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What is the key demographic that eats Japanese and fast casual and how is the demographic changing?
Hello, and thank you for your request for demographic information for fast casual Japanese restaurants. The most useful sources were Business Insider, Gordon Food Service, and the Denver Post. In short, while we could find no studies showing the demographics of Japanese Fast Casual diners, we have found that Millennials are likely to be their largest customer base. You'll find a deep dive of my research below.
JAPANESE CUISINE IN THE US
Japanese is the fourth most popular ethnic cuisine in America (following Italian, Chinese and Mexican), and 84% of restaurants with Asian menus are fast service. FESMag quotes a Euromonitor analyst who says he expects "the sales growth for Asian fast food restaurants in the U.S. outpacing overall fast food in the U.S. through 2019." The analyst goes on to say that "the popularity of ethnic and spicy flavors has grown considerably in the United States in recent years, which bodes particularly well for restaurants specializing in Asian foods."
Life in the USA reports that is was the popularity of sushi that brought Japanese cuisine to the palates of mainstream America. They go on to report that while much of the Japanese cuisine available today is authentic, there has been some Americanization. California Rolls are one example and "the Japanese steakhouse and a number of westernized noodle concept restaurants may also be called a cultural hybrid."
MILLENNIALS LOVE FAST CASUAL
Millennials are the biggest consumers of fast casual dining in the US. A 2015 article in Business Insider reports that 69% of Millennials reported eating at a fast casual restaurant within in the three months prior to the survey. Only 62% of Generation Xers and 43% of baby boomers reported similarly.
MILLENNIALS LOVE GLOBAL CUISINE
Business Insider says, "this category is winning because consumers like to feel like they're getting great-tasting food for a good price." Many are also serving the food their biggest customer base desires. Millennials love global cuisine and are looking for "new or unique foods and flavors," according to an article on Gordon Food Service. The article cites a recent survey by market research firm Technomic that found that "cultural diversity is one of the most salient characteristics of Millennials" and that the group is "much more adventurous in their food choices." Foodservice Equipment and Supplies quotes Euromonitor analyst Drew Strommes as saying, "while Italian and Mexican food had been long-time favorites for many Americans, consumers are now branching out and experimenting with more adventurous ethnic varieties." Voice Of America reports that Millennials between the ages of 18 and 34 "tend to be the most enthusiastic about sampling new foods." Many of the most popular Fast Casual restaurants, like Chipotle, Noodles & Company, Shophouse Southeast Asian Kitchen, Qdoba, and Pizza Rev, fit this bill.
The Denver Post quotes author David Sax as saying, "Now your average person...watches the Food Network every night and can go online to get information that was once limited. They know sriracha, and they’ve seen Anthony Bourdain traveling to India. They’re much more exposed to these ideas than they would have been 20 or 30 years ago." The article points to Noodles & Company and their ethnic offerings, including Japanese and Indonesian inspired dishes.
MILLENNIALS LOVE CUSTOMIZATION AND HEALTY CHOICES
Millennials love FCRs like Chipotle, because they can customize their meals. Noodle houses and high-quality ramen are key examples of the trend. Foodable Network says "customization is the factor that makes ramen so attractive to many Millennials amongst other demographics." They go on to say that "evidence of ramen popularity can be seen all over social media, and much like sushi, is being adorned with ingredients true to Japanese taste profiles and some that are completely American." As of the 2015, article, "over two million posts on Instagram with the hashtag #ramen showing different but delicious looking versions demonstrate the point that people are eating it and sharing. To compare, #burrito yields just over 738k."
Business Insider reports that Millennials prefer to choose restaurants that offer healthy choices, with freshness, less processed, natural and fewer artificial ingredients ranking most important for the group. For Millennials, the concern is more about where the food comes from and how it was grown rather than calorie content. The social ethics of a company are also important to the group. For these reasons, Chipotle, with is responsibly sourced pork and local products, is very popular with the Millennial crowd.
THE DENVER EFFECT
Denver is one of the top destinations for Millennials, according to the Brookings Institute, and in 2015, The Denver Post declared its namesake city as something of a capital of Fast Casual. Chipotle, Smashburger, and Noodles & Company, among others, got their start in the Denver area. The Post quotes Darren Tristan of Technomic who says, "The Denver and Colorado market tends to be the type of person that is looking for something a bit better — natural, fresh and a bit healthier." They go on to say that "fast-casual is particularly popular with affluent consumers and millennials."
CONCLUSION
To sum it up, while we could find no reports specifically outlining the demographics of Japanese Fast Casual customers, there is strong evidence that Millennials, with their love of global flavors and desire to customize are, and will continue to represent, the majority of patrons for this market segment.
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