Restaurants have faced many challenges since the pandemic dealt the industry a massive blow.
In 2020, restaurants whose menus didn’t lend easily to delivery and takeout lost business as customers were barred from in-person dining. And once those restrictions were lifted, restaurants had a new set of problems to deal with.
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Supply chain issues battered restaurants in 2021, forcing many into unwanted menu changes. No sooner did those problems start to resolve when inflation started surging, eating into restaurants’ margins.
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These days, inflation isn’t on quite the same tear as it was back in 2022 or 2023. But it’s still forcing consumers to spend their money differently.
Now, a lot of restaurants are seeing less foot traffic as consumers make the smart but painful choice to spend less on dining and entertainment and focus their limited funds on essential bills. And many chains are making the difficult choice to close locations.
Earlier this year, popular breakfast chain Denny’s announced plans to close several restaurants in the course of 2025. Red Robin also shared plans to close between 10 and 15 locations this year alone.
Struggling restaurant chain’s decision will disappoint fans.
Image source: Shutterstock
One restaurant chain is hurting
While economic conditions have been tough on restaurants across the board, Dave & Buster’s has had a particularly rough go. The company recently reported disappointing results on its last earnings call.
Comparable store sales decreased by 9.4% during the fourth quarter of fiscal 2024. And the company is facing a world of uncertainty in the wake of shifting consumer spending patterns.
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During the call, Dave & Buster’s acknowledged that its previous leadership team’s changes to the chain’s operations and menu hurt its bottom line. The company said it’s committed to improving and is working to address past mistakes.
Kevin Sheehan, Interim CEO, explained that the company’s new approach is to minimize changes and get back to basics. The goal is to improve the customer experience by focusing on proven strategies, like the Eat & Play Combo, to drive growth.
Dave & Buster’s walks back remodel strategy
In an attempt to attract more customers, Dave & Buster’s had previously announced a major remodeling strategy that focused on a revamped dining experience. The company had also shared plans to refresh most of its restaurants by 2026.
But given disappointing earnings and general economic uncertainty, Dave & Buster’s is rethinking that plan. Now, Sheehan says, the company will move forward with its remodel strategy, but at a slower and more targeted pace.
“There is no doubt that an effective remodel program should deliver high returns on investment and drive meaningful same-store sales growth,” Sheehan said.
Related: Restaurant chain famous for huge menu makes major cuts
Dave & Buster’s is also thinking of different ways to offer customers a better gaming experience. The company is testing ways to extend play time for guests while maintaining its margins.
While some fans love Dave & Buster’s for the all-in-one gaming and dining experience under one roof, critics are often quick to complain about the high cost of game credits and the restaurant’s sub-par food quality.
A big part of the problem is that Dave & Buster’s has long suffered an identity crisis. It wants to position itself as both a family destination and an adult arcade. Unfortunately, its failure to pick a side has been costly.
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For this reason, it’s a positive thing that Dave & Buster’s is scaling back remodeling plans.
But while that may be the more prudent move for the company’s bottom line, fans may be disappointed to learn that Dave & Buster’s won’t be getting a much-needed refresh across the board. And if economic conditions worsen, more people might make the decision to spend their money elsewhere.
Still, this pivot may be what Dave & Buster’s needs to stave off bankruptcy — a fate to which many restaurant chains have fallen victim in recent years.
