How 6 casual chains are boosting their value

Core Insights - Casual dining has experienced a significant turnaround in performance, becoming the best-performing segment in the restaurant industry as of August, after years of underperformance [3][4] - Major casual dining chains like Chili's and Applebee's have reported positive same-store sales growth, with Applebee's achieving a 4.9% increase in Q2 [2][6] - The shift in casual dining's success is attributed to value-driven strategies that have put it in direct competition with fast food and fast casual segments [2][3] Industry Performance - Casual dining has moved from being the second-worst performer in the restaurant industry to the best-performing segment, as indicated by Black Box Intelligence data [3] - The industry's success is not merely due to easy comparisons, as casual dining has shown consistent performance improvements over a two-year basis [4] Consumer Trends - Casual dining chains are focusing on affordability and smaller portion sizes to attract a diverse consumer base across different income levels [4] - Olive Garden's strategy of testing smaller menu items at reduced prices has resulted in traffic growth among consumers from all income brackets during its fiscal Q1 [4] Company Strategies - Applebee's has successfully returned to traffic growth by enhancing its value perception, primarily through its 2-for-$25 promotion [6] - The 2-for-$25 offering serves not only as a value proposition but also as a platform for menu innovation, with new entrees introduced to drive sales growth [7]