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Fast food is no longer cheap, and fast-casual chains are benefitting<\/a> from it. Rick Cardenas, CEO of Darden Restaurants\u2014which owns Olive Garden, Longhorn Steakhouse, Bahama Breeze, and Ruth\u2019s Chris Steak House\u2014said during the company\u2019s Thursday earnings call<\/a> that consumers are seeing \u201ca little bit of a shift\u201d from fast food to its sit-down competitors due to the high cost of burgers and fries and inflation-weary customers.<\/p>\n \u201cThe consumer is really focused on what price they\u2019re paying [everywhere], not just in restaurants,\u201d Cardenas said.<\/p>\n \u201cBut at the same time, our guests aren\u2019t managing their check like we\u2019ve seen in prior quarters,\u201d he added.<\/p>\n The trend Cardenas notes comes at a time when consumers are seeing fast food as unaffordable<\/a>, with 78% of Americans calling fast food a \u201cluxury\u201d because of its price tag, and 60% saying they plan to cut back on burgers and fries because they\u2019re so expensive. After backlash over surge pricing and overpriced Big Macs, fast-food burger chains have worked to placate angry customers with discounts and promotions, such as McDonald\u2019s newly announced $5 value meal<\/a> and Wendy\u2019s own $3 breakfast meal deal<\/a>.<\/p>\n But casual sit-down restaurants are taking advantage of customers\u2019 skepticism of fast food companies. Chili\u2019s rolled out its Big Smasher<\/a> in April, a double cheeseburger bearing eerie resemblance to McDonald\u2019s Big Mac, which\u2014alongside chips, salsa, and a bottomless nonalcoholic drink\u2014retailed for $10.99, compared to a $9.39 Big Mac meal in Miami and $10.19 meal in Los Angeles.<\/p>\n Darden reported<\/a> weaker-than-anticipated revenue and slow same-store growth\u2014but Cardenas pledged to continue to focus on value and big portions, a strategy Bank of America<\/a> analysts are convinced will help the company in the long run.<\/p>\n \u201cWe believe that marketing highlighting the sharp everyday value available on [Olive Garden\u2019s] menu \u2014 extremely competitive with the price point value competitors are promoting \u2014 should support a widening traffic gap\/improving topline,\u201d analysts wrote in a Thursday note.<\/p>\n While Olive Garden and other Darden chains are waiting to feel the full benefit of leaning into its competitive edge over fast food, some fast-casual restaurants are already winning.<\/p>\n Better-for-you-branded salad chain Sweetgreen\u2019s first-quarter earnings soared above expectations<\/a> in part thanks to its expanded menu, which included steak and the replacement of seeds oils with avocado and olive oil alternatives. The changes have made Sweetgreen not only an appealing lunch option for young professionals, but also an appealing dinner prospect. Sweetgreen followed the same playbook as Mediterranean grain bowl spot Cava, which also leaned into steak and add-on menu items, successfully appealing<\/a> to consumer\u2019s desire for big portions and healthier food.<\/p>\n Cava CEO Brett Schulman said the strategy of healthier foods, despite being pricier than fast food, has worked for the company.<\/p>\n \u201cWe\u2019re seeing a very resilient consumer consistent across the country and across all income brackets,\u201d he told Bloomberg<\/em><\/a>. \u201cWe\u2019re not seeing check management.\u201d<\/p>\n Comparing Cava to fast-food chains, Schulman believes his concept is so successful because it can promise what chains like McDonald\u2019s and nicer sit-down restaurants can\u2019t: higher-quality food at an affordable price point.<\/p>\n \u201cConsumers are really gravitating to our value proposition, where the traditional full-service dining model has been struggling to deliver that value proposition to a modern consumer,\u201d he said. \u201cAs prices have increased at a faster pace in traditional fast-food, it\u2019s improved the relative value proposition of our helpful Mediterranean cuisine.\u201d<\/p>\n<\/div>\n\nThe salad bowl blueprint<\/strong>