Family-dining chains that serve only breakfast and lunch are soaring, while those covering all three dayparts have stumbled, according to Technomic Top 500 data.
Overall sales in this segment grew by just 0.3% in 2025, the smallest increase in five years, per Technomic data. And a clear divide has emerged between the old-guard concepts that cover all three dayparts, like IHOP and Cracker Barrel, and a burgeoning crop of so-called daytime-dining chains that open early and close by midafternoon.
Almost all of the fastest-growing chains in the segment are in that latter group. Led by 648-unit First Watch, other players include Another Broken Egg, Snooze, Eggs Up Grill and Denny’s-owned Keke’s Breakfast Cafe.
They are also generating more sales per location, despite their limited operating hours. Average unit volumes at Top 500 breakfast-and-lunch chains were $2.09 million in 2025, compared to $2.07 million for brands that serve breakfast, lunch and dinner.
The fastest-growing of these daytime-dining players last year was 105-unit Eggs Up Grill, where sales surged by 32.3% on unit growth of 20.7% in 2025.
The Spartanburg, South Carolina-based franchise focuses on down-the-middle breakfast staples like omelets, Benedicts and pancakes in a friendly environment. It’s nothing fancy, and customers seem to love it: Eggs Up has recorded 21 straight quarters of same-store sales growth.
CEO Ricky Richardson said the brand’s approachability, convenience and affordability are resonating with customers. Diners can be in and out of Eggs Up in under 40 minutes and will spend just $12 to $14 on average. Some are replacing fast-food breakfasts with what they view as a better all-around experience.
“When you have a positive, upbeat, energetic ambiance like that, a team that really believes in the brand, and then the breadth of consumer appeal, all those things are working well for us,” Richardson said.
For other daytime-dining concepts, there’s a focus on culinary invention. At First Watch, for instance, customers will find global takes on breakfast classics, such as a chimichurri steak and eggs hash, and unique flavors, like sweet-spicy Million Dollar Bacon. Everything is made fresh in the restaurant, including the juice. First Watch sales rose 16.1% last year.
Alcohol is also a differentiator for daytime dining. Many concepts play to the boozy brunch crowd, including Keke’s, First Watch, Toasted Yolk and Ruby Slipper, making them destinations for large groups (and giving check averages a boost).
Some daytime-dining brands do cater to a slightly higher-income consumer, which may be helping to insulate them from economic headwinds that have hurt other brands in the segment.
But daytime dining’s biggest advantage over more traditional family-dining chains may be an operational one. Narrower menus allow staff to focus on doing a few things very well, and the limited hours mean they get their afternoons free to pick up kids, pursue a hobby or even work a second job.
And the restaurants’ strong unit economics mean they can offer competitive wages. At Eggs Up, that equation has helped the chain hire better people.
“The lifestyle element of working at Eggs Up is really appealing,” Richardson said.
The year was not all bad for breakfast-lunch-and-dinner concepts. Twenty-eight unit Elmer’s Restaurants grew sales by 23.4% as it added four locations to its footprint in the Pacific Northwest. Out East, 68-unit Metro Diner grew by 9.7% and opened six new stores.
But success stories like those were outweighed by significant struggles at chains like Shoney’s, where sales declined 21.1%, and Big Boy, down 9.3%.
And among the very largest such brands—IHOP, Cracker Barrel, Denny’s and Waffle House—only Waffle House achieved positive sales, with 3% growth.
