A Taste of Affordable Luxury
In a time when many Americans are tightening their belts and cutting back on dining out, two steakhouse chains are bucking the trend—and doing it with sizzling success. Texas Roadhouse and LongHorn Steakhouse are not only seeing increased foot traffic, but also rising sales, customer loyalty, and cultural popularity. In 2024, Texas Roadhouse even dethroned Olive Garden as the largest casual dining chain in America, a title the Italian favorite had held for seven consecutive years.
So what’s the secret sauce? Why are these two value-driven steakhouses thriving while others, like Outback Steakhouse, struggle to keep up?
A Taste of Affordable Luxury
In an era where inflation has touched nearly every corner of the American wallet, dining out has become a luxury. Yet steakhouses like Texas Roadhouse and LongHorn have managed to position themselves as affordable luxuries. The key is simple: value.
At Texas Roadhouse, the average check hovers around $22. At LongHorn, it’s about $26. That includes not just the steak, but a sit-down experience, warm service, and all the comforting fixings—baskets of warm rolls, seasoned fries, house salads, and in some cases, live country music. Customers feel like they’re getting more than just a meal. They’re getting an experience, and for a price that still feels reasonable compared to the soaring costs at upscale steakhouses or trendy bistros.
Keeping Inflation on a Leash
Another major factor in these chains’ success is how they’ve handled pricing. While many restaurants passed rising costs directly to consumers, Texas Roadhouse and LongHorn have worked intentionally to keep their menu price increases below inflation. That’s not an easy feat in the food service industry, but it’s a strategic move that’s paid off.
By offering consistent prices, these restaurants have built trust with their customer base. In a time of economic unpredictability, consumers are gravitating toward brands they feel won’t suddenly surprise them with a $30 burger.
A Customer-First Culture
Both Texas Roadhouse and LongHorn have built reputations for high-quality service and consistency. In 2024, both tied for the highest customer satisfaction score in the American Customer Satisfaction Index among full-service restaurants.
Texas Roadhouse, in particular, is known for a lively, friendly atmosphere where servers are encouraged to be themselves. Managers are empowered to make decisions that create a great guest experience, and it shows. The chain’s founder, Kent Taylor, once famously said, “We’re not in the food business—we’re in the people business.” That culture continues to define the brand.
LongHorn, owned by Darden Restaurants (which also owns Olive Garden), also focuses on reliable quality. It’s more subdued than Texas Roadhouse, but equally committed to consistency, flavorful food, and service that feels professional but not pretentious.
Marketing the Steakhouse Vibe
Beyond the food and prices, both chains have leaned into an identity that feels deeply American. Wood-paneled interiors, Western and cowboy-themed décor, hearty portions, and straightforward menus speak to a sense of nostalgia and tradition. These aren’t minimalist modern restaurants with QR codes and kale smoothies—they’re places where you can still get a baked potato the size of your fist and a steak that actually fills the plate.
The Outback Problem
So why isn’t Outback Steakhouse, another once-beloved casual steakhouse, riding the same wave?
Outback has struggled to differentiate itself in recent years. Despite attempts to revamp its menu and modernize its image, it’s seen a decline in customer satisfaction. In fact, recent reports showed a 4% drop in satisfaction, while competitors were climbing. Its prices have crept up faster than those at Texas Roadhouse and LongHorn, and its locations have been hit harder by store closures and underperformance.
Outback also lacks the same energetic in-restaurant experience. There’s no line dancing, no country music, and no signature warm bread rolls. And in a post-pandemic world where diners want to feel entertained, appreciated, and comfortable spending their hard-earned money, those little things matter more than ever.
Steak Is Still King
The success of Texas Roadhouse and LongHorn isn’t just about steak—it’s about what steak represents: indulgence, reward, comfort, and tradition. Americans may be cutting back, but they’re still willing to splurge now and then—especially when it feels like a good deal.
That’s the sweet spot these chains have hit: hearty meals, reliable service, and just the right amount of special. And as long as they can keep delivering that balance, don’t expect the steakhouse obsession to go anywhere.
