Fast Food Diners Shift to Casual Chains

Casual-dining chains are seeing an influx of customers disillusioned by higher fast-food prices, said the Olive Garden parent Darden Restaurants' Rick Cardenas, during a Thursday earnings call, reports CNBC.

Department of Labor data shows that, as of May, full-service menu prices rose 3.5 percent over the previous 12 months, while limited-service eateries grew 4.5 percent over the same period.

On the call, Cardenas told analysts that industry data is showing “a little bit of a shift from [quick-service restaurants] to some of those competitors” in casual dining.

Although Darden has not yet benefited from the shift, other casual dining chains are calling out high fast-food prices to win customers. Dine Brands CEO John Peyton recently told CNBC that Applebee’s has been leaning into deals to win over fast-food diners. Additionally, Chili’s recently introduced an ad campaign targeting fast food burgers, including the Big Mac, focusing on its elevated price.

Darden is leveraging television advertising and maintaining prices lower than inflation to attract customers, according to the report. Full Story