As twenty-somethings flock to Five Guys Burgers and Fries, eateries such as Applebee’s, Ruby Tuesday Inc. (RT) and Chili’s are trying to win them back with “Girls’ Night Out†parties, new menus and rehabbed stores.
Already struggling to revive sales in the wake of the recession, Brinker International Inc. (EAT)’s Chili’s and DineEquity Inc.’s Applebee’s risk losing young professionals unless they remake themselves, said Brad Swanson, who runs the restaurant group at KeyBanc Capital Markets Inc., an investment banking and equity research firm.
“If you have a little bit of money and you’re educated, you want a boutique feel, less chain,†said Swanson, who is based in Atlanta.