The fast-casual restaurant sector has experienced a notable rise in Australia, driven by shifting consumer preferences towards high-quality, convenient and affordable dining options. Notable brands leading the charge are Guzman y Gomez, a well-established Mexican fast-casual chain that recently made a significant milestone on the Australian Securities Exchange, and newly founded crispy chicken restaurant, Pappa Flock. From established players to newcomers, the sector is evolving to meet th
eet the demands of a dynamic market.
A new contender on the scene
Pappa Flock, founded in 2023, has rapidly expanded across Sydney, offering a unique spin on crispy chicken that has quickly gained popularity. The relatively new entrant in the fast-casual dining space has found success in attracting a loyal customer base, with stores designed to feel unique rather than replicated.
Collaborating with Central Coast artist Biffy Brentano on the store fit-outs and designs, Pappa Flock recently opened in Macquarie Centre Food Court, surpassing average daily sales within the first hour. On April 17, the brand plans to open its seventh location in Sydney’s Rouse Hill.
“This new location, with a capacity to seat 52 customers, will be an opportunity for us to reach families, foodies, and locals looking to satisfy their cravings with crispy crunchy tenders,” Pappa Flock’s chief marketing officer Rachel Korbel told Inside Retail.
One of the key drivers in Pappa Flock’s expansion is community engagement.
“Community engagement is at the heart of Pappa Flock’s growth strategy. While we serve American-style fried chicken, we are very much an Australian-born brand, and expanding our NSW footprint isn’t just about opening up new stores in new locations. It’s about embedding ourselves in local communities and creating experiences that are authentic with our customers,” Korbel said.
The appeal of fast-casual dining for landlords
While some fast-casual restaurant brands carve out a niche by prioritising strong community connections and, in return, earning positive responses from local consumers, others attract attention due to their strong financial performance.
GYG’s recent initial public offering and strong performance on the Australian Stock Exchange have signaled not only the financial vitality of the brand but also the growing appeal of fast-casual dining among both consumers and investors. In February this year, GYG announced its financial results for the half year ending in December last year, boasting a 23 per cent growth in global network sales to $578 million.
For landlords, the growing success of fast-casual brands represents a lucrative opportunity. According to Zelman Ainsworth, a real estate expert and the director of Ainsworth Property, fast-casual brands offer landlords a level of security that makes them highly attractive tenants.
“It brings with it a higher level of security, which de-risks the lease,” Ainsworth explained in an interview with Inside Retail. “As opposed to a small business operator that’s family-run, which brings a riskier element to any landlord.”
Ainsworth emphasised that fast-casual brands like Guzman y Gomez come with in-house resources and experience, making it easier for them to meet the complex requirements of operating a food establishment. This makes them an ideal choice for landlords seeking stability in their commercial properties.
“There is a lot of in-house talent, experience, and resources to deliver and maintain properties. Putting in exhaust services, power, gas, water, waste, liquor license, permits, planning… it doesn’t end unless you know what you’re doing, or know how to do it, or have the resources. This can delay handovers, delay trading, delay rent, and create a lot of issues and problems, which is often seen by private independent landlords and tenants.”
Ainsworth Property recently secured a significant lease with Guzman y Gomez at 260 Flinders Street in Melbourne. This prime location reflects the high demand for fast-casual dining spaces in central business districts and underscores the financial strength of brands like Guzman y Gomez, which are able to secure prominent real estate in competitive markets.
Smaller brands still have room to grow
Proclaimed to sit uniquely between a quick-service restaurant, which prioritises speed, and fast-casual, which prioritises freshness, Korbel described Pappa Flock as having the “fundamentals of a QSR; orders are received swiftly, and we offer great value with generous portion sizes and menu options under $5. However, we also offer consumers quality produce.”
“Our expansion in NSW reflects the love our customers have for our handcrafted menu made with high-quality locally sourced ingredients. The dynamic ways we connect with our community, especially through our playful social media presence and ‘secret’ menu items, set us apart and help us build engagement and loyalty,” Korbel added.
While larger chains like Guzman y Gomez offer financial security, Ainsworth noted that there is still room for smaller, independent brands in the fast-casual sector. He pointed out that these smaller brands can still thrive, particularly when they are part of a diverse retail mix that includes both large and small tenants.
“If you go into a well-rounded retail mix, you have both styles from [across] the spectrum,” he said.
As consumer demand for variety, convenience and quality in dining options grows, brands like Pappa Flock and Guzman y Gomez are on an optimistic trajectory to continue their growth and reshape the landscape of Australian dining.