Your browser does not support JavaScript!

US Restaurant Chains’ Growth Surge and Global Expansion Trends in 2024

General Report May 16, 2025
goover

TABLE OF CONTENTS

  1. Summary
  2. Sit-Down Burgers Challenging the Fast-Food Giant
  3. Ranking the 51 Fastest-Growing Chains of 2024
  4. Transatlantic Expansion: Dave’s Hot Chicken’s UK & Ireland Ambitions
  5. Conclusion

1. Summary

  • In 2024, US restaurant chains exhibited remarkable growth, both on domestic and international fronts. A notable shift in the competitive landscape saw sit-down operators, particularly Chili's, capitalizing on innovative burger promotions to capture market share from established fast-food giants. The remarkable growth within this segment was evidenced by Chili's nearly 15% increase in same-store sales for the most recent quarter, which concluded before May 16, 2025. This robust growth can largely be attributed to a well-executed promotional strategy surrounding its newly introduced burger, which effectively positions Chili's as a viable dining alternative amid rising fast-food prices that have burdened consumer budgets.

  • In tandem with this sales increase, a 6% rise in customer traffic at Chili's locations highlights a broader industry trend: sit-down restaurants are increasingly attracting patrons who traditionally preferred quick-service options. The marketing efforts of these establishments, particularly reflecting consumer frustrations with fast-food pricing, have resonated well with the target audience. Furthermore, Chili's successful campaign surrounding their Big Smasher burger, aimed at directly challenging McDonald's iconic Big Mac, not only drew substantial attention but significantly exceeded expectations in a highly competitive environment.

  • The growth landscape in 2024 was further illuminated by the ranking of the 51 fastest-growing restaurant chains, assessed meticulously based on sales performance, expansion plans, and brand innovation. Leading chains such as McDonald's and Starbucks demonstrated significant ambitions for global growth, with McDonald's eyeing 50, 000 restaurants by 2027 and Starbucks planning an additional 17, 000 locations by 2030. These expansions, coupled with unique offerings from chains like Chipotle and Raising Cane's, reflect a sustained interest in enhancing customer experiences and operational efficiency.

  • Additionally, in the ongoing expansion narrative, Dave's Hot Chicken is on track to make a significant foray into the UK and Ireland markets with plans for 60 new locations. This initiative underscores the growing appetite for American-style fast food in these regions, particularly as competitors like Popeyes and Chick-fil-A have already made substantial inroads. The strategic timing of Dave’s entry, with the first restaurant expected to open in London by early 2025, signifies a focused effort to establish a foothold quickly in competition-rich markets.

2. Sit-Down Burgers Challenging the Fast-Food Giant

  • 2-1. Chili’s same-store sales jump

  • In a significant development for the sit-down dining segment, Brinker International, the parent company of Chili’s, reported a remarkable nearly 15% increase in same-store sales for the most recent quarter, which concluded prior to May 16, 2025. This growth can be attributed to an effective promotional strategy centered around a newly introduced burger that directly competes with established fast-food options. The strategic positioning of Chili’s as a viable alternative to quick-service restaurants has resonated particularly well during a period when rising fast-food prices have strained consumer budgets.

  • 2-2. 6% traffic increase

  • Simultaneously, the same quarter also saw a commendable 6% increase in customer traffic at Chili’s locations. This surge in footfall is reflective of a broader trend within the restaurant industry where sit-down establishments are finding new opportunities to attract customers who might traditionally favor fast-food chains. Customer sentiment revealed through social media highlighted frustrations with fast-food pricing, which Chili’s successfully tapped into with their marketing efforts.

  • 2-3. Big Mac-style burger promotion

  • Chili’s launched a noteworthy advertising campaign for its Big Smasher burger, which is billed as a direct competitor to McDonald’s iconic Big Mac. Priced at $10.99, the Big Smasher features a half-pound beef patty, coupled with familiar toppings including lettuce, diced onions, pickles, cheese, and Thousand Island dressing. Notably, while its presentation differs from that of the traditional Big Mac, this promotion has been highly effective in drawing attention and driving traffic. Brinker CEO Kevin Hochman remarked on the successful reception of the Big Smasher, which significantly outperformed expectations amid a climate of competitive pressure from fast-food rivals.

  • 2-4. Brinker International’s strategic pivot

  • Brinker International's strategic pivot towards emphasizing value in their offerings has proven beneficial, particularly as they juxtapose their pricing against fast-food rivals such as McDonald’s, Burger King, and Wendy’s, which continue to encounter adverse performance in their sales metrics. While these fast-food chains have been compelled to initiate their own promotional campaigns in response, Chili’s strong quarterly results indicate a growing acceptance among consumers for sit-down dining as both an affordable and appealing option, especially as dining preferences evolve due to economic pressures.

3. Ranking the 51 Fastest-Growing Chains of 2024

  • 3-1. Methodology behind the growth ranking

  • The growth ranking of the 51 fastest-growing restaurant chains in 2024 was based on a comprehensive analysis of sales data, expansion plans, and market presence. The assessment prioritized brands that showed not just numerical growth but also innovation, adaptability in responding to consumer demands, and strategic geographical expansion. These methodologies relied on data sourced from market research firms and industry reports, ensuring accuracy and relevance. The ranking reflected chains that not only thrived in sales but effectively captured market share amidst fierce competition.

  • 3-2. Top performers and growth rates

  • Among the top performers in 2024, chains like McDonald's, Starbucks, and Wendy's demonstrated significant growth rates. McDonald's revealed ambitious plans to expand to 50, 000 restaurants globally by 2027, marking a historic growth surge. Starbucks aimed to open an additional 17, 000 locations by 2030, reinforcing its position as the leading coffee chain worldwide. Wendy's introduced its Global Next Gen restaurant design while planning over 200 new openings in 2024, aligning its growth strategy with advanced customer service capabilities.

  • Other noteworthy brands included Chipotle, set to open 285 to 315 new restaurants, and Raising Cane’s, which planned 90 new locations in 2024. Each brand exhibited growth not only in numbers but also in enhancing customer experiences and operational efficiency, thereby solidifying their competitive advantage in the market.

  • 3-3. Segment breakdown (fast-casual vs. quick-service)

  • The analysis of market segments unveiled distinct performance trends between fast-casual and quick-service restaurant chains. Fast-casual chains showed resilience and innovation, with brands like Chipotle and Cava leading in the segment by focusing on higher quality ingredients and customer engagement through digital platforms. Meanwhile, quick-service chains, led by giants like McDonald's and Starbucks, benefited from their established market presence and streamlined operations, amplifying their rapid expansion capabilities.

  • This segment differentiation emphasized the shifting consumer preferences toward healthier and more quality-driven dining options without sacrificing convenience—an insight that proved critical for many chains aiming for sustainable growth.

  • 3-4. Role of nutrition and diet credibility

  • In the current landscape, the role of nutrition and diet credibility became paramount to the growth of restaurant chains. Increasingly health-conscious consumers demanded transparency regarding ingredient sourcing and nutritional content. Chains that embraced this trend set themselves apart as leaders in the rapidly evolving marketplace. For instance, brands like Chipotle not only prioritized fresh, organic ingredients but also communicated their commitment to healthy eating options effectively, resulting in increased customer loyalty and satisfaction.

  • Moreover, chains that marketed their products in alignment with dietary trends, such as keto, vegan, and gluten-free options, not only attracted a broader consumer base but also enhanced their reputations as credible options for health-oriented dining. This strategic focus on health and nutrition emerged as a significant factor influencing growth rates and customer preferences across the industry.

4. Transatlantic Expansion: Dave’s Hot Chicken’s UK & Ireland Ambitions

  • 4-1. Announcement of 60-unit rollout

  • In July 2024, Dave’s Hot Chicken made a significant announcement, detailing its plan to open 60 restaurants across the UK and Ireland. This ambitious expansion aims to capitalize on the growing appetite for American-style fast food within the region, especially following the successful entries of competitors like Popeyes and Chick-fil-A into the market.

  • 4-2. Timeline and site selection

  • Dave’s Hot Chicken is targeting an aggressive rollout strategy, with the first restaurant expected to open in London by the first quarter of 2025. This timeline underscores the brand's commitment to entering the UK market swiftly and effectively. The opening will coincide with Chick-fil-A’s planned market entry, which adds competitive context to the initial stages of Dave's presence in the area. The selection of London as the inaugural site likely reflects not only the city’s status as a bustling metropolitan hub but also its role as a focal point of culinary trends in the UK.

  • 4-3. Comparison with Popeyes and Chick-fil-A entries

  • Dave’s Hot Chicken’s entry into the UK follows in the footsteps of Popeyes, which commenced operations there in 2021 and has since opened over 38 locations, positioning itself as a strong player in the market. Comparatively, Chick-fil-A, which is also set to make its debut in 2025, has controversial past interactions in the UK due to previous closures after a temporary pop-up. The contrasting trajectories of these brands offer a glimpse into the competitive landscape of the fast-food sector in the UK, with Dave's looking to differentiate its offerings through its unique product lineup and flavor profile.

  • 4-4. Implications for local market dynamics

  • The entrance of Dave’s Hot Chicken into the UK market is poised to alter local market dynamics significantly. The brand is characterized by its distinct product offering, including jumbo hot chicken sliders available at varying spice levels, which could appeal to both adventurous eaters and established customers of spicy fast food. Collaborating with Azzurri Group, a notable entity in the UK hospitality sector, will likely provide logistical advantages and local expertise, thus enhancing the brand’s potential for rapid acceptance and success. Moreover, the increasing number of US chains opening in the UK may intensify competition and consumer interest in the fast-food category.

Conclusion

  • The performance of US restaurant chains in 2024 reflects not only a dynamic shift in consumer preferences but also a redefinition of competitive strategies within the fast-food landscape. The rise of sit-down dining alternatives, exemplified by successful promotions and innovative menu offerings from chains like Chili's, indicates an evolution in consumer dining trends. The resultant growth—evidenced by increased customer traffic and sales metrics—highlights a broader acceptance of sit-down dining as both an appealing and economically feasible option amidst fluctuating fast-food prices.

  • Moreover, the growth ranking of the fastest-growing chains reveals critical insights for industry stakeholders. Chains that have successfully harnessed data-driven strategies, innovative branding, and strategic market expansions have not only thrived but set a precedent for sustainable business practices. The push towards enriched customer experiences and operational innovation remains paramount in maintaining competitive advantage as the landscape continues to evolve.

  • As Dave's Hot Chicken embarks on its ambitious expansion into the UK and Ireland, its trajectory will serve as a bellwether for future international growth among US chains. The competitive dynamics anticipated with the entry of notable brands will undoubtedly reshape local market landscapes, possibly leading to intensified competition and heightened consumer interest. Looking forward, operators and investors must remain vigilant and adaptable, focusing on agile menu strategies, robust branding efforts, and meticulous market entry planning as crucial pillars for sustained success in an ever-changing industry.

Glossary

  • Same-store sales: A financial metric used to evaluate the performance of retail chains by comparing the sales of stores open for at least one year. This measurement is crucial for understanding organic growth without the influence of new store openings, as evidenced by Chili's nearly 15% increase in same-store sales for a recent quarter before May 16, 2025.
  • Brinker International: The parent company of Chili’s, known for its focus on casual dining. As of May 16, 2025, Brinker is recognized for successfully enhancing its market position through effective promotional strategies and innovative menu offerings amid rising competition from fast-food chains.
  • Promotional strategy: A marketing approach aimed at increasing customer engagement and driving traffic to restaurants through special offers, new product launches, and targeted advertising campaigns. Chili’s recent burger promotion illustrates a successful promotional strategy that capitalized on market conditions.
  • Fast-casual vs. quick-service: Two categories of restaurants distinguishing service levels and experience. Fast-casual restaurants, like Chipotle, focus on higher-quality ingredients and customer engagement, while quick-service chains, like McDonald’s, prioritize speed and convenience. This differentiation significantly affects consumer preferences and market strategies.
  • Dave’s Hot Chicken: A rising fast-food chain targeting the UK and Ireland for expansion in 2025. With plans to open 60 new locations, Dennis Hot Chicken seeks to capture the growing demand for American-style fast food, competing against established brands like Popeyes and Chick-fil-A.
  • Expansion: The strategic process wherein a business increases its operational footprint, often geographically or through opening new locations. Dave's Hot Chicken's ambitious plans for international expansion highlight the importance of growth in competitive markets.
  • Traffic increase: A metric reflecting the rise in customer visits to a specific restaurant or chain. The 6% increase in customer traffic at Chili’s serves as an indicator of shifting consumer behaviors and preferences, particularly among those who traditionally opted for quick-service dining.
  • UK market: Refers to the dynamic fast-food landscape in the United Kingdom, which has seen an influx of American-style chains competing for consumer attention. As of May 16, 2025, it offers a mix of established and emerging players, making it critical for new entrants to strategize effectively.
  • Market entry: The strategy employed by a company to begin operations in a new geographic area or market segment. Dave's Hot Chicken's targeted entry into the UK market exemplifies the challenges and opportunities present in establishing a brand in a competitive landscape.
  • Growth ranking: A systematic assessment of restaurant chains based on sales metrics, expansion plans, and innovation. As of the report period ending in 2024, this ranking is vital for understanding market leaders and emerging trends within the restaurant industry.
  • Nutritional credibility: The trust consumers place in a brand regarding the healthfulness and transparency of its food offerings. Amid rising health consciousness, chains that effectively communicate their nutritional standards can enhance customer loyalty and satisfaction.
  • Customer sentiment: The collective feelings and attitudes of consumers toward brands, products, or services, often gauged through social media and market research. Understanding customer sentiment is crucial for restaurants like Chili’s to adapt marketing strategies relevant to current consumer frustrations and preferences.

Source Documents