Texas Roadhouse Unseats Olive Garden as Top Chain
In a major shift within the casual dining industry, Texas Roadhouse has dethroned Olive Garden to become America’s largest casual dining chain in 2024, according to research firm Technomic. This milestone caps an extraordinary period of growth for steakhouse chains at a time when many other restaurant segments are struggling to maintain customer traffic, according to CNBC.
Both Texas Roadhouse and LongHorn Steakhouse have defied industry trends, posting remarkable traffic increases of 7.2% and 4.3% respectively last year, while overall foot traffic for full-service restaurants declined by 0.2%. This performance has attracted investors’ attention, with Texas Roadhouse’s stock rising approximately 15% over the past year and shares of LongHorn-owner Darden jumping around 25%.
Analysts point to several factors driving this success, including strategic pricing, consistent food quality, and an emphasis on creating memorable dining experiences that justify the expense of eating out. “There’s something about steak that it really rings true to the consumer as still being kind of an elevated or a premium consumption or dining experience,” explained Stephens equity research analyst Jim Salera.
Recession-Resistant Ribeyes
As inflation continues pressuring household budgets, many consumers have eliminated casual dining from their regular spending. However, value-oriented steakhouse chains have managed to retain customers by offering an experience that feels special while remaining relatively affordable.
“Value is another key driver of success,” noted Technomic Senior Principal David Henkes. Both Texas Roadhouse and LongHorn Steakhouse have absorbed some inflation costs to minimize price increases, maintaining their value proposition while many competitors have aggressively raised prices.
The chains also benefit from sophisticated corporate procurement offices that negotiate food costs in advance, providing an advantage over independent steakhouses that are more vulnerable to beef price volatility. This ability to maintain consistent pricing despite fluctuating input costs has proven especially important during recent economic uncertainty.
The Local Leadership Advantage
Industry experts emphasize that these chains’ investment in local management has been crucial to their success. “You can’t underestimate the investment that these chains make in their general managers at the store level. The store-level manager really is probably the most critical piece to any restaurant chain’s success,” Henkes explained.
This localized approach allows each restaurant to maintain consistent quality while adapting to regional preferences and building community connections. The emphasis on empowering local leadership distinguishes these chains from competitors that implement more rigid, centralized management structures.
Texas Roadhouse, in particular, is known for giving managers substantial autonomy and providing them with ownership stakes in their restaurants’ performance. This approach has helped the chain maintain its distinctive atmosphere and service standards during rapid expansion.
Destination Dining vs. Convenience Eating
While many restaurant chains have prioritized convenience through expanded delivery options and simplified operations, Texas Roadhouse and LongHorn have doubled down on creating destination dining experiences worth leaving home for. This strategy appears to be paying dividends as consumers become more selective about which restaurants earn their dining dollars.
Texas Roadhouse has cultivated a lively, entertaining atmosphere featuring country music, free peanuts, honey butter rolls, and even occasional line dancing by servers. Customers often describe visits as events rather than merely meals, with the festive environment particularly appealing to families and groups.
“When I go into an Outback now, it feels sterile and cold. They just don’t feel fun,” Richard Mathis told ABC12. “I want to eat and leave. I don’t feel any desire to hang out there.” In contrast, he described Texas Roadhouse as “fun, bright and there’s music. Roadhouse feels like going to a country bar.”
Americans are flocking to Texas Roadhouse and LongHorn Steakhouse. Here's why…
— David Henkes (@davidhenkes) April 15, 2025
Thanks @CNBC and @TheRyanLBaker for including me and our @Technomic data in the piece!
https://t.co/J4LqKTi5St
The Steak Quality Factor
Beyond atmosphere and pricing, steak quality remains fundamental to these chains’ success. Chowhound conducted a comprehensive comparison of steaks from both Texas Roadhouse and LongHorn, finding that while Texas Roadhouse offers more size options and slightly lower prices, LongHorn Steakhouse narrowly wins on overall quality.
“It was a close call, but LongHorn Steakhouse narrowly won based on the quality of their delicious steaks, which had tons of marbling, great seasoning, and a tender texture,” Chowhound reported after sampling multiple cuts. Both chains maintain rigorous quality standards, with Texas Roadhouse cutting steaks fresh daily and LongHorn preparing each steak with signature seasoning blends.
Texas Roadhouse also allows customers to select their specific steak from a display case when entering the restaurant, adding an element of personalization that many diners appreciate. “You can see exactly what the steaks look like, evaluating for marbling, color, and size before you make your selection,” Chowhound noted.
Outback’s Path Forward
As Texas Roadhouse and LongHorn have ascended, former category leader Outback Steakhouse has struggled. Outback parent company Bloomin’ Brands has seen its stock plummet more than 70% to roughly $8 per share, reflecting concerns about the chain’s ability to recapture its former prominence.
New CEO Mike Spanos, formerly chief operating officer at Delta, has implemented a turnaround plan focused on simplification and value. The chain plans to cut 20% of its menu items and reduce limited-time promotions that created operational complexity while refocusing on consistent pricing.
Industry observers point to Chili’s recent remarkable turnaround as evidence that such comebacks remain possible. After years of declining performance, Chili’s has posted three consecutive quarters of double-digit sales growth, with same-store sales increasing an astonishing 31% last quarter after upgrading core menu items and adopting more competitive pricing.
As competition in the casual steakhouse segment intensifies, consumers ultimately benefit from improved quality, enhanced dining experiences, and more competitive pricing across these chains. With both Texas Roadhouse and LongHorn continuing their expansion, America’s appetite for accessibly priced steaks shows no signs of diminishing.