food at a reasonable price, starting with their hamburgers. | |
| HQ Location: Chicago, IL | |
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Total Funding : $7.32M |
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| # of Locations: 7 | |
| Select Investors: Cue Ball Capital |
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Just Salad |
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| Just Salad serves health, fast, and creative food alternatives that are made from local, organic, and non-GMO ingredients delivered every morning. They mainly serve salads, sandwiches, and bowls. | |
| HQ Location: New York, NY | |
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Total Funding : $6.0M |
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| # of Locations: 22 | |
| Select Investors: Undisclosed |
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Lemonade Restaurant Group |
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| Lemonade is best described as a modern cafeteria serving seasonal SoCal comfort food. Guests grab a tray, pick the portion size, choose from a buffet of healthy prepared dishes | |
| HQ Location: Los Angeles, CA | |
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Total Funding : $6.0M |
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| # of Locations: 16 | |
| Select Investors: KKR, The Horowitz Group |
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