Restaurant Chains Expand into Consumer Goods Despite Rebounding Dining Out
Even as restaurant spending increases, chains like Popeyes and Buffalo Wild Wings are pushing into the consumer packaged goods market.
Restaurant spending in the U.S. rose 3.3% year-over-year in July, aided by cooling menu inflation and rising wages. Despite this rebound in dining out, several restaurant chains are continuing their expansion into the consumer packaged goods (CPG) sector.
Buffalo Wild Wings has partnered with Mars-owned Pringles to launch three chip flavors: Parmesan Garlic, Medium Buffalo, and Asian Zing, timed for football season. This marks the wing chain's second CPG venture, following a previous collaboration with Slim Jim.
Popeyes launched a line of bake-at-home biscuits in May, now available at retailers like Walmart, H-E-B, and select Target stores. This move follows the chain's prior efforts to sell grocery items, with CMO Matt Rubin stating it allows fans to "celebrate the Popeyes brand beyond our restaurants."
These expansions indicate a strategy by major restaurant brands to maintain presence and engage consumers through CPG products, even as in-restaurant traffic recovers. This dual approach aims to capture revenue and brand loyalty across different consumption occasions.