Some seafood-focused restaurant chains in the U.S., such as Orlando, Florida, U.S.A.-based Red Lobster and several chains operated by Tampa, Florida, U.S.A.-based restaurant group Bloomin’ Brands, have struggled in recent quarters, but many others are expanding, signaling a mixed outlook for the industry amid economic uncertainty.
Revenues for Bloomin’ Brands, which operates Outback Steakhouse, Bonefish Grill, Carrabba’s Italian Grill, and Fleming’s Prime Steakhouse & Wine Bar, among other chains, fell 1.8 percent to nearly USD 1.05 billion (EUR 939 million) in the first quarter of 2025. The company attributed the drop to the net impact of restaurant closures and openings and a decrease in comparable restaurant sales.
The company’s restaurant-level operating margin also declined 1.5 percent year over year in the quarter due to lower restaurant sales, as well as higher operating, labor, and commodity costs primarily driven by inflation, the company said.
Q1 was just the latest in a line of difficult periods for Bloomin’ Brands, which laid off 100 corporate employees and reduced menus earlier this year.
At Bonefish Grill in particular, which realized a sales drop of 4 percent in the first quarter of the year, Bloomin’ Brands has instituted turnaround efforts, including a new menu. The new “Chef-Curated Selections” menu is a “complete culinary experience, designed by our chefs to deliver balance and a symphony of flavor,” the company said.
New dishes include Parker’s Margarita Sea Bass with chef-crafted tequila lime sauce, jasmine rice, and asparagus; Bourbon-Glazed Salmon with a sweet and spicy glaze, roasted potatoes, and seasonal vegetables; Pan-Seared Ahi Tuna served rare and sliced with soy mustard sauce, jasmine rice, and a shaved kung pao brussels sprouts slaw; and Creamy Tomato Shrimp Linguine, which is sauteed with mushrooms and spinach and topped with parmesan cheese, diced tomato, and basil.
Numerous other seafood restaurant chains across the country, meanwhile, are expanding, such as some operated by Houston, Texas, U.S.A.-based restaurant group Pappas Restaurants.
Pappas, which operates more than 100 Pappadeaux Seafood Kitchen, Pappasito's Cantina, Pappas Bar-B-Q, and Pappas Bros. Steakhouse restaurants, acquired On The Border Mexican Grill & Cantina for an undisclosed amount.
Adding On the Border, which operates more than 150 restaurants across the U.S. and internationally, will expand Pappas’ presence in the Tex-Mex category by adding a nationally recognized concept that offers bold flavors at an accessible price point, the company said.
Elsewhere, Cousins Maine Lobster, which operates both brick-and-mortar restaurants and food trucks, is on track to open 30 units this year, the company said. It has a goal of reaching 100 locations by the end of 2025.
In 2024, Cousins Maine Lobster signed more than 30 development agreements with franchisees and expanded operations in Kansas City, Missouri, and Louisville, Kentucky. The company also recently added locations in Grand Rapids, Michigan; Oklahoma City, Oklahoma; and Milwaukee, Wisconsin.
Similarly, Irvine, California, U.S.A.-based Pokeworks, which has 70 locations in 20 U.S. states, is adding new locations in Texas and is making a “strong push” for franchise growth in the state, the company said in a press release.
Overall, large chain restaurant transactions saw improvement in March of this year, as transactions were flat compared to last March, according to market research firm Circana. The month prior, in February, transactions declined 4 percent year over year.
“March's performance is an encouraging indication of the restaurant industry’s strength and adaptability,” Circana President of Global Foodservice Tim Fires said in a press release.
Another positive trend for restaurants is the reduced tariffs between the U.S. and China, which DNR Sales and Marketing Strategy Advisors President Jason Resner told SeafoodSource should encourage consumers to spend more at restaurants.
“Restaurant sales usually run in tandem with consumer confidence trends. Therefore, as consumers and businesses feel more stable and inspired by more things to come, more restaurants will begin to feature more specials as well as expanded menu items that perhaps were removed due to the unknown tariff impacts. As customers feel more confident overall, additional out-of-home meals will increase,” he said.
Still, foodservice consulting firm Technomic lowered its full-year 2025 sales projections for total foodservice, which includes hospitality, schools, restaurants, and other outlets, projecting a range of 3.4 percent to 4.6 percent, depending on the severity of economic challenges this year, which is down from its initial expectation of a 5.1 percent increase in foodservice sales this year.
For restaurants only, Technomic forecasts sales growth ranging from 2.8 percent to 4.2 percent, with a baseline scenario of 3.5 percent growth, marking a 0.2 percent decline from initial projections.
KPMG’s Consumer Pulse Summer 2025 report highlighted similar findings, predicting that Americans expect to spend 7 percent less each month on restaurants this summer, per Restaurant Dive.
