GRILL
Alcohol is also a differentiator for daytime dining. Many concepts play to the boozy brunch crowd, including Keke’s, First Watch, Toasted Yolk and Ruby Slipper, making them destinations for large groups (and giving check averages a boost). Some daytime-dining brands do cater to a slightly higher-income consumer, which may be helping to insulate them from economic headwinds that have hurt other brands in the segment. But daytime dining’s biggest advantage over more traditional family-dining chains
may be an operational one. Narrower menus allow staff to focus on doing a few things very well, and the limited hours mean they get their afternoons free to pick up kids, pursue a hobby or even work a second job. And the restaurants’ strong unit economics mean they can offer competitive wages. At Eggs Up, that equation has helped the chain hire better people. “The lifestyle element of working at Eggs Up is really appealing,” Richardson said. The year was not all bad for breakfast- lunch-and-dinner concepts. Twenty-eight
unit Elmer’s Restaurants grew sales by 23.4% as it added four locations to its footprint in the Pacific Northwest. Out East, 68-unit Metro Diner grew by 9.7% and opened six new stores. But success stories like those were outweighed by significant struggles at chains like Shoney’s, where sales declined 21.1%, and Big Boy, down 9.3%. And among the very largest such brands— IHOP, Cracker Barrel, Denny’s and Waffle House—only Waffle House achieved positive sales, with 3% growth.
JULY 2026 RESTAURANT BUSINESS
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