Meanwhile, sit-down chains are getting a boost, partly because consumers see them as delivering more value than regular fast food for nearly the same price.
“We’re not the cheapest thing out there,” Hochman told The Wall Street Journal. “But because we have a total value proposition that works—great food, great service, and an atmosphere people enjoy—that’s why we’re winning.”
Andrew Dickow, leader of the food and beverage and consumer/retail practice for investment firm Greenwich Capital Group said while people are cutting back their spending on everyday meals, they’re prioritizing experiences. For many, this means a sit-down restaurant.
“Inflation has narrowed the perceived price gap between quick service and casual dining,” Dickow told Fortune. “Consumers can get substantial portions that can create ‘leftovers’ for the family, which creates real value. When fast food now feels expensive, the relative jump to casual dining seems smaller—and more justifiable.”
Cheesecake Factory has also seen a boost from this trend, with its stock up about 70% over the past 12 months. Meanwhile, Olive Garden owner Darden Restaurants’ stock is up 45% over the same period.
“Another key differentiator is the ability to serve alcohol, and for some adults, the option of enjoying a drink with dinner makes casual dining feel like a significantly greater value when meal costs are otherwise comparable,” Chambers told Fortune.