Casual dining chains, think Red Lobster, are plotting comebacks

Casual dining chains are in comeback mode after one of the toughest periods in decades, The Wall Street Journal writes. 

Red Lobster, Cracker Barrel and others are spending millions to refresh menus and revamp interiors—but balancing modernization with nostalgia is tricky.

Red Lobster’s young CEO has become the face of its turnaround, trading endless shrimp for equipment upgrades, cultural partnerships and a customer-first message. Cracker Barrel, under new leadership from a former Taco Bell executive, is pruning retail offerings, rolling out alcohol and dialing down the country clutter—prompting pushback from loyal fans. Both chains are chasing new, younger diners without alienating older patrons who have kept them afloat.

Bankruptcies hit record highs last year (excluding 2020), and while closures have slowed, many chains are still shrinking or shuttering locations. Chili’s and Texas Roadhouse are among the few standouts, drawing crowds with solid service, fun vibes and competitive pricing. 

Analysts say success in the sit-down space now hinges on value and experience over gimmicks. 

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