Bringing young consumers back to casual restaurant chains

From Applebee’s to TGI Fridays, reinvention is the keyword as restaurants adopt new tech, newer menu items to court the Millennials.

When Applebee’s (a 38-year-old neighbourhood grill and bar restaurant chain that operates in the US, Latin & South America, Canada, Germany, Netherlands and the Middle East) announced that it was closing down 60-80 eateries this year, it was followed by sister brand IHOP’s announcement of shutting down 30-40 outlets. The reason was the same: a decline in traffic from Millennials and Gen Z, who were moving to trendier, tech-savvy and more health-conscious options.

Other chains like TGI Fridays and Buffalo Wild Wings too faced the same problem. And each of them is taking immediate action. They are moving away from their old, stale images and adopting an atmosphere that’s more fitting to younger consumers - craft cocktails, an atmosphere with picturesque menu items that is ‘Instagrammable’ and broader ordering services.

Other brands are finding new ways to incorporate technology and innovation into the dining experience, citing technology as the tool to court millennials. IHOP has beefed up its to-go mobile ordering. TGI Fridays is currently piloting an AI-driven virtual bartender program in its Texas restaurants.

Adapting to the changing world is one thing. However, businesses also have to keep in mind that they cannot afford to alienate existing consumers. Are the casual restaurant chains doing that?

Source : http://www.adweek.com/brand-marketing/younger-consumers-are-still-abandoning-casual-chains-heres-what-theyre-doing-to-fix-it/