Full-service restaurants ran out of post-pandemic steam in 2023
While casual dining showed some improvement in 2022, the segment ran out of post-pandemic steam in 2023, a trend that has accelerated in 2024.
Retrenchment has been pronounced this year, as 2024 has seen high-profile bankruptcy filings like that of Orlando, Fla.-based Red Lobster and closures of underperforming units as in the case of Applebee’s Neighborhood Grill & Bar and Outback Steakhouse.
But the warning signs were clear in 2023. Lower-income consumers were increasingly trading down into fast casual and quick service as they dealt with concerns about the economy, and that chewed a bit off the overall sales numbers.
Overall, full-service brands on the Top 500 grew sales by 5%. While that seems positive, it’s outpaced by the 7.1% average increase in consumer prices.
Olive Garden, owned by Orlando, Fla.-based Darden Restaurants, ranked as the biggest casual-dining brand on the Top 500, coming in at No. 17 with 908 units and sales of $5.112 billion.
Lexington, Ky.-based Texas Roadhouse bucked the trend of closures and saw solid traffic in 2023, ranked at No. 19 with 638 units and sales of $4.784 billion. That was strong enough for it to overtake Applebee’s as the No. 2 casual-dining brand in America.
Applebee’s landed at No. 23 with $4.357 billion in sales at a year-ended 1,536 units, and Chili’s Grill & Bar, a division of Dallas-based Brinker International, ranked No. 24 with sales of $4.023 billion at 1,230 units. Buffalo Wild Wings, a division of Atlanta-based Inspire Brands, ranked No. 25 with 2023 sales of $3.958 billion at 997 units.
Outback Steakhouse was at No. 33 in Technomic’s 2023 rankings, posting sales of $2.83 billion at 688 units.
The other casual-dining brands to be included in the Top 50 were LongHorn Steakhouse, The Cheesecake Factory, Red Lobster, and Red Robin Gourmet Burgers.
Meet the 2024 Top 500: The biggest restaurant chains in America
All data courtesy Technomic Ignite Company data. Looking for more data? Click here to access the complete Technomic Top 500.
Contact Ron Ruggless at [email protected]
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Red LobsterApplebee’s Neighborhood Bar & GrillOutbackOlive GardenTexas Roadhouse Inc.Chili’s Grill & BarBrinkerBuffalo Wild WingsInspire Brands Inc.LongHorn SteakhouseThe Cheesecake FactoryRed Robin Gourmet Burgers and Brews
