The Cheesecake Factory (CAKE) ended 2024 on a strong note unlike some of its competitors in the restaurant industry, which is suffering from an alarming consumer trend.
In The Cheesecake Factory’s fourth-quarter earnings report for 2024, it revealed that its comparable restaurant sales increased by 1.7% year-over-year during the quarter. It also generated $921 million in total revenues, which is 5% higher than what it earned during the same time period in 2023.
The boost in sales and profit comes during a time when many consumers are increasingly avoiding fast-food chains and restaurants to save money as they battle inflation and higher costs of living.
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It appears that this trend isn’t going away anytime soon. According to a recent survey from The Harris Poll and Flashfood, 81% of Americans said that saving money on food is a priority for them this year.
Also, 89% said that cooking at home not only saves money, but is a healthier option than eating out.
“Consumers are going to focus more on cooking at home as opposed to eating out or ordering from restaurants to save money,” said Flashfood CEO Nicholas Bertram in a press release. “This is an opportunity for retailers to think creatively about their tech offerings to make sure they enable the purchase of quality, nutritious and affordable food.”
The Cheesecake Factory revamps its menu
Amid this consumer trend, The Cheesecake Factory is making major changes to its menu, which is famous for containing 250 items, in an effort to attract more customers.
Food ready to serve at The Cheesecake Factory in the Mall of the Emirates, the US chain’s largest outlet with 526 seats.
The restaurant chain is axing 13 menu items, which include:
Everything Flatbread PizzaMushroom BurgerSeared Ahi Tuna SaladWhite Chicken ChiliSpicy Cashew ChickenBistro Shrimp PastaFried Shrimp PlatterPetite FiletFactory CombinationsLoaded Mashed Potato OmeletteTaco Dorados and EggsSkinnyLicious Lemon Herb Parmesan ChickenSkinnyLicious Spicy Shrimp Pasta
To lessen the blow for fans, The Cheesecake Factory is also adding roughly 20 new menu items. These new offerings include Honey Roasted Carrots, Seared Tuna Tataki Salad, Grilled Steak & Eggs, Asian Cucumber Salad, etc.
During an earnings call on Feb. 20, The Cheesecake Factory President David Gordon first teased that the company’s new menu has a wider range of price points.
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“This new menu has a great range of price points, everything from $12.95 to $31,” said Gordon. “So if you’re looking for value at a lower price point with an appetizer, it’s there or if you want some of the best steak treats you’ve ever had at $31, which is a great value if you compare that to a high-end steakhouse when it comes to what our offering is, we are meeting all those different price points.”
The Cheesecake Factory hops on a growing consumer trend
The restaurant chain will also be focused on adding a plethora of mocktails to its menu as more Americans develop a cautious attitude towards alcohol consumption.
“We are also focused this year on rolling out some incremental non-alcoholic beverages because that’s the one category, I think that the industry has seen a little bit of pressure in,” said Matthew Clark, The Cheesecake Factory chief financial officer, during a recent earnings call.
More Food + Dining:
Starbucks announces bittersweet change you will soon see in storesCostco confirms major change to its food court menuMcDonald’s menu change sparks sharp criticism from customers
According to a recent survey from Gallup, 45% of Americans believe that drinking one or two alcoholic beverages a day is harmful to one’s health. This is a six-percentage-point increase compared to survey results from last year and a 17-point increase compared to responses in 2018.
This change in attitude toward alcohol consumption may have recently negatively impacted alcohol sales in the U.S. as beer, wine and spirit sales dipped in 2024.
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