Once-Struggling Steakhouse Chains That Are Surprisingly Making A Comeback

In addition to being some of the fastest-growing restaurant chains in the U.S., steakhouses are making a well-deserved comeback. With countless eateries shutting down before and after the pandemic, we're grateful for the ones that have managed to persevere and develop strategic business approaches. These brands are just about ready to join the growing list of restaurant chains that have made a comeback, and we're happy to see that rather than calling it quits, they're putting in the hard work necessary for renewed success.

Though most of these chains are beloved for their classic and rustic charm, their modern-day updates are what give these restaurants new life. Their respective comebacks are largely thanks to a mix of adjustments, including acknowledging changing consumer demands, adding locations, and diversifying their offerings. Prioritizing community engagement and including younger millennial and Gen Z audiences in their marketing strategies as well as leveraging social media and loyalty programs have also added to rebuilding these restaurants' brand recognition. Ultimately, good food and positive customer experiences seem like the keys to securing a place in patrons' hearts once again.

Despite what its name implies, Texas Roadhouse first debuted in Clarksville, Indiana, in 1993. Its Southwestern style and "from-scratch" approach (which includes everything from its croutons to dressings) led to its initial success, resulting in hundreds of locations opening nationwide and abroad. Years later, when casual dining was halted due to the pandemic, Texas Roadhouse saw a 6.3% drop in profits, with its net income down by $19.5 million by the final quarter of 2020. Despite this initial loss, Texas Roadhouse was quick to focus on its people, prioritizing its workers by completely avoiding layoffs. The restaurant's founder, Kent Taylor, even passed up his salary for the remainder of 2020 and donated $5 million to support struggling Texas Roadhouse employees.

With indoor dining at stake, Texas Roadhouse had to figure out how to turn its numbers around. It eventually leaned into a takeout model, encouraging diners to pick up their favorite dishes to enjoy in the comfort of their own homes. Texas Roadhouse implemented dedicated to-go areas and utilized its VIP Club to inform patrons of current specials and limited-time deals. This simple but effective approach, paired with quality cooking, doubled the brand's to-go sales between 2019 and 2021, helping the chain raise its numbers during the pandemic. In 2024, with indoor dining back in action, Texas Roadhouse reported a 13.5% increase in total revenue. The chain has plans to open 30 new restaurants in 2025 after successfully opening dozens of new spots in 2023 and 2024.

Following a couple decades of initial success in South America, the Brazilian steakhouse chain Fogo de Chão first captured the hearts of hungry Americans in 1997 after opening its first U.S. location in Dallas, Texas. The restaurant soon became a hit in the barbecue-loving state, where locals embraced its all-you-can-eat, churrasco-style meat. Fogo de Chão represented the best of Brazilian barbecue: flavorful skewered meats grilled over an open wood fire, complete with a buffet market table and a tableside meat-carving experience. Soon, the chain brought its zesty flavors to the rest of the country, opening dozens of restaurants nationwide. So, what went wrong?

Five years before the pandemic, the restaurant faced issues with investors and struggled to secure trades above $15. However, in 2018, a private equity firm bought out the chain, and with the resulting money, Fogo de Chão paid off the $344.2 million of debt that it accrued over the course of its expansion. Despite this resolution, the chain didn't fare well following the pandemic's arrival in 2020, as its interactive, chef-led dining experience and buffet didn't work with lockdowns and social distancing guidelines. Surprisingly, even with these setbacks, Fogo de Chão's profit margins eventually surpassed pre-pandemic levels, thanks to its quality ingredients, all-inclusive atmosphere, rewards programs, and innovative dining experience, all of which drew customers back in once restrictions were lifted. Now earning hundreds of millions in revenue, Fogo de Chão is feeling ambitious. The brand signed 12 new leases in 2023, with the goal of opening up to 600 locations over the coming decades.

Like many restaurants, LongHorn Steakhouse suffered from the challenges posed by the pandemic, with disrupted operations and on-and-off closures. After first opening in Atlanta, Georgia, in 1981, LongHorn expanded throughout the country, showing Americans that the restaurant knew how to cook a mean steak. Prior to the pandemic, LongHorn focused on expansion by marketing to younger patrons and prioritizing the quality of its beef — two aspects of its business model that are still important to the brand today.

By the end of 2020, the chain's total sales had fallen by more than 40%, pushing executives to rethink the brand's business strategy. They decided to postpone new restaurant openings, increase delivery capacity, and limit advertisement spending. Any remaining advertising funds were dedicated to showcasing LongHorn's carryout options, resulting in three times the amount of takeout orders compared to pre-pandemic numbers. These strategies helped LongHorn stay afloat, and the brand has implemented even more thoughtful approaches since the start of the pandemic, including optimizing customer service to improve guest experience. And, of course, the chain's quality should not be overlooked, with LongHorn being readily and consistently praised for its taste, refinement, and decor. These mindful touches have paid off, allowing LongHorn to boost its total sales by $67 million from 2023 to 2024, making the chain a worthy contender in the competitive steakhouse world.