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Fast-Casual Chains Expand into Small-Town America, Bringing Big-Name Eateries to New Markets

Food and Beverages

Business Honor
21 August, 2024

Chipotle, known for its focus on healthy, fresh ingredients, is leading the charge, opening new locations in areas once dominated by fast-food giants

Big restaurant chains like Chipotle, Cava, and Panda Express are increasingly setting their sights on small-town America. In places like Bennington, Vermont, and Somerset, Pennsylvania—towns with populations around 15,000—these chains are filling voids left by the decline of family-owned eateries. Chipotle, known for its focus on healthy, fresh ingredients, is leading the charge, opening new locations in areas once dominated by fast-food giants.

The trend reflects a shift in consumer preferences, with more people seeking healthier dining options even in smaller communities. Chipotle’s "Chipotlane" digital order pickup format has proven particularly effective in these markets, helping to offset the lower traffic compared to urban locations. Meanwhile, Cava and Panda Express are also entering smaller markets, offering Mediterranean and American Chinese cuisine, respectively, to diners eager for diverse food choices.

This expansion is driven by a combination of factors, including the saturation of urban markets, the lingering impact of the pandemic on independent restaurants, and the availability of cheaper land and labor in small towns. While these brands face unique challenges in smaller markets, such as the need for greater community engagement, their presence signals a broader trend of fast-casual chains reshaping the culinary landscape in America's heartland. As these chains continue to grow, more small-town residents may soon find themselves with big-city dining options close to home.