Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a Placer.ai account? Log In
Back to The Anchor

Fine Dining Restaurants: Is 6:00 PM Really the New 8:00 PM?

R.J. Hottovy
Sep 29, 2023
Fine Dining Restaurants: Is 6:00 PM Really the New 8:00 PM?

Shake Shack founder and Union Square Hospitality Group chairman Danny Meyer made waves last week by asking “When did a 6:00 dinner reservation become the new 8:00, most prized table of the night— and will it last?"

danny_meyer_twitter_092823
Source: X.com (formerly Twitter)

Meyer got us thinking about daypart visitation shifts across the restaurant industry. There is no doubt that consumer behavior regarding restaurants has evolved the past few years. We’ve previously looked at changes in daypart visitation trends for Starbucks and other specialty coffee chains due to evolving consumer behavior patterns (partly a byproduct of work-from-home and other hybrid work situations), with more consumers opting out of the morning commute coffee run in lieu of later morning or afternoon visits. However, Meyer’s comments gave us the opportunity to take a deeper dive at daypart trends at full-service restaurant chains.


Our conclusion? Meyer is spot on about a 6:00 PM reservation becoming the most prized table of the night. We looked at visitation trends by hour from June-August 2023 for some of the more prominent fine dining chains in the U.S. (The Capital Grille, Ruth’s Chris Steak House, Cooper’s Hawk, Saltgrass Steak House, Fogo de Chao, and Eddie V’s) and compared it with the same period in 2019. Across the board, our visitation data suggests that fine dining patrons are dining earlier– especially between 4:00-7:00 PM–and coming in less frequently after 8:00 PM.

fine_dining_092923

What’s driving the trend toward earlier visits? Meyer hypothesized three explanations: (1) work-from-home trends contributing to social isolation, which in turn is driving earlier visits; (2) a blurring of work and personal schedules; and (3) a “Netflix effect”, where there is more entertainment content than ever to get home to. We believe Meyer is largely correct in these assessments, but we have a few additional theories.


First, we agree with Meyer that work-from-home has been a major contributor toward the trend of eating earlier, but we believe increased schedule flexibility may also play a part. With office visits at about 65% of the level they were prior to the pandemic according to our August Office Index recap, employees have freed up time on their morning and evening commute, which in turn gives greater flexibility to dine at different times. Migration trends have also likely played a role. Fine dining restaurants skew more toward urban settings, where we initially saw population declines during the pandemic but have since seen an urban residential recovery in New York and other markets driven by younger families (Millennial and Gen Z households). We previously discussed this trend when looking at McDonald’s future whitespace opportunities, but with the increase in younger families in urban residential settings, there might also be increased demand for earlier dining times.

Schedule a Call

Required
Please enter your email
Required
Required

Thanks for reaching out!

I’ll be in touch soon

Go Back
Oops! Something went wrong while submitting the form.

R.J. Hottovy

Head of Analytical Research, Placer.ai

R.J. Hottovy, CFA has covered the restaurant, retail, and e-commerce sectors for 20 years as an equity analyst and strategist for Morningstar, William Blair & Co., and Deutsche Bank. R.J. also brings a wealth of experience with early-stage investments as a committee member for the IrishAngels / Vitalize venture capital group. Over the past three years, he advised over 50 food service companies on more than $200 million in early-stage capital raises and M&A transactions.

Schedule a Call
Related Articles

Black Friday’s Big Winner? Malls

Black Friday 2024 provided valuable insights into consumer behavior as we look ahead to 2025. Placer’s blog highlighted a +2.7% increase in Black Friday weekend visits compared to last year, with shoppers focusing on value while also seeking unique and differentiated products, evidenced by strong year-over-year trends at off-price retailers like HomeGoods, Marshalls, and T.J. Maxx. Pandemic-era categories like home furnishings and sporting goods may also be seeing signs of a resurgence.The standout takeaway, however, was the evolving role of malls. Mixed-use developments and placemaking, a key trend for malls heading into 2024, proved pivotal this Black Friday weekend. Open-air and indoor malls saw larger year-over-year visit increases (6.7% and 5.0%, respectively) than retailers across all property types (up 2.7%). This was a trend echoed by operators like Simon, further underscoring the mall’s continued relevance in modern retail.Retailers remain integral to malls, but seasonal attractions, entertainment options, and a more diverse tenant mix have transformed malls into community hubs and prime destinations for both residents and tourists. These attractions have a symbiotic effect, driving greater foot traffic to mall tenants compared to standalone stores of the same brands.Need evidence that this strategy works? Consumers are staying longer. Our data shows that open-air malls experienced a 7.2% increase in dwell time over Black Friday weekend, while indoor malls saw a 5.1% rise. As we've highlighted before, the longer consumers spend at a mall, the more likely they are to make a purchase.A strong box office undeniably played a role in Black Friday visit trends and dwell time. Our data shows a nearly 250% increase in visits to movie theaters this Black Friday compared to last year (below). However, the data also reveals that many malls with unique holiday attractions and effective marketing strategies experienced increased visits, indicating that mall traffic was driven by more than just blockbuster movies.Taken together, our data reinforces that malls have become more vital than ever to modern retail, evolving from traditional shopping hubs into multifaceted destinations that blend commerce, entertainment, and community experiences. Changes in tenant mix have introduced a diverse array of retailers, including digitally native brands, experiential stores, and unique local offerings, catering to broader consumer tastes. Increased visitor attractions, such as dine-in theaters, fitness studios, and immersive art installations, create compelling reasons that drive repeat visits for more than just shopping. Mall-focused events, from seasonal pop-ups to live performances, further enhance the draw by fostering engagement and creating a sense of occasion. This strategic evolution has positioned malls as essential anchors in the retail ecosystem, blending convenience and experience to meet the demands of today’s shoppers.

R.J. Hottovy
Dec 6, 2024