Restaurant Recovery Is Gaining Momentum
Even if a restaurant isn’t currently performing well, it could turn things around.
As the weather warmed up and vaccination rates increased, the restaurant business is approaching 2019 levels.
Compared to the same months in 2019, restaurant visits were down -10.4%, -7.8%, and -3.8% in April, May, and June, respectively, according to Placer.ai. If these trends continue, it’s possible the industry could experience a complete rebound by the end of the summer.
However, some brands are outperforming the overall industry and have surpassed 2019 levels. For example, Placer.ai points to Darden Restaurants as performing exceptionally well. In June, visits to Darden brands Longhorn Steakhouse, the Capital Grille, Eddie V’s Prime Seafood, Bahama Breeze, and Seasons 52 were up 18.9%, 19.8%, 28.5%, 3.9%, and 5.7%, respectively. Another strong performer in June was Texas Roadhouse, where visits were up 16.8% compared to June 2019.
Even if a restaurant chain is struggling, don’t discount a turnaround in the near future. Placer.ai points to chains, such as Fleming’s Prime Steakhouse & Wine Bar and Seasons 42, that posted substantial June numbers despite seeing a double-digit visit gap just two months before. “This means that casual dining chains still seeing declines could find rebounds, especially those well aligned for the summer and Back to School seasons,” according to Placer.ai.
While higher-end restaurants are still doing well, diners and casual neighborhood eateries are still struggling to lure customers back. Some chains, including Chuy’s and IHOP, performed worse in June than in May compared to those same months in 2019. Still, Placer.ai says the visit gap is narrowing month after month.
“Perhaps the success of the higher-end concepts coupled with the slower recovery of diners and fast-casual chains means that customers are currently gravitating towards pricier, more festive restaurants to celebrate the return to normalcy, according to Placer.ai. “Over the next couple of months, lower-end chains may well catch up as the novelty of dining out fades and customers return to their pre-pandemic haunts.”