Our industry tends to be plagued with not-so-good headlines. If you’re interested in restaurant closures or challenges in the supply chain, open a browser. So, it’s nice when good news finds its way through the cracks and crevices of our somewhat taxing landscape.
This week, three restaurant chains that have seen their share of hard times made the “good news” headlines. Here, we’ll explore what gives them reason to celebrate and how we can jump on the success-train bandwagon.
Applebee’s Is Gaining Ground
In the second quarter of 2025, Applebee’s same-store sales turned positive, rising 4.9%, and total revenue increased by 11.9% year-over-year. For those not following this brand’s downward trajectory, this is the first quarter since Q1 2023 that they experienced a positive turn in sales.
So, what is the magic turnaround wand? Three strategies stand out.
Value: Applebee’s headed in the value direction, gaining traction with their 2 for $25 menu. They also added a new entry each quarter, according to NRN. During the company’s earnings call, John Peyton, CEO, said, “Pairing new menu innovation with the 2 for $25 value platform is a key contributor to our traffic and sales growth.”
Delivery: With delivery becoming a core component of nearly every brand, most looking to increase sales focus on this aspect, and Applebee’s is no different. National campaigns played their part in a 7.6% year-over-year increase in off-premise sales. Average weekly sales per restaurant in delivery and takeout came to about $12,800.
Social Media: With their main competitor, Chili’s, making a sensational comeback, in part due to social media, it’s no wonder that Applebee’s looked to this avenue for growth. They’ve increased their engagement across all channels by triple digits, including Meta and TikTok.
First Watch Is Finding a Foothold in Delivery
First Watch has faced several headwinds, including negative same-store sales and a decline in traffic. They, however, did not go the value or discount route. Instead, they found refuge in third-party delivery. Q2 2025 saw same-store sales growth of 3.5%, its best growth since Q4 2023.
One tactic it took was lowering its DoorDash surcharge from 25% to 15%. This surcharge is above and beyond normal prices, making takeout or dining in significantly less expensive. The lower surcharge resulted in boosting the brand’s visibility and higher order volumes.
According to Restaurant Business, First Watch doesn’t relate to the consumer pullback and actually experienced its best Mother’s Day in its 42-year history as a brand. It’s also on a growth trajectory, with up to 64 new locations opening in 2025. This summer, it reached its 600-restaurant milestone by opening about one new restaurant a week, on average.
BJ’s Restaurant, Dessert, and Social Media
BJ’s has also faced its share of headwinds, including a Q4 slowdown that impacted off-premise dining. They, like many other restaurants, faced the challenge of rising labor, food, and energy costs and the fine line of increasing menu costs without affecting demand.
To decrease costs, they simplified the menu and embraced AI, specifically AI-powered scheduling designed to reduce labor costs. This forecasting tool helps them predict traffic patterns and adjust labor accordingly.
Their margin improvement initiative included reducing the investment cost for new builds by about $1 million. These margin improvements seem to be working, with the reduction in labor, food, operating, and occupancy costs resulting in over $35 million in cost savings on an annualized basis.
And then there’s their famous dessert.
BJ’s signature Pizookie features a warm, freshly baked cookie topped with vanilla bean ice cream. The warm, gooey cookie and cold ice cream, along with limited-time offers and various flavors, have made this dessert “world famous.” It’s become a fan favorite, with the Q2 Snickers Pizookie generating almost six billion earned media impressions.
About 22% of diners order the Pizookie Meal Deal, a $13 weekday combo that comes with a Pizookie and an entrée. They’re using this deal to entice guests to come in over the weekend, and it’s working. When they introduced a smash burger through the deal, it became one of the top menu items.
In an interview with FSR, Lyle Tick, CEO, described Q2 as a “killer quarter” with total revenue increasing 4.5% and same-store sales up 2.9%.
If we can tell anything from these heavy hitters in the restaurant industry, it’s that perseverance, change, and adaptation may be the key to not just surviving but thriving.
