Why Major Restaurant Chains Are Shrinking Menus & Staff—And What Small Businesses Can do
Big restaurant chains are making bold moves—shrinking menus, cutting staff, and restructuring operations—all in response to inflation, shifting consumer spending, and operational inefficiencies. Starbucks' decision to slash 30% of its menu made headlines, but they're far from alone. Bloomin’ Brands (Outback Steakhouse), Dine Brands (IHOP & Applebee’s), and even Hooters are all tightening up their businesses in an effort to survive and thrive in a changing economy.
So what does this mean for small restaurants, pop-ups, and food trucks? A lot.
The Industry Trend: Leaner Menus, Smaller Teams, and More Efficiency
Here’s how some of the biggest names in food are responding to market pressures:
Starbucks: Cutting Complexity for Speed & Profitability
Trimming 30% of its U.S. menu by September 2025 to streamline operations and cut down on wait times.
Laying off 1,100 corporate employees in an effort to improve efficiency.
Strategy: Reduce operational friction, increase throughput, and focus on the most profitable, in-demand menu items.
Bloomin’ Brands (Outback Steakhouse, Carrabba’s, Bonefish, Fleming’s): Downsizing the Corporate Structure
Laying off 17% of corporate staff (~100 employees) due to a 3.8% decline in revenue year over year.
No major menu changes announced yet, but cost-cutting measures are expected across its brands.
Strategy: Reduce overhead, focus on streamlining restaurant operations, and prepare for more economic tightening.
Dine Brands (IHOP & Applebee’s): Slimming Down to Stay Competitive
Cutting 9% of its corporate workforce (~600 employees) as part of an operational restructuring.
Positioning itself for long-term efficiency by investing in tech-driven ordering and operational simplifications.
Strategy: More digital ordering, fewer in-store employees, and a streamlined menu strategy to reduce complexity.
Hooters: The Shrinking Brand Facing a Make-or-Break Moment
12% decrease in restaurant count since 2018 and 44 closures in 2024 alone.
Bankruptcy rumors are swirling, but the brand hasn’t confirmed a filing yet.
Strategy: Still unclear, but likely a mix of restaurant closures, menu cuts, and cost-saving measures.
What Small Restaurants and Independent Food Vendors Can Learn
These big chains aren’t cutting back because they want to—they’re doing it because they have to. Margins are getting thinner, labor is expensive, and consumer expectations are changing. But small businesses have something these big brands don’t—agility. You don’t have a massive corporate structure slowing you down. That means you can adapt faster, lean into community engagement, and create a unique, high-value experience that customers will pay for.
✅ Focus on a streamlined, high-impact menu.
If Starbucks and Outback are cutting back, you should be thinking about whether every menu item is earning its place. Stick to what you do best and what customers actually love.
✅ Position yourself as an experience—not just a meal.
When chains are tightening up, small businesses have a golden opportunity to offer something that big brands can’t: local flavor, community engagement, and a more personal dining experience.
✅ Use inflation-friendly pricing strategies.
Instead of raising prices across the board, adjust strategically—for example, offering bundles, prix fixe menus, or highlighting high-margin items to increase perceived value.
✅ Leverage technology to make ordering and marketing easier.
Dine Brands is moving towards more tech-driven ordering and automation—and while that might sound out of reach for a small restaurant, QR code menus, online pre-ordering, and social media-driven promotions can go a long way.
✅ Invest in your brand voice & marketing strategy.
Your menu, social media presence, and website should tell a story about who you are. Big chains are optimizing for efficiency—but independent brands should optimize for emotional connection.
How Rabbit Food Can Help Your Restaurant Stay Ahead
If you’re a restaurant owner, food truck operator, or pop-up caterer, now is the time to get strategic. As big brands tighten up, small businesses that differentiate themselves will win. That’s where Rabbit Food comes in. We help small restaurants & food brands market like the big guys—without losing what makes you special.
🔹 Strategic Social Media & Content Marketing – Helping you tell your brand story, attract customers, and stand out.
🔹 Menu & Brand Strategy – Streamlining your offerings so they’re efficient, profitable, and exciting for customers.
🔹 Local Engagement & Partnerships – Positioning you where your audience is to drive word-of-mouth & loyalty.
🔹 Data-Driven Growth Strategies – Tracking what’s working, so you’re always refining and optimizing.
Let’s make sure your restaurant isn’t just surviving but thriving in this changing landscape.
📩 Contact Rabbit Food today and let’s talk strategy.
The Usual Disclaimer (You Know the Drill): Just to keep it real—Rabbit Food Marketing didn’t bake these cookies, roll these tacos, or make these brands famous. We just think they’re doing some pretty awesome things with their marketing, and we love watching small businesses grow into major players. This case study is all about giving credit where it’s due and breaking down smart tactics for anyone looking to level up. No affiliation, no behind-the-scenes magic—just admiration for great eats and great branding.
Rabbit Food Marketing is not affiliated with or endorsed by the businesses featured in this case study. All insights are based on publicly available information and social media analysis for educational and commentary purposes. Any trademarks, logos, or brand names mentioned are the property of their respective owners.
