3 Popular Steakhouse Chains Are Making A Comeback After Financial Ruin

In a sea of restaurant closures and bankruptcies, steakhouses lovers can enjoy some good news; Texas Roadhouse, LongHorn Steakhouse, and Fogo de Chão have managed to shake off the lingering effects of the pandemic. From 2020 to 2022, these chains faced location shutdowns, rising meat prices, and staffing issues. Similarly, many restaurants struggled to adapt to new consumer priorities and take-out options. As a result, in March 2020, Texas Roadhouse's stock price dropped nearly 30%. Darden Restaurants, which owns LongHorn Steakhouse, similarly experienced significant dips in same-store sales that month, while Fogo de Chão, famous for its lavish Brazilian churrasco, faced fewer diners as more people worked from home and stopped dining out.

The comeback of these brands is driven by smart decisions that stuck to each chain's individual strength. Texas Roadhouse embraced its reputation for quality, selling premium meats directly to customers during the lockdowns. LongHorn Steakhouse simplified its menu to focus on top sellers like Flo's Filet and boosted its delivery and pickup services, which now make up a good portion of its sales. Fogo de Chão mixed things up with new dining options by expanding into premium seafood offerings. The payoff for these choices is clear with Texas Roadhouse enjoying a 21.4% boost in revenue in 2023, while LongHorn Steakhouse's same-store sales rose by 4% in early 2024.

After the pandemic, Texas Roadhouse raised its menu prices several times during 2022 and 2023 to manage rising costs. In early 2022, prices went up by 3.2%, which helped boost revenue during that period — Texas Roadhouse reported a total revenue of $987.486 million, a 23.3% increase compared to first quarter revenue in 2021. It continued adjusting prices with a 2.2% increase in April 2023, followed by a 2.7% hike that October. The trend of careful price adjustments continued into early 2024 with an additional 0.9% increase, as the chain waded through economic pressures.

To help customers cope with these prices, Texas Roadhouse rolled out more budget-friendly menu options like the "Early Dine" menu, all while maintaining the quality of its famous USDA Choice steaks. This strategy proved successful with same-store sales jumping 7.7% year-over-year in the fourth quarter of 2024, and customer loyalty scores reaching a five-year peak. To keep enough staff on board, Texas Roadhouse also introduced incentives like profit-sharing and scholarships for employees. These efforts built a supportive atmosphere that kept customers happy even while other beloved restaurant chains faced bankruptcy.

Darden Restaurants, which operates LongHorn Steakhouse, employs a clear marketing strategy to communicate the brand's rustic aesthetic and high quality offerings. Perhpas most importantly, it values customer satisfaction above all else. A good example of this is  LongHorn Steakhouse's penchant for bringing back fan favorites, like the LongHorn Grilled Lamb Chops, for limited runs as a way to keep customers engaged. This is especially interesting given that the restaurant generally avoids changing its menu too often due to rising costs post-pandemic. 

LongHorn Steakhouse also partners with food delivery services like DoorDash, UberEats, GrubHub to expand its customer base and ensure at-home diners can still get a great steak. According to Darden's investor reports, the company's sales grew 6.0% in the second quarter of 2024 alone, with LongHorn Steakhouse's sales growing 7.5 % in the same period. Additionally, Longhorn Steakhouse showed significant sales growth compared to previous years

COVID-19 was a major reason why so many restaurants struggled in 2024 and because of it, Fogo de Chão saw its revenue plummet to $205 million in 2020 — from $350 million in 2019. However, the chain bounced back in the following years, with revenues climbing to $431 million in 2021 and $546 million in 2022.

Fogo de Chão's acquisition by Bain Capital Private Equity in 2023 equipped it with resources that proved crucial post-pandemic. The chain pushed into global markets, opening 12 new locations in Saudi Arabia and Mexico in 2023, tapping into the global demand for fine dining. It also refreshed its menu with more affordable offerings like weekday lunch specials and even brunch — expanding its appeal without compromising its upscale image. Similarly, Fogo de Chão also added premium seafood offerings to its permanent menu in 2025, coinciding with the brand's larger "Fogo is Fire" campaign meant to acquaint customers with the brand's Brazilian identity.