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While the pandemic is weighing heavily on casual dining chains, the restaurant concept has also struggled to compete over the last decade, thanks in part to the aftermath of The Great Recession and the rise of fast-casual offerings. The latter, especially, proved detrimental to many casual dining chains' business models, as customers' tastes evolved beyond traditional sit-down restaurants.
California Pizza Kitchen is one casual dining brand that has already been forced to file for bankruptcy. While the chain blamed plummeting sales on the coronavirus,that some factors weighing on the casual dining industry predated the pandemic. The chain struggled to compete with cheaper fast-casual options, as well as attract customers who skipped trips to the mall in favor of staying home to watch Netflix or shop on Amazon.
"The Company now has to draw people out of the comfort of their homes and has lost a number of customers who would otherwise have dined at a CPK on impulse while out for other purposes," the filing reads. Get a personalized selection of top stories daily based on your preferences. Sign up now.
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