Texas Roadhouse generated $5.5 billion in sales last year. | Photo courtesy of Texas Roadhouse
The U.S. casual-dining sector has a new top dog.
Texas Roadhouse, the 664-unit steakhouse chain that has been growing rapidly for years, pushed past longtime leader Olive Garden and into the top spot in terms of systemwide sales.
That’s according to the newly released data from Technomic on the Top 500 largest restaurant chains in the U.S.
Texas Roadhouse’s U.S. systemwide sales surged 14.7% last year, to $5.5 billion, per Technomic. It also opened 26 new locations, a 4.1% change.
The Louisville, Kentucky-based chain has been growing quickly for years. It has benefited from consumer demand for steak coming out of the pandemic, but has helped its cause by investing in staffing and operations while keeping its prices lower than inflation. It has also ramped up new store development.
At Olive Garden, which had held the top spot since 2018, systemwide sales rose just 0.8% in 2024, to $5.2 billion. It opened 15 new restaurants for a total of 923, an increase of 1.7%.
The Italian chain known for its large portions and endless breadsticks has lost some business from lower-income consumers, who have been most impacted by inflation. It has brought back promotions such as never-ending pasta to woo them, and in recent months has said those customers seem to be feeling better.
Still, its performance was a sharp slowdown from 2023, when sales rose 8.8%.
And it stood in contrast to LongHorn Steakhouse, Olive Garden’s sister concept under parent company Darden Restaurants. The 594-unit steak chain jumped over Outback Steakhouse to become the sixth largest casual-dining brand, thanks to sales growth of 7.2%. LongHorn also opened 14 locations last year.
In other shifts at the top of casual dining, Chili’s leapt over Applebee’s into the No. 3 spot, powered by 15% sales growth. The bar and grill chain is in the midst of a major comeback thanks to a refreshed menu and value-focused marketing that has resonated with consumers.
Applebee’s sales, meanwhile, slid nearly 6%, and it closed 35 locations.
Texas Roadhouse, Chili’s and LongHorn were the standouts in what was otherwise a tough year for the largest casual-dining chains. Sales declined at four of the 10 biggest chains, and the average sales growth among the top 10 was just 0.6%.
The segment has battled to win over price-conscious consumers, which has led to a flood of value meals and promotions. But it has also had to contend with growing consumer demand for convenience and fast-casual concepts. This has created a clear set of winners and losers as customers gravitated toward certain casual-dining brands last year. And it has pushed brands on the losing end, including Red Lobster, Red Robin and Outback Steakhouse, to overhaul their leadership and begin turnaround efforts.
www.restaurantbusinessonline.com
The U.S. casual-dining sector has a new top dog.
Texas Roadhouse, the 664-unit steakhouse chain that has been growing rapidly for years, pushed past longtime leader Olive Garden and into the top spot in terms of systemwide sales.
That’s according to the newly released data from Technomic on the Top 500 largest restaurant chains in the U.S.
Texas Roadhouse’s U.S. systemwide sales surged 14.7% last year, to $5.5 billion, per Technomic. It also opened 26 new locations, a 4.1% change.
The Louisville, Kentucky-based chain has been growing quickly for years. It has benefited from consumer demand for steak coming out of the pandemic, but has helped its cause by investing in staffing and operations while keeping its prices lower than inflation. It has also ramped up new store development.
At Olive Garden, which had held the top spot since 2018, systemwide sales rose just 0.8% in 2024, to $5.2 billion. It opened 15 new restaurants for a total of 923, an increase of 1.7%.
The Italian chain known for its large portions and endless breadsticks has lost some business from lower-income consumers, who have been most impacted by inflation. It has brought back promotions such as never-ending pasta to woo them, and in recent months has said those customers seem to be feeling better.
Still, its performance was a sharp slowdown from 2023, when sales rose 8.8%.
And it stood in contrast to LongHorn Steakhouse, Olive Garden’s sister concept under parent company Darden Restaurants. The 594-unit steak chain jumped over Outback Steakhouse to become the sixth largest casual-dining brand, thanks to sales growth of 7.2%. LongHorn also opened 14 locations last year.
In other shifts at the top of casual dining, Chili’s leapt over Applebee’s into the No. 3 spot, powered by 15% sales growth. The bar and grill chain is in the midst of a major comeback thanks to a refreshed menu and value-focused marketing that has resonated with consumers.
Applebee’s sales, meanwhile, slid nearly 6%, and it closed 35 locations.
Texas Roadhouse, Chili’s and LongHorn were the standouts in what was otherwise a tough year for the largest casual-dining chains. Sales declined at four of the 10 biggest chains, and the average sales growth among the top 10 was just 0.6%.
The segment has battled to win over price-conscious consumers, which has led to a flood of value meals and promotions. But it has also had to contend with growing consumer demand for convenience and fast-casual concepts. This has created a clear set of winners and losers as customers gravitated toward certain casual-dining brands last year. And it has pushed brands on the losing end, including Red Lobster, Red Robin and Outback Steakhouse, to overhaul their leadership and begin turnaround efforts.
Texas Roadhouse is now the biggest casual-dining chain in the U.S.
The high-flying steakhouse brand pushed past Olive Garden and into the top spot last year thanks to nearly 15% sales growth, according to
www.restaurantbusinessonline.com
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those sticky honey wings god tier food
