As inflation continues to pressure household budgets, dining out has become increasingly expensive for many customers. What was once a routine family outing is now often viewed as a discretionary expense, forcing restaurants to compete harder for every visit.
The restaurant industry is facing a challenging environment marked by softer consumer spending, rising labor and food costs, and slowing traffic growth. To adapt, many restaurant brands are looking beyond their traditional business models and expanding into lifestyle-focused marketing initiatives designed to deepen customer engagement and strengthen brand loyalty.
Sports have become a particularly attractive avenue for restaurant brands, as few forms of entertainment can match the emotional connection, community, and long-term loyalty they generate. For businesses seeking to remain relevant in a crowded marketplace, aligning with sports can provide access to highly engaged audiences and valuable cultural moments.
The strategy is becoming an increasingly important part of First Watch’s growth playbook as the company looks to stand out in a challenging restaurant environment by leveraging professional golf as part of a broader effort to drive brand awareness, attract higher-income consumers, and support long-term growth.
First Watch bets on PGA Tour partnership as restaurant competition intensifies
First Watch (FWRG) recently partnered with the PGA Tour to host a series of branded activations during golf tournaments in Dallas and Fort Worth, Texas. The initiative was designed to introduce the brand to new audiences while creating interactive experiences that extend beyond the traditional restaurant setting.
Among the featured activations were:
- The Feel Good Hotline: A themed phone booth where attendees could listen to uplifting messages and positive stories.
- The Good Mic: An interactive microphone station inviting guests to share personal stories, achievements, and positive moments.
- Playhouse: The first-ever miniature First Watch experience, where attendees could relax and enjoy food and beverages from nearby concession vendors. Following the events, the Playhouse will be donated to a school, Momentous Institute of Dallas.
The activations reflect First Watch’s broader goal of connecting with consumers in culturally relevant environments rather than limiting engagement to restaurant visits alone.
“Our partnership with the PGA Tour taps into the natural overlap between golf and brunch – a seamless way to show up where culture is already happening and reinforce our relevance in it,” said First Watch Chief Brand Officer Matt Eisenacher in a statement to TheStreet.
“At First Watch, we’re not just serving breakfast … we’re setting the standard for modern daytime dining. We’ll keep leaning into opportunities like this to meet our customers where they are and strengthen our position as America’s most beloved breakfast brand,” Eisenacher added.
The PGA Tour oversees the premier men’s professional golf tournaments in the U.S. and attracts an audience that generally skews towards higher-income consumers. Given golf’s traditional affluent demographic, the partnership offers First Watch an opportunity to strengthen awareness among consumers with significant discretionary spending power, a demographic that closely aligns with golf’s traditional audience.
First Watch’s strategy to boost growth
The PGA Tour collaboration comes as First Watch continues executing several growth initiatives.
Earlier this year, the company introduced a revamped seasonal menu, first launched in January and expanded nationwide in February 2026. The menu combines new offerings with the return of several fan favorites, a strategy intended to drive both guest excitement and higher spending.
New and returning menu items include:
- Pineapple Express: Pineapple, orange, coconut water, lime, and agave, served with a mint crystal rim.
- The B.E.C: A bacon, egg, and cheddar cheese sandwich layered with house-pickled sweet peppers, arugula, Calabrian chili aioli, and roasted garlic aioli, on sourdough bread.
- Chimichurri Steak & Eggs Hash: Steak, fresh spinach, cheddar and Monterey Jack cheeses, diced red bell peppers, and roasted onions over a potato hash, topped with two eggs any style, feta cheese, pickled sweet peppers, roasted garlic aioli, and chimichurri sauce.
- Strawberry Tres Leches French Toast: Challah bread topped with glazed strawberries, dulce de leche, whipped cream, and spiced gingerbread cookie crumbles, dusted with powdered cinnamon sugar.
- Blueberry Lemon Cornbread: Cornbread with blueberries, topped with house-whipped lemon butter and cinnamon sugar.
“We wanted this seasonal menu to celebrate the dishes our customers know and love, while also introducing some new flavors into the mix,” said First Watch Senior Vice President of Culinary Strategy Shane Schaibly in a statement.
At the same time, First Watch continues to expand rapidly despite a restaurant industry that has seen numerous competitors announce closures and restructuring efforts.
Here’s some of my previous coverage on recent restaurant closures:
- Beloved ice cream chain closing location after 40 years
- Buffalo Wild Wings closes restaurants across the U.S. in 2026
- Jack in the Box fights to keep dozens of stores from closing
- Fast-food burger pioneer chain closes its final location
During the most recent quarter, the company opened 16 new restaurants while closing only one location, bringing the total footprint to 648 restaurants, including 572 company-owned and 76 franchise-owned, across 32 states.
For fiscal year 2026, First Watch expects to open 59 to 63 net new restaurants while closing three locations, meaning openings will continue to significantly outpace closures.
According to the company, growth is being driven by a disciplined market-development approach that focuses on strengthening presence in established markets, entering high-potential new regions, and improving operational efficiency.
First Watch is also acquiring franchise-operated restaurants to increase corporate ownership, a move that could improve operational consistency and profitability over time, according to a company announcement.
Why Texas and golf make strategic sense for First Watch
The PGA Tour partnership aligns with First Watch’s geographic footprint and expansion strategy.
According to the company’s restaurant locator, Florida contains the largest concentration of First Watch locations. The state is also widely regarded as the nation’s leading golf market, according to Links Magazine, a dedicated golf publication.
Texas places second in the number of First Watch restaurants and remains one of the company’s key expansion markets. The state also has one of the strongest golf cultures in the country, ranking sixth among the most golf-friendly states, according to the publication.
That makes Dallas and Fort Worth logical locations for the company’s first PGA Tour activations.
Viewed through that lens, the partnership appears to be more than a sponsorship opportunity. It strategically places the brand in front of consumers in markets where First Watch already has a meaningful operational presence and long-term growth ambitions.
Early results suggest momentum is building
Early performance suggests the company’s menu investments are resonating with customers.
During the first quarter of 2026, First Watch reported a year-over-year 17.3% increase in total revenue, while same-restaurant sales rose 2.8%.
Executives noted that customers are ordering more items per visit and increasingly selecting premium menu offerings, contributing to higher average checks and an improved sales mix.
“That dynamic indicates that customers are not only responding well to the updated menu, but also that the new design is encouraging them to explore deeper into our offerings, validating both the strategic intent and the financial discipline behind this important initiative,” said First Watch CEO Christopher Tomasso in the first-quarter earnings call.
The results highlight a broader trend emerging across the restaurant industry. While consumers may be reducing discretionary spending in some areas, many remain willing to spend more when they perceive greater value, quality, and uniqueness in the dining experience.
Encouraged by early results, First Watch extended the availability of its seasonal menu from the traditional 10-week window to 20 weeks, giving management more time to evaluate customer demand and marketing effectiveness.
The restaurant industry remains under pressure
Despite these positive signs, First Watch continues operating in a difficult industry environment.
Prices for food away from home increased 3.6% in the 12 months ending April 2026, according to recent data from the U.S. Bureau of Labor Statistics.
Meanwhile, menu prices across major restaurant chains have climbed sharply in recent years as companies attempt to offset higher labor, food, and operating costs. Industry traffic trends have also weakened, underscoring the challenges of maintaining growth while consumers become more selective about where they spend their money.
Between 2020 and 2025, menu prices at 16 major restaurant chains, including IHOP (DIN), Denny’s (DENN), Cracker Barrel (CBRL), and Waffle House, increased by an average of 39%, nearly double the national inflation rate of 22%, according to FinanceBuzz.
Unlike many competitors, First Watch has not raised menu prices so far in 2026, although executives have indicated they continue evaluating future pricing decisions.
“Value is not built through pricing strategy alone. It is earned by strengthening non-price drivers—quality, service, and consistent execution—so demand remains resilient,” said Deloitte restaurant industry experts.
What it means for First Watch’s future
First Watch’s recent initiatives demonstrate how restaurant growth strategies are evolving beyond traditional advertising and menu updates.
The company’s PGA Tour partnership, seasonal menu innovation, restaurant expansion plans, and franchise acquisitions all contribute to a broader effort to build a stronger lifestyle-oriented brand while increasing customer engagement and spending.
As competition intensifies across the restaurant industry and economic uncertainty persists, restaurant operators can no longer rely solely on brand recognition to drive growth. Industry research increasingly points to menu innovation, loyalty programs, and experiential marketing as important drivers of consumer engagement and restaurant sales growth.
That trend helps explain why experiential marketing has become a growing priority for brands across the sector. Approximately 80% of marketers believe live events are critical to their company’s success, while 95% agree that live events provide attendees with a valuable opportunity to form in-person connections in an increasingly digital world, according to Modern Restaurant Management.
“An increasing number of customers are laying more importance on distinctive experiences rather than things,” said industry experts at Modern Restaurant Management. “The most important thing to remember is to go beyond just food offerings, and add value to the experience.”
For First Watch, the combination of experiential marketing, disciplined expansion, menu innovation, and strategic market positioning suggests management is pursuing exactly that approach as it seeks to maintain growth in an increasingly competitive restaurant landscape.
Related: Fast-growing breakfast chain sees sales jump after menu revamp
