Newsletter Overview: In 2025, U.S. Quick Service Restaurants (QSRs) are facing uneven traffic and shifting consumer habits. To stay competitive, brands are leaning into high-growth segments like chicken, coffee, and Mexican concepts; scaling with innovative operations and technology; adapting to convenience-driven dayparts; and using bold, personality-driven marketing campaigns such as Zaxby’s “Sauce Boss.”
While overall traffic is down—especially at burger and sandwich chains—chicken, coffee, and Mexican QSRs have posted growth in early 2025. Still, visits per location declined across nearly every category, suggesting expansion may be outpacing demand. The lesson: operators should double down on menu innovation, loyalty programs, and measured site growth to build resilience and position themselves for stronger returns once customer confidence rebounds.
Chicken, Coffee, and Mexican QSRs Thrive
The first half of 2025 has underscored how uneven consumer demand is across the quick-service landscape. While burger and sandwich chains are losing ground, chicken concepts, coffee shops, and Mexican-inspired brands are holding their own, with modest but notable visit growth.
• Chicken QSRs had ~1.3% year-over-year visit growth in H1 2025.
• Coffee shops grew ~2.8%.
• Mexican-inspired QSRs also saw growth (~1.9%) in visits.
These segments highlight what today’s customers still prioritize: affordable indulgence, bold flavors, and functional routines like daily coffee. For operators, the takeaway is clear: leaning into categories and menu items that deliver comfort, convenience, and value can help mitigate broader traffic softness.
At the same time, the data signals a warning. Visits per location are falling, meaning expansion is moving faster than consumer demand. QSRs that chase growth without sharpening unit economics or innovating around loyalty risk spreading themselves too thin. The winning play is a disciplined one — measured real estate growth paired with menu creativity, strong digital engagement, and differentiated value platforms. Brands that invest in customer stickiness now will not only weather the current slowdown but also be poised to capture outsized share when traffic rebounds.
Many U.S. restaurant chains are growing well ahead of the industry average (~4% in 2025), driven by aggressive unit expansion, tech adoption, and strong consumer demand for value, convenience, and novel dining formats. Brands like Dave’s Hot Chicken, CAVA, Jersey Mike’s, Slim Chickens, and others are scaling rapidly by opening many new locations, revamping menus, improving operations, and expanding into new markets. Their growth strategies offer insights into what kinds of restaurant models are resonating most with diners in the current environment.
The Fastest-Growing QSR Chains—and the Risks of Rapid Expansion
The U.S. restaurant sector is seeing a noticeable divergence: while the average growth across all chains is modest (~4%), the fastest-growing ones are pulling well ahead. Chains such as Dave’s Hot Chicken (with plans for 80 new openings in 2025 and many more in the pipeline), Jersey Mike’s, CAVA, Slim Chickens, and others are achieving strong sales, rapid network expansion, and growing brand awareness. These are not just incremental advances; many chains are scaling both in the number of outlets and in market reach (new states, non-traditional venues, etc.).
A key differentiator is how these chains are combining aggressive expansion with operational innovation. Several of them are investing in technology (apps, digital ordering, connected kitchens), refining their franchise models, enhancing off-premises capabilities (drive-thru, delivery, carryout), and experimenting with flexible store formats. These moves help them deliver faster service, keep costs manageable, and remain relevant as consumer expectations evolve.
However, growth comes with its own risks. Scaling too fast without supporting infrastructure, consistent customer experience, or careful site selection can lead to dilutions in quality or margin pressure. In addition, as more chains compete using similar value and convenience levers, differentiation — in menu, brand, and experience — becomes important. For brands eyeing expansion, balancing speed with sustainable growth — through franchise strength, employee culture, tech investment, and maintaining brand promise — will likely separate winners from the rest.
Source: https://oysterlink.com/spotlight/fastest-growing-restaurant-chains-us/
Traditional mealtimes are blurring in the U.S., with convenience and indulgence driving foodservice decisions across dayparts. Off-premises dining and snacking dominate, while younger consumers demand personalization and flexible formats. Operators who pair speed with emotional value, making dining both easy and special, will stay most relevant.
Convenience, Indulgence Reshape Dining Dayparts
U.S. dining habits are shifting away from rigid meal structures, with consumers increasingly treating foodservice as an on-demand solution for convenience and indulgence. Breakfast and lunch remain routine-driven, but snacking has become a legitimate meal replacement for men, with four in ten diners saying snacks can form a satisfying meal. This fluid approach, especially among Gen Z and Millennials, creates opportunities for operators to innovate with portable, customizable, and mix-and-match offerings that fit into flexible lifestyles.
Off-premises channels continue to dominate, but pick-up has emerged as the most practical choice. Consumers prefer it over delivery and drive-thru due to cost and accessibility, reinforcing the need for restaurants to optimize mobile ordering, loyalty programs, and packaging that elevates the experience. Meanwhile, dayparts are increasingly shaped by mindset: mornings are about routine and affordability, afternoons about refreshment and productivity, and evenings about indulgence and reward. Aligning offers with these shifting motivations is key to driving frequency across the day.
For operators, the imperative is to combine speed and accessibility with an element of emotional value. Streamlined menus, tech-enabled personalization, and impulse-friendly snacks can capture sales throughout the day, but the experience still needs to feel special. As consumer expectations rise and mealtimes blur further, brands that balance practicality with indulgence — through innovation, loyalty incentives, and disciplined growth — will be best positioned to win consistent visits across multiple occasions.
Source: https://store.mintel.com/report/us-dining-out-dayparts-market-report
Zaxby’s “Sauce Boss” campaign introduces Omar Epps as a charismatic new character, blending style and humor to highlight the brand’s signature sauces.
Zaxby’s “Sauce Boss” Campaign Shines
Zaxby’s latest marketing initiative, featuring actor Omar Epps as the “Sauce Boss,” marks a significant departure from traditional fast-food advertising. The campaign showcases a stylish, confident character who embodies the brand’s commitment to flavor and flair. Epps’ portrayal adds a touch of sophistication and humor, setting the campaign apart in the competitive QSR industry.
The “Sauce Boss” character is not just a spokesperson but a cultural icon in the making. His presence in the campaign elevates Zaxby’s image, aligning the brand with contemporary trends and appealing to a younger, trend-conscious audience. The use of a well-known actor like Epps adds credibility and draws attention, making the campaign more memorable and engaging.
This strategic move reflects Zaxby’s understanding of the evolving marketing landscape, where authenticity, style, and personality resonate more with consumers than traditional advertising methods. By integrating a charismatic character into their branding, Zaxby’s not only promotes their products but also crafts a narrative that consumers can connect with, ensuring the campaign’s success in a crowded market.
Source: https://www.qsrmagazine.com/story/qsr-ad-of-the-month-zaxbys-sauce-boss-has-star-quality/
FAQ
Traffic across U.S. QSRs is uneven. Burger and sandwich chains are soft, while chicken, coffee, and Mexican concepts show modest visit growth. Visits per location are declining, signaling expansion may be outpacing demand.
Chicken, coffee, and Mexican-inspired QSRs are seeing year-over-year visit gains, bucking declines seen at many burger and sandwich chains.
Prioritize menu innovation, strengthen loyalty programs, pace real estate expansion, and invest in digital ordering, operations tech, and daypart-specific value to improve stickiness and unit economics.
Growing too fast can strain operations, hurt consistency, and pressure margins if site selection, staffing, and infrastructure lag behind expansion.
Personality-driven, style-forward campaigns help brands stand out, reinforce flavor and value platforms, and connect with younger audiences seeking authentic, memorable experiences.
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