For chain restaurants, a tough economy is creating new winners and losers

The tough U.S. jobs market is creating new groups of casual and fast-food restaurant winners and losers.

Like much else in the U.S. economy, the casual restaurant sector is increasingly bifurcating into a handful of winners and a growing group of laggards.

At issue are two seemingly irreconcilable challenges: Operating costs that continue to surge, forcing companies to raise prices in order to maintain their profit margins — and a consumer base anchored by low- and middle-income households that faces growing financial instability amid a weakening job market.

It’s led to pain for much of the chain restaurant sector — with some established but long-struggling brands announcing that they are exploring potential sales.

But as consumers' perception of value evolves, and their wallets tighten, some surprising stalwarts in the sit-down sector are making a comeback.

“That perception of affordable fast food has gone out the window,” said Alicia Kelso, executive editor of Nation’s Restaurant News, an industry publication.

https://www.nbcnews.com/business/consumer/restaurants-economy-chilis-chipotle-mcdonalds-rcna242257


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