By Heather Haddon

The reasons to eat dinner at home keep on coming.

Rising bills. A shaky job market. Menu prices that seem only to creep higher. Why not bank some leftovers?

While consumers cling to their kitchens, many restaurants are struggling. Traffic to restaurants is down 1.6% so far this year, and market-research firm Black Box Intelligence expects it to fall further in 2026.

Nearly two dozen chains and large restaurant-operating groups have filed for bankruptcy this year, according to BankruptcyData.com, which analyzed delinquencies from public companies and those with large liabilities. This year's total mirrors the high number of restaurant bankruptcies in 2024.

Denny's sold itself after the diner chain struggled to grow sales, and Pizza Hut might follow. Chains such as Noodles and Outback Steakhouse are closing restaurants and rethinking their strategies.

Some chains, such as Chili's and Texas Roadhouse, are boosting business. Here's what industry executives say works to fill seats, and what doesn't.

Offer good value

The good news: Restaurants aren't jacking up prices like they were in the years right after the pandemic. Bad news is, menu prices are still rising faster than supermarket price tags. That raises the pressure on restaurants to provide a better deal than consumers can find in their own kitchens.

Texas Roadhouse has kept diners coming with steak dinners priced around $20 -- including sides. Despite record beef prices, the chain says the deal is paying off. The percentage of orders that included steaks increased in the three months ended Sept. 30 from the prior year. Overall same-store sales rose 6.1%.

"They are recognizing the value of our steak offerings relative to what they can do at home," said Michael Bailen, Texas Roadhouse's head of investor relations, during an earnings call last week.

Cut through the noise

The airwaves are filled with restaurant promotions right now -- so many that industry analysts believe they are getting less effective and consumers are tuning them out.

Applebee's has had success hammering away at a specific message. The chain once advertised a range of deals, but this year refocused on a two-meals-for-$25 offer. The deal's flexibility helped lift visits to the sit-down chain over the last quarter.

"We want to make sure that we break through," said John Peyton, chief executive of Applebee's owner Dine Brands Global, in an interview.

Spiff it up

Bar and grill chain Chili's has been posting record sales. But before it emerged as a casual-dining star, parent company Brinker International sunk hundreds of millions of dollars to increase staffing, marketing and maintenance and repairs at its restaurants. Brinker prioritized the investments over dividends or share purchases.

Market-research firm Technomic said that diners are noticing the changes, with opinions of Chili's decor, cleanliness and ambience all improved from a year ago. An even bigger payoff: Chili's same-store sales jumped by more than 21% in its most recent quarter, Brinker said. The company is projecting sales to keep growing.

Other casual-dining chains are following Chili's lead. Outback Steakhouse owner Bloomin' Brands said this month that it was suspending its dividend as it puts $75 million into turning around its restaurants.

New eats on menus

Platters of bacon, eggs and hash browns have been around forever. While Denny's and other breakfast-centric chains have struggled, brunch specialist First Watch is bringing in customers with Power Breakfast Quinoa Bowls and Carne Asada Breakfast Tacos.

First Watch CEO Chris Tomasso said the chain is rolling out an updated menu that wraps in top-performing seasonal specials. It also helps that the chain's base of higher-income consumers aren't feeling as much financial pressure as other groups. An order of the chain's avocado toast runs around $12.99.

"[Our customers] recognize what we've done around the menu," Tomasso said in an interview. "We still have to bring it every day."

Mediterranean chain Cava aims to keep growing by serving harissa honey chicken and pita chips while more burger-centric rivals have struggled. "There is a sea of sameness out there," said Brett Schulman, Cava's CEO.

Winning on service

Companies are looking to improve their service after shifting their attention to to-go during the pandemic. Starbucks is investing hundreds of millions of dollars in increased staffing in cafes, additional barista training and ceramic dinnerware for in-store orders to improve the experience for customers.

At Panera, the sandwich and soup chain is putting a greater emphasis on getting customers' orders right and being hospitable. "Get the sandwich in the bag" is the motto, Panera CEO Paul Carbone said.

"We haven't focused on the guest as much as we need to," Carbone said during an industry conference earlier this week.

Panera is homing in on employee training and making sure orders have the right food and drinks in them before they are handed off to customers, he said.

Write to Heather Haddon at heather.haddon@wsj.com

(END) Dow Jones Newswires

November 14, 2025 12:00 ET (17:00 GMT)

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