Family dining splits in two: breakfast-lunch chains surge as all-daypart incumbents stall
Breakfast-and-lunch-only chains posted +11.6% average sales growth in 2025 while all-daypart family diners slipped -0.3%. First Watch (+16.1%, 648 units) and Eggs Up Grill (+32.3%, 105 units, 21 straight quarters of SSSG) are pulling share from IHOP, Cracker Barrel, Denny's and Shoney's (-21.1%).
US family-dining segment is bifurcating: breakfast-and-lunch-only chains like First Watch and Eggs Up Grill posted double-digit sales growth in 2025, while all-daypart incumbents like IHOP, Cracker Barrel and Denny's stagnated or declined.
Why this matters
First Watch's +16.1% growth and Eggs Up Grill's 21-quarter SSSG streak show breakfast-lunch specialists capturing share as legacy all-daypart diners like Cracker Barrel and Denny's stall.
Retail-brand signals steady at 123 in last 90 days, with family dining bifurcation a key storyline.