You already know that many brick-and-mortar retailers are struggling, but did you know that many sit-down restaurants are also facing tough times?
The restaurant industry has reported negative sales in 11 of the last 12 months, and traffic fell 3.4 percent in March, according to TDn2K, which tracks weekly sales from more than 26,000 restaurants and 145 brands.
Beyond that, 2016 was the worst year for restaurants since the recession—sales dropped 2.4 percent.
So, what’s the deal with restaurants? Fast-casual restaurants (think Panera) are become more popular and groceries are getting cheaper, which means more people are eating at home. Malls are struggling, which means less foot traffic at some restaurant locations. Young people especially like the convenience of fast-casual chains, such as Chipotle, which are easy to get in and out of quickly.
People are also looking for trendier places to spend their money, according to some experts.
“In terms of casual dining, a lot of it kind of comes down to the brands that are just kind of dated,” analyst Colin Radke told Business Insider.
Here are several restaurants that have seen declining sales recently—some are even closing locations.
1. Noodles & Company
It seems that pesto cavatappi isn’t doing so hot in some markets. Noodles & Company announced in February that it would close 55 underperforming locations at the beginning of 2017.
“The company’s financial performance has been adversely impacted by these restaurants, many of which were opened in the last two to three years in newer markets where brand awareness of the company’s restaurants is not as strong as in other markets,” according to a Noodles & Company announcement. “These restaurants have significantly underperformed the company’s restaurant averages.”
According to the most recent earning report, Chili’s revenues were down 2.9 percent compared to last year. Beyond that, stocks for Chili’s parent company reached their lowest price in nearly four years in late January.
In January, the company laid off 80 employees, its first large-scale layoff since 2009.
Good news, though. The company is planning to add craft beer to its menu and invest in new technology.
3. Outback Steakhouse
Bloomin’ Brands, the parent company for Outback Steakhouse, announced earlier this year that it would close 43 restaurants, including dozens of Outback Steakhouse locations. Sales fell 4.8 percent at Outback Steakhouses, according to a February update.