2024 was a year of destruction for casual dining

TODAY’S STORY

‘Value’ was the most popular buzzword for chain restaurants in 2024 as they tried to win back consumers eating more at home. One segment of the restaurant industry consumers do not see enough value in is the casual dining segment. 

Casual dining is described as a sit-down restaurant that offers moderately priced food. But when you account for the increased prices post-COVID, having to tip 18-22%, the numbers are not adding up for most consumers.

According to Circana data, casual dining traffic through October 2024 had fallen 2% from the prior period. And when you look at the legacy chains in 2024, it's evident that they were struggling:

• Red Lobster went through a Chapter 11 restructuring

• TGI Friday’s filed for a Chapter 11 bankruptcy

• Applebee’s closed more than 30 locations

• Bloomin’ Brands, the parent company of Outback Steakhouse and Bonefish Grill, closed 41 underperforming stores in 2024 

Casual dining has been struggling for years to compete with fast food, and with many economists citing the tightening in the economy and consumer spending, I don’t think it will get better soon.

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Kieran & Justin Ryan