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 affordabl

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