Chain restaurants are attempting a cultural revival
Though Gen Z and millennials don't dine at mid-price spots as much as older generations, chains are desperately trying to capitalize on their yearning for youth and newfound spending power.
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You probably haven’t thought about Red Robin since the last time its “Yummm” slogan jolted you from a couch slumber. But the burger joint’s stock is enjoying a much-needed boost after the chain reported a rare swing to profitability last week.
Amid an overall downturn in consumer spending, Red Robin is one of a slew of casual chains trying to weave nostalgia into its broader comeback strategy (see: last year’s Red Robin x Juicy Couture tracksuit).
Another competitor, Chili’s, is channeling the good ol’ days especially well:
- A Saved by the Bell actress starred in a Chili’s ad campaign for margarita specials last month, and the chain opened an Office-themed location near Scranton, PA, in April.
- Viral TikToks of mozzarella stick cheese pulls helped the chain’s sales jump 31% last quarter and helped get “Chili’s back in culture again,” its parent company’s CEO said.
Children get older: Though Gen Z and millennials don’t dine at midprice spots as much as older generations, chains are desperately trying to capitalize on their yearning for youth...and their newfound spending power. A recent Rainforest Cafe pop-up at the Empire State Building reeled in thousands of diners looking to eat next to a giant plastic bird for the first time since childhood.
Many casual chains are still struggling. Hooters recently filed for bankruptcy, foot traffic is down at Outback Steakhouse, and despite its recent bright spot, Red Robin has lost more than $100 million in recent years.—ML
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