Why fast casual chains like Chipotle and Cava are losing their freshness

"While everyone complains about the commute and annoying coworkers, a sneaky startling part of the return-to-office wave is how expensive slop bowls and sad salads have gotten. The colloquial name for the classic weekday lunch options would indicate a low price point, and yet, one can easily find themselves shelling out $25 on a random Wednesday afternoon for a dispiriting pile of vegetables, grains, and a protein or two, wondering if 37 is too old to get a sugar daddy and quit this stupid corporate life for good."

"Traffic at Chipotle, Cava, and Sweetgreen locations has declined this year. Their stocks aren't doing too hot, either. People are starting to take notice and formulate theories about their fall from grace. Maybe it's a sign the economy is finally breaking. Maybe it's really about the troubles of Democratic cities and issues with international tourism and immigration. Maybe it's just that the guacamole scoops are too small."

"The thing is, these bowls are just way too expensive for what they are, or, at least, what consumers perceive them to be. Among the low-cost, lousy options for lunch, the fancy ones carry a hefty price. If people are going to eat out, they may as well go somewhere they can sit down and be waited on. And the way things are going in casual dining, the price difference isn't that much - the lousy fancy places are looking increasingly affordable and attractive. See: Chili's."

Fast-casual bowl and salad options routinely reach $20–$25, eroding their appeal as inexpensive weekday lunches. Major chains like Chipotle, Cava, and Sweetgreen have experienced declining traffic and weaker stock performance this year. Observers attribute the downturn to a mix of economic weakness, urban-center challenges, changing commute and office patterns, and customer dissatisfaction with portions or perceived value. Rising prices make sit-down casual restaurants comparatively more attractive because they offer table service and a fuller experience for similar or only modestly higher costs. The restaurant market is seeing a compression between fast-casual and casual-dining price and value propositions.

Read at Business Insider