Yelp has recently released a report revealing the top 10 fastest-growing retail brands in the U.S. Interestingly, half of these top brands are owned by publicly traded restaurant companies. Yelp compiled the list using a blended metric that includes net new openings, searches on its platform, and consumer interest measured by page visits, posted photos, and written reviews. Out of the 50 fastest-growing chains mentioned in Yelp’s report, 35 were restaurant brands.
While popular restaurant chains like Jack in the Box, First Watch, and Dutch Bros were included in the report, they did not make it into the top 10. However, publicly traded retailers such as Levi Strauss, Nordstrom, and Costco did make the list.
Let’s take a closer look at the top 10 fastest-growing brands based on Yelp’s research:
1. Cava: This Mediterranean fast-casual chain went public through an IPO 10 months ago and raised nearly $318 million. Cava plans to use the offering’s proceeds for new location openings and general corporate purposes. With 30 net new locations opened in the second half of 2023, Cava aims to open at least 48 more this year.
2. Scooter’s Coffee: Founded in Nebraska in 1998, this Midwestern coffee chain has recently been aggressively expanding through franchised locations. Its small size and drive-thru-only concept make it cheaper to operate and quicker to build, helping the chain and its franchisees accelerate development quickly. Scooter’s net new locations jumped 53% from 2022 to 2023.
3. LongHorn Steakhouse: This Darden Restaurants steakhouse has consistently outperformed the restaurant industry’s average since the pandemic began. Its sales have been fueled in part by the strong growth of its takeout business. Parent company Darden plans to open at least 50 new locations across all of its brands in fiscal 2024.
4. The Habit Burger Grill: Yum Brands acquired this California-based burger chain in 2020 when it had less than 280 restaurants. Since then, Yum has been accelerating its development, and it now has 378 locations on the East and West coasts.
5. Wawa: Known for its convenience stores and gas stations, Wawa has been expanding outside of its Philadelphia stronghold into new markets down the Atlantic seaboard. It has also been opening drive-thru locations, encroaching further on restaurants’ territory.
6. Popeyes Louisiana Kitchen: Popeyes’ famous chicken sandwich has helped fuel its new restaurant growth in the U.S. and beyond. In 2023, Popeyes surpassed KFC as the second-most popular chicken chain in the U.S. by sales.
7. Freddy’s Frozen Custard & Steakburgers: This Midwestern fast-casual chain was bought by private equity firm Thompson Street Capital Partners in 2021. Under new ownership, Freddy’s has ramped up its development, opened restaurants in new locations like airports, and surpassed 500 locations overall.
8. Rally House: As the sole apparel retailer on the list, Rally House sells team gear and sports apparel for professional and college teams. It has been setting its own record for new openings and now has stores stretching from Pennsylvania to Arizona.
9. Olive Garden: The Italian-inspired chain is the gem of Darden Restaurants’ portfolio, accounting for nearly half of the company’s overall revenue. It opened about 20 new restaurants in its fiscal 2023.
10. Jersey Mike’s Subs: Jersey Mike’s is the second-largest U.S. sandwich chain after Subway. While most of its restaurants are now in California, Texas, and Florida, it is growing rapidly and reportedly looking for a buyer to further ramp up its development.
These top 10 fastest-growing retail brands encompass a diverse range of industries, including restaurants, coffee shops, steakhouses, convenience stores, and apparel retailers. Their growth is a testament to their ability to adapt to changing consumer preferences and deliver high-quality products and services.
Overall, the restaurant industry dominates the list, reflecting the strong demand for convenient and delicious dining options. As consumers continue to prioritize convenience and quality, these brands are well-positioned for continued success in the retail sector.
