The Cheesecake Factory is making an appeal to value-focused customers.
The casual-dining chain is introducing two new menu categories, bowls and bites, featuring a selection of items ranging in price from under $10 to $16.
During an earnings call Tuesday, executives said the new options essentially amount to a price cut, a nod to customers who may be looking to save some money.
“When we look at what we're doing from a value perspective on effective pricing, I think it's going to be well below where the industry is,” CFO Matthew Clark told analysts. “We're driving significant value for the consumer.”
The new options also bring more flexibility to the menu. Executives noted that the bites—small plates under $10—could encourage add-ons, and bowls could help drive delivery sales because they travel well and are priced competitively. Both categories could also be used to lure customers in for lunch, they said.
The six bowls include a Teriyaki Salmon Bowl, Orange Cauliflower Bowl and the Peruvian Chicken Bowl, while the eight bites include New Orleans Cajun Shrimp and Chicken and Biscuits.
They build upon the recently added small plates and snacks category, which includes items like street corn, grilled asparagus and cheeseburger spring rolls, priced in the $9 to $13 range. The Cheesecake Factory also has an appetizers menu, with heavier items like sliders and quesadillas.
Ultimately, the chain believes the lower-priced options will help drive traffic, although customers may end up spending less on average. That said, the small bites could also encourage certain customers to splurge.
“Somebody will add something like Chicken and Biscuits along with an appetizer and an entree, whereas before perhaps they were just going to get an appetizer and entrees,” said President David Gordon. “It'll be interesting to study here in the next few months.”
The Cheesecake Factory delivered another steady quarter, reporting a same-store sales increase of 1.2% year over year for the period ended July 1. That included a 4% price increase, a 1.1% traffic decline, and a 2.7% mix decline.
Over the previous four quarters, the chain posted same-store sales of 1%, 1.7%, 1.6% and 1.4%, and it expects to finish the year in a similar range.
“We've seen very, very stable sales, and so we continue to have that stable outlook,” Clark said.
Last quarter, the chain downgraded its 2025 forecast slightly, citing a softer-than-expected economic backdrop and uncertainty over tariffs. But executives said Cheesecake Factory and its sister concepts North Italia and Flower Child are navigating the environment “in a very strong way.”
They cited their restaurants’ experiential atmosphere, high-quality food and operational excellence, and noted that customer satisfaction scores are improving virtually across the board.
“I think [consumers] are more sophisticated than they've ever been about food, and we're making all of our food from scratch every single day at every single concept,” Gordon said. “We believe we can take market share and have been taking market share because of that sustained quality.”
The chain also continues to see promising results from its loyalty program, Cheesecake Rewards. After testing blanket offers for all members, the company has begun tailoring its rewards to individual users. The redemption rate has increased from 1% to 4% using the more targeted strategy.
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