Restaurants in the U.S. have had a difficult time over the past couple of years due to the pandemic issues, but according to the folks at EatThis, NotThat!, there are five chains making the biggest comebacks in the business.
- Applebees – founded in 1980, this chain has had numerous highs and lows over the years and suffered a slump in the 2010s, a busted re-branding effort in 2016 and an acquisition by IHOP, but president John Cywinski told FSR Magazine that “The brand is exceedingly well-positioned now to thrive, to flourish – use whatever term you want” and says that the franchisees are enthusiastic and the company is in the best shape he has seen in his five-year tenure.
- IHOP – IHOP took a hard hit during the pandemic with almost 100 restaurant closings due to declining sales and S&P Global Market Intelligence picked IHOP’s parent company Dine Brands Global likely to default on loans. However, the company has adapted and almost 25 percent of their sales are through takeout and delivery and is planning to launch tho new virtual brands – Super Mega Dilla and Thrilled Cheese, so look for good things coming for IHOP.
- Potbelly – Sales at Potbelly have declined for the past five years and reached new lows last year and also has lost 57% of its stock value since 2017. However, business has been improving with last quarter sales up over 30% and stockholders received a 21% return in the 12-month period. Potbelly expects continued growth and plans to have 2,000 restaurant locations operational in the next ten years.
- Golden Corral – This chain saw its locations decline from 483 in 2019 to 250 last year and some of those locations were operating as cafeterias instead of the usual buffets. Franchisees also had to wait on royalty payments and relief funding is still being considered. In 2022 the number of units is back up to 360 and sales are up due to third-party delivery providers. They also have plans for a casual sister brand, Golden Corral Steakhouse.
- Jack in the Box – Jack in the Box actually thrived during the pandemic as it grew its sales and attracted new and higher-income customers and increased its locations by 201. There are plans for more than 6,000 restaurants by 2030 and they intend to expand from a regional chain to a national presence.
Source: EatThis, NotThat!
Photo: Getty Images