America’s casual dining ‘heydays are over’ as experts reveal next restaurant chains to rise and fall
FILE-A waitress carries food to a table inside a restaurant. (Michael Nagle/Bloomberg via Getty Images)
The struggles of several casual dining restaurant chains this year are the result of two trends that industry experts believe resulted in these businesses closing their doors.
Over a dozen restaurant chains, including Red Lobster, Buca di Beppo, Roti, BurgerFi, and TGI Fridays have declared Chapter 11 bankruptcy in 2024.
Experts tell FOX News Digital point to COVID-19 accelerating restaurant costs and patrons changing their dining habits. Analysts at Debtwire also think that the next eateries that could fall might be Hooters or Denny’s.
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"There's been a lot of speculation about the heydays of fast-casual, the heydays of casual dining and about all different restaurant concepts. It comes down, really, to the brand's specific price value equation. What is the guest getting versus what are they giving up?" Cotton Patch Cafe CEO Brandon Coleman – formerly of TGI Fridays, Dave & Buster’s, Macaroni Grill – told Fox News Digital.
"When we talk about the fast-casual dining heydays being over, it's really a certain type of restaurant that has been around for 20, 30, 40 years that many of us grew up with. And it's normal for a lot of those chains to turn over, over time," Debtwire executive editor John Bringardner shared with FOX Digital.
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FOX Business noted that Chapter 11 bankruptcy provides companies the time necessary to restructure and manage their financial debts while giving them an opportunity to rebound as a profitable business.
Bringardner estimated that Red Lobster had roughly $1 billion in debt and TGI Fridays, who declared bankruptcy in November, has over $300 million in debt.
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However, Bringardner and Coleman tell FOX Digital that several restaurant chains are still performing well under the casual dining format, including Chili’s, Chipotle, Wingstop, Cava, Texas Roadhouse, and Sweetgreen.
Coleman explained to FOX Digital that restaurants knowing what consumers want is the key to creating value for them, which can help with generating more business.