Casual-dining chains like Red Lobster and another Darden property, Olive Garden, were all the rage in the 1990s but have faced decreasing traffic in nine out of the past 13 years. After the recession, consumers spent less money, so restaurants offered more promotions and value items. But this didn’t bring back the middle class. Instead, as Darden noted when it first announced the Red Lobster spinoff late last year, the chain’s customers were increasingly from lower-income groups. Higher-end consumers moved on to more upscale dining experiences. Places like Red Lobster and Olive Garden got lost somewhere in the middle.

Key Takeaways:

• Much of 2016 for the restaurant sector has been categorized by declining sales and traffic.
• For chain restaurants—and particularly the casual dining segment—the effect has been most pronounced, with brands shuttering stores and laying off employees as sales continue to drop.
• The sector has experienced eight consecutive months of declining sales—with only February showing positive sales growth—and traffic growth has trended down at an increasing rate since the beginning of 2015.

“While negative sales have been attributed to everything from poor weather to the presidential election, consumer preference for convenience may be negatively impacting the casual dining sector.”

https://www.fsrmagazine.com/chain-restaurants/are-we-witnessing-death-casual-dining