[quote][b]Casual dining is in danger — and millennials are to blame.[/b]
Brands such as TGI Fridays, Ruby Tuesday, and Applebee's have faced sales slumps and dozens of restaurant closures, as casual-dining chains have struggled to attract customers and increase sales.
"Casual-dining restaurants face a uniquely challenging market today," Buffalo Wild Wings CEO Sally Smith recently wrote in a letter to shareholders.
According to Smith, these sit-down restaurants' struggles can be blamed on a frequently besmirched generation: millennials.
"Millennial consumers are more attracted than their elders to cooking at home, ordering delivery from restaurants, and eating quickly, in fast-casual or quick-serve restaurants," Smith wrote.
While blaming millennials has become a trend to the point of cliché in retail, Smith isn't wrong to zero in on younger customers' changing tastes as a major factor in casual dining's downfall.
"Now there's many, many options that people are replacing chains with," Victor Fernandez, the executive director of insights at the restaurant-industry tracker TDn2K, recently told Business Insider.
Many of these options involve cooking at home. Grocery chains are increasingly competing with restaurants, thanks to lower prices and perks such as pick-up and delivery, new technology, and trendy features like wine bars and to-go meals. And meal-delivery kits like Blue Apron are focused on getting millennials on subscription plans to persuade them to stay in and cook a certain number of days a week.
Convenience is also a factor, both when it comes to delivery and speed of service. And casual-dining chains are still playing catch-up regarding delivery.
"The only part of casual dining that's growing right now is the off-premise side," Bonnie Riggs, a food-service industry analyst for NPD, recently told Nation's Restaurant News.
Cheesecake Factory said earlier this year that it would expand delivery to half of its 194 US locations through DoorDash, a third-party service. TGI Fridays, Chili's, and Maggiano's Little Italy are all now on Grubhub, and Buffalo Wild Wings and Red Robin are testing the service. Outback Steakhouse is using third-party services and building one of its own.
While delivery clearly is a compelling option to offer, it isn't a simple service for restaurants to add. Customers often spend less when ordering delivery than they would when eating at casual-dining chains, most of which rely on alcohol orders to drive sales. In-house delivery means added complexities, paying drivers, and additional insurance costs. Using a third party could mean losing control over the food's quality.
More convenient chains have also drawn millennial customers away from casual-dining options.
The growth of fast-casual chains such as Chipotle and Panera have been especially harmful. These chains can offer lower prices to millennial customers, who are less enthused about spending more money just for the experience of sitting in a booth at a casual-dining joint.
The fast-casual industry grew by 550% from 1999 to 2014, The Washington Post reported. By 2020, the fast-casual market in the US is expected to reach $66.9 billion, according to the market-research company Technavio.
"They have more of a healthy perception, there's quicker service times," Wedbush analyst Colin Radke told Business Insider in March. "The healthiness and the speed of service — that's been taking market share from casual dining."
Trends aside, when Smith says millennials' tastes differ from what casual-dining chains can offer, she's avoiding a blunter statement: Casual-dining brands just aren't cool anymore.
"When you look at the alternatives out there in the marketplace today and who's creating buzz and creating excitement, it's gone away from chain casual dining," John Antioco, the former CEO of TGI Fridays, told Business Insider.
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http://www.businessinsider.com/millennials-endanger-casual-dining-restaurants-2017-5
Some people have no shame.
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Blaming millennials for everything seems to be the new fad among baby boomers. It only exposes their ignorance.
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The world changes, businesses can adapt or make way for other businesses that will.
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More like you cheap restaraunts are cutting corners and costs. Ie Montanas steakhouse cut all fancy cuts after reducing portion size and now just sell sirloin steaks at 30 dollars lol whos dumb enough to pay that shut down.
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Well I hate millennials as much as the next guy but this is ridiculous. Things change, businesses go in and out of business.
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Well shit, never actually thought about how mailing prepackaged ingredients to somebody's doorstep could kill a business. Thanks Obama. [spoiler]idfk[/spoiler]
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2 Respuestas"Is my business model outdated and out of touch? No, it's the consumers who are wrong."
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6 RespuestasTypical baby boomer CEOs, blaming millennials. for their own inability to adapt.
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1 RespuestaThis is something that this generation gets totally right. Caring about your food, where it comes from, and how much the experience is worth is a great thing. This article seems to only cover chains where as a lot of people these days are seeking out authentic local restaurants to get more seasonal, locally produced, and inventive meals made by local chefs for the same price or less than the chains. If I took a girl on a date I'd be embarrassed if I took her to an Applebee's or Red Robin. There are so many small, independent restaurants making so much delicious food these days with a much better atmosphere that going on a date to a chain restaurant just seems thoughtless. And thoughtlessness doesn't get you a second date. Or in my case (I'm married) my wife would be asking me why are we wasting date night here? [spoiler]I shouldn't post after a few beers. My posts seems to come out as rambling and disjointed...[/spoiler]
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5 RespuestasWow.... These CEOs are weak. Blaming millennials for the demise of a sick and dying industry that was sick and dying 10 years ago. Pathetic. When it says that these restaurants failed to stay "cool", that's a little closer to reality but still not it. I'm not a millennial, I wish I was lol, I'm 40 but what you guys are saying, is 100% true. These are the facts: $12 for a hormone fed, genetically altered, dried out burger AND paying a tip/wage to someone the restaurant should instead of making them some kind of food hobo. Food drink tip like $18 Versus 1 pound grass fed, no hormone shite $5 2 organic potatoes $1 1 organic bun $1 Trimmings etc for 5+ meals $5 You come out ahead and with 10x the quality. Another HUGE point a millennial made was the alcohol prices. 3-6$ for one beer or $6 for 6 beers. You do the math. And like another millennial said, the food sucks. I am constantly disappointed and sticker shocked at the same time when dining out so guess what? We stopped dining out except every once and a while we go to chipotle. 2 people, under $20 and the food is fantastic. Oh and it takes 45 seconds to get my food and no tip. Awesome.
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I'm actually proud of millennials for the first time in my life.
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1 RespuestaMaybe if those restaurants didn't suck.
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1 RespuestaNothing of value was lost.
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1 RespuestaEditado por pValue2010: 6/15/2017 1:30:42 AMI don't know if blame is the right word, as it implies these people are doing something wrong. There are simply different demands, and restaurants and businesses that don't adapt will rightly go under.
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Well, I can either pay 20 bucks at a marker and get 5 meals out of it. Buy beer at the liquor store, and watch whatever tv channel I want at home while I eat my dinner and drink. Or I can go to a chain. Food is more expensive and unhealthy, beer is 3x the price, and the tv is set on whatever they want. I might be sitting in the air conditioner, or next to the door, so every time someone comes in, I'm freezing. I might have a crying baby next to me. The server might do something to my food if it's prepared wrong and I ask for it to be redone. Then I have to give even more money to the person who asked me what I want. And I want to say, id rather tip the menu, who gave me the info. And I've been a server, so I know how tips work.
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13 RespuestasHence why millennials are the most overweight, entitled, and lazy generation in existence.
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Gonna have to say, this isn't really a knock on millenials. They're cooking their own food. Opting to save time and $. Not exactly millenials' fault that cooking is more accessible and time is a rarer commodity.
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So, in other words, their failing due to poor service? Alrighty then.
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Time is crucial now-a-days. Work hours are long and tiring. Can you blame someone who's been working a 10 hour shift for going home to relax and get a quick bite before he needs to go to sleep to repeat the same crap the next day?
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2 RespuestasThe only problem with millennials and BWW is their insistence on having their chicken done into McNuggets rather than eating them off the bone like they were made to do. The pansification of America continues.
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Mfw I'm single handedly keeping my local Applebee's afloat..
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2 RespuestasI don't get why people are saying applebees sucks, I -blam!-ing love that restaurant. One of the only restaurants that will cater to my Mom's 50+ food allergies. And their service is excellent.
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1 RespuestaThat's business for you. If it is better quality and more affordable, more often than not a person will rather eat at home or use a delivery service instead of dining out. I find it quite a shame though that my town's A&W went out of business back in 2003. I miss drinking their root-beer floats in those glass mugs of theirs. That was one of my most memorable childhood joys, going there with my pops for chili fries and the sort.
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TLDR, but if you -blam!- with my Denny's we are going to come to gloves
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Yea, sorry man, but if I have to pay an average of $12 for a plate of food at a casual restaurant that won't even fully feed me and is made with low quality ingredients so you can cut costs , of course I'll opt to eat at home/bring my lunch to work/ go to a local eatery that still gives a shit about quality and quantities and it's customer base instead of trying to maximize its profit by cutting corners. You want to compete? Give people a reason to go to your place instead of pointing fingers and bitching.
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Maybe they're losing business because they are bad.
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I go to Buffalo Wild Wings every Friday with 2 of the boys.