Texas Roadhouse Takes the Lead in Casual Dining Rankings
A shift in America’s casual dining landscape has emerged, with Texas Roadhouse surpassing Olive Garden to claim the top spot in sales and popularity.
Texas Roadhouse’s Remarkable Rise
In a notable turn of events, Texas Roadhouse has emerged as the most popular casual dining chain in the United States, dethroning Olive Garden, which had held the title since 2018. The change reflects a resurgence in customer interest for the Texas-based steakhouse.
According to Restaurant Business, Texas Roadhouse experienced a significant growth in sales, reporting a 14.7% increase that totaled $5.5 billion. The chain boasts 722 locations, including some beyond U.S. borders.
Performance of Other Casual Dining Chains
In the competitive landscape of casual dining, several other chains are notable for their performance. Olive Garden reported a modest sales increase of 0.8% in 2024, bringing in $5.2 billion from its extensive network of over 920 locations.
Following closely behind Texas Roadhouse, Chili’s secured the third position with a 15% increase in sales. LongHorn Steakhouse also saw a positive trend, with a 7.2% rise. However, several other chains, such as Applebee’s and Red Robin, reported declines, with Red Lobster facing the steepest drop at -22.7% according to Restaurant Business.
Challenges in the Casual Dining Sector
The casual dining sector has been facing challenges, as many restaurants pushed aggressive promotions to attract customers amidst economic pressures. Red Lobster’s “Endless Shrimp” promotion, for example, resulted in significant losses, as commented by the chain’s new CEO, Damola Adamolekun, who described it as causing “chaos” and “stress” among staff.
