By Danielle Wiener-Bronner | CNN
New York — The baby boomers are not returning to restaurants, despite the temptations of unlimited breadsticks at Olive Garden and wooden rocking chairs at Cracker Barrel.
It has been more than three years since many restaurants closed their doors and customers started eating more meals at home due to the Covid pandemic. However, even now, some older customers are still hesitant to dine out, which is causing foot traffic issues for restaurant chains.
According to Cracker Barrel CEO Sandra Cochran, customers over 65 have not yet returned to dining out like they did before the pandemic. Initially, they stayed away due to health concerns, and now they continue to stay away due to inflation, as the over-65 age group tends to be more conscious of value. This is affecting Cracker Barrel’s traffic, which has declined across all age groups, though the younger cohort has fared better than the over-65 group. Other chains, such as Burger King, have also reported a decline in restaurant traffic due to higher prices.
Darden Restaurants (DRI), the parent company of Olive Garden, Longhorn Steakhouse, and Cheddar’s Scratch Kitchen, is also experiencing a decline in visits from older customers. Darden CFO Raj Vennam stated that the 55-plus demographic, especially those over 65, has not returned to pre-Covid dining levels. Darden’s overall traffic is also down compared to before the pandemic.
CEO Ricardo Cardenas explained that older customers, particularly those above 65, were more cautious due to Covid. While Darden would like to see these customers return more frequently, they are also focusing on the increase in younger consumers. The company has used its eClub to engage with customers and encourage them to visit Olive Garden.
In the latest quarter, Darden reported a 5% growth in sales at its restaurants compared to the previous year. The company’s share price has had some fluctuations during the pandemic but has seen overall growth. Cracker Barrel, on the other hand, has seen a decline in sales and its shares have fallen this year.
Both Cracker Barrel and Darden are embracing the changing landscape and trying to attract younger consumers. Cracker Barrel operates its restaurants with a traditional country store theme, while Darden focuses on offering more value and variety at Olive Garden.
Despite the challenges posed by the absence of older customers, both companies are adapting and striving for continued success.
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