The Decline of Red Lobster Is the Decline of the Middle Class

[Algernon Moncrieff]

15. I sorta agree

Red Lobster, in particular, has been badly managed, and impacted by wild fluctuations in its two main products -- shrimp and lobster. Prices at Olive Garden have been creeping ever upward. I can tell you this: I live about a block from an OG, and they don't seem to hurt for business.

Three things:

1) During the Great Recession, I think many Americans learned that Chipotle/Panera/Five Guys offered a solid dining experience without the added expense of a tip to a server. "Acceptable" tipping has increased from the old 10-15% to 18-20% due to the failure of the hospitality industry to raise base wages. Eating at these places was like getting a discount over Chili's et. al.

2) Business travelers on expense accounts are often still working with a $40-$45 meal allowance per day for non-client meals (and in many cases - they have less). Chipotle/Panera/Five Guys offer a chance to stretch that dollar.

3) Americans are generally getting more credit card debt conscious. Remember that casual dining really didn't come about until the late 80s, when restaurants that were not "fine dning" started taking credit cards. At the same time, the late 80s was a time when credit cards became much more readly available. Red Lobster, Chili's, Applebee's, and Olive Garden (among many others) became very popular -- for business travellers, for family gatherings big and small, and for an increasing (then new) phenomenon; families with competing tme crunches among parents and kids eating out multiple times per week because no one had time to cook

As to your point about food quality, my counter argumenrt would be that most Americans do not live in the greater New York City area, where the little Italian place or the little Seafood joint, with really great food, is common. Many people, especially those who travel, will gravitate toward the chain restaurant that is a known-quantity. Trip Advisor and Yelp! have, to some extent, helped tip the balance back to local spots. Nevertheless, people tend to eat at places they know.