The family dining segment (cheap sitdown fair) is a shambling corpse. They weren't doing well pre-COVID, because each successive generation is proving less and less willing to sacrifice food quality for table service. At the price point restaurants like Chili's, Applebee's and their ilk operate at ($15-30/head), you can get substantially better food at a fast-casual (above fast food, but no table service) restaurant, and people are clearly choosing to do so. Nicer sit-down restaurants (in the ~$40+/head price range) are still doing alright.
Then COVID hit, and "going out to eat" was pummeled: fast-casual restaurants weathered the storm alright-ish, because they likely already had a non-trivial takeout segment, and were attracting people based on their food. Family dining, who's main selling point is table service, were slaughtered.
The outlook continues to be bleak for them, since they're being squeezed out of the market: cut costs by making worse food, and they cement their laughingstock status, cut costs by cutting back on staff and they jeopardize what little remains of their customer demand, or raise prices and further reduce their value proposition versus going to a nicer sit-down restaurant.
Then COVID hit, and "going out to eat" was pummeled: fast-casual restaurants weathered the storm alright-ish, because they likely already had a non-trivial takeout segment, and were attracting people based on their food. Family dining, who's main selling point is table service, were slaughtered.
The outlook continues to be bleak for them, since they're being squeezed out of the market: cut costs by making worse food, and they cement their laughingstock status, cut costs by cutting back on staff and they jeopardize what little remains of their customer demand, or raise prices and further reduce their value proposition versus going to a nicer sit-down restaurant.