Restaurant stocks have been struggling this summer, though it’s not quite clear why.
As Seeking Alpha reported Sunday (July 21), weakening consumer confidence and consumer spending are likely the key reasons, though there could be another reason diners might be shunning quick-service restaurants, or QSRs.
“Heading into Q2 earnings, we believe sentiment for restaurants is the poorest since GLP-1 concerns gripped the industry late last summer,” BTIG’s Peter Saleh said in a research report, referring to weight loss medications.
He added that the weakness is understandable this time “as the price wars are intensifying amidst significant social media backlash.”
That backlash started last October, when Starbucks faced pressure connected to the Hamas attack on Israel. Then came allegations of price gouging by McDonald’s and inconsistent portions at Chipotle.
“Clearly, consumers are disgruntled by the value proposition across the industry and are pushing back,” Saleh said.
This loss of the “value proposition” which gave QSRs their competitive edge over fast-casual restaurants suggests a “deep and prolonged price war” among not just QSRs, but also with casual dining and fast-casual eateries.
As consumers cut back, restaurants are employing new measures to connect with their consumers, including in virtual spaces. Earlier this month, QSR chain Whataburger announced the debut of its first tournament within online video game Fortnite, where consumers compete to win cash prizes.
And earlier this year, fast-casual brand Wow Bao partnered with game platform and game creation system Roblox, integrating the platform with its rewards program to enable consumers to earn coupons for physical food items through virtual play.
“By connecting the Roblox community with our online ordering channels and rewards program, we are inviting new customers to experience our brand, rewarding our most frequent guests, and embarking on something that has never been done,” Wow Bao president and CEO Geoff Alexander said in a statement.
“By launching these experiences within popular games, these eateries aim to engage younger audiences in a dynamic environment that offers a degree of immersion that traditional advertising cannot equal,” PYMNTS wrote.
And consumers are willing to experiment with experiences that meld purchasing with their leisure routines. The PYMNTS Intelligence study “How We Will Pay Report: How Connected Devices Enable Multitasking Among Digital-First Consumers” found that, of the 76% of consumers who multitask while engaged in leisure activities, 27% do so to make purchases from restaurants.
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“The currency of now” takes on a decidedly different form in this poem about the mall’s resurgence. It celebrates the brick-and-mortar comeback fueled by Gen Z’s desire for IRL (in real life) connections and the evolving role of physical space in a digitally-driven world. Join us, with a little help from AI, as we examine this retail revolution, where the “currency” of cool reigns supreme.
The tinsel’s gone, the carols now hushed,
New Year’s returns — cashiers mildly crushed.
A sea of sweatpants, gift cards in hand,
The mall’s a vibe unplanned.
But fear not, dear shopper, the story’s not bleak —
The mall’s plotting comebacks, not just peak weak week.
Gen Z’s in the food court, TikTokking their fries,
While swiping through Depop for vintage thigh-highs.
“IRL’s better!” they might say, “No porch pirates, no wait—
Just tag me @Aritzia, I’ll meet you at eight!”
They crave neon selfies, not screens’ pixelated glow,
So malls built a skatepark where a Sears used to go.
Shopify’s merchants now hawk leather and lace
In pop-ups by Simon — no “online-only” space.
Leap powers the kiosks, the QR code deals,
As D2C brands test if foot traffic feels.
Where Macy’s once stood, now micro-lofts bloom:
“Live above Lululemon!” they might chirp. “Bath bombs in every room!”
A dentist, a daycare, a co-working hub —
The mall’s now a Swiss Army knife, scrubbed of ’80s dud.
Mall of America’s got waterslides looping its floors,
While American Dream’s got a ski slope indoors.
“Why choose between Zara and ziplines?” they could grin,
As Nordstrom becomes Saks Fifth within.
Phones glow like fireflies in this retail ballet:
Price checks on Google, then “U up?” on Tinder (hey).
They scan, they compare, they Instagram the ‘fit—
But still buy the jeans ’cause the vibe’s so legit.
So here’s to the mall — that phoenix of bricks!
No longer a relic of cassette tape tricks.
With Gen Z as hypebeast and Shopify’s might,
It’s part TikTok backdrop, part urbanist’s right.
The future’s bright, chaotic, a bit over-leased …
But hey — at least parking’s finally decreased.