Applebee's Calexico Location Closure Signals Broader Casual Dining Shakeup as Consumer Spending Shifts. The sudden shutdown of this border-town chain, a once-reliable traffic driver, reflects a harsh new reality: the middle-market dining model is failing to adapt to Gen Z preferences for experiential eats and cost-cutting pressures from rising operational costs. For competitors, this is a stark warning—without aggressive digital overhaul and value innovation, more closures will follow.