How Chile and Cheesecake Factory challenge consumers’ gloom and beat McDonald’s and Chipotle to their own game

Increasingly narrow economic conditions oblige consumers to reassess their expenses, including how much they spend to eat outside. According to the ipsos market research company, around a third of Americans have said that they have reduced restaurants and food delivery since the start of the year. This trend struck particularly hard catering restaurants.

McDonald CEO Chris Kempczinski recently suggested that its customers considered fast food to be too expensive, even if the company has doubled the value offers. Chipotle and Cava both missed Wall Street’s forecasts for the second quarter, and Wendy’s CEO, Ken Cook, said the channel was “not satisfied with our sales performance” earlier. Chipotle also pointed out a drop in sales at 4% comparable stores and a 4.9% drop in quarterly traffic in July.

Meanwhile, seated channels get a boost, in part because consumers see them as offering more value than regular fast food at the same price.

Chili’s led to a leap of 24% of sales with comparable stores in its latest report on results. Traffic invited to Chile’s locations also increased by 16.3% compared to the quarter. Its success is based in part on measures to refine its menu and invest more in marketing, said Kevin Hochman, CEO of the parent company of Chile, Brinker International.

“We are not the cheapest thing on the market,” said Hochman THE Wall Street Journal. “But because we have a proposal for total value that works – good food, excellent service and an atmosphere that people like – that’s why we win.”

Andrew Dickow, leader in food and drinks and retail consumption / retail practices of the Greenwich Capital Group investment company said that while people reduce their expenses to everyday meal, they favor experiences. For many, it means a seated restaurant.

“Inflation has reduced the perceived price difference between fast service and relaxed meals,” said Dickow Fortune. “Consumers can obtain substantial portions that can create” remains “for the family, which creates real value. When fast food is now expensive, the leap relating to relaxed catering seems smaller – and more justifiable. ”

Cheesecake Factory has also increased in this trend, with its stocks of around 70% in the last 12 months. Meanwhile, the stock of Darden restaurants of Olive Garden is up 45% over the same period.

The solid results for seated restaurants mark a turnaround after 2024 have seen the most bankruptcy for the sector from the pandemic. Now, even Applebee’s, which has long lagged back its peer peers quickly, has reported sales growth at the first quarter after eight consecutive drops.

Given that non -promotional prices between traditional fast food restaurants and seated restaurants are convergent, consumers are now looking more at full -service locations that can offer a more unique culinary experience for the same price, according to Mark Chambers, the chief of the retail sector at EY.

“Another key differentiator is the possibility of serving alcohol, and for some adults, the possibility of enjoying a drink with dinner means that relaxed meals feel as much greater when the costs of meals are comparable,” said Chambers Fortune.