Major Dining Chains Push Forward with Expansion Despite Economic Challenges

[Sanjeev Advani]

Despite a challenging economic environment marked by inflation and slowing consumer spending, major dining chains like Taco Bell, Outback Steakhouse, and Applebee’s are pushing ahead with expansion plans.

Yum Brands—parent company of Taco Bell, KFC, and Pizza Hut—opened 894 new locations globally in Q2 2024, marking a 5% increase in total units from last year. CEO David Gibbs noted that while consumer spending is more cautious, the company remains optimistic about its growth prospects.

Bloomin’ Brands, which operates Outback Steakhouse and Carrabba’s Italian Grill, is also maintaining its investment in new openings. Despite a slight dip in sales, the company plans to open 40 to 45 new restaurants this year, including 15 new Outback locations.

Dine Brands Global, owner of Applebee’s and IHOP, is adapting to economic cycles with a focus on careful expansion. The company is strategically closing underperforming locations while scouting new sites, aiming for a balanced approach to growth.

Finally, Jack in the Box is expanding into new markets, including Georgia, with plans for up to 45 new franchise commitments in the Southeast. The company is also planning to re-enter the Chicago market with several new openings in the coming years.

Conclusion

In the face of economic uncertainty, these major dining chains are betting on strategic expansion as a way to navigate challenges and position themselves for long-term success.