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4 Steakhouse Chains Disappointing Customers In 2024

Various setbacks from bad reviews to food-borne illness are hurting business at popular chains including Outback and LongHorn.

It may have flown by in a flash for many, but with the holidays upon us, 2024 is on the cusp of its grand finale. In anticipation of the new year and a fresh start, plenty of popular restaurant chains are aiming for a better 2025.

It's hardly been a boom period for restaurant growth. Some of the most recognizable names in the industry like Denny's, Applebee's, Fuddruckers, and Au Bon Pain have closed noticeable numbers of locations over the past two years or so.

Other casual-dining chains once considered absolute juggernauts within their chosen restaurant niche, such as Red Lobster, filed for bankruptcy this year. Although the seafood chain will continue to operate nearly 550 locations moving forward following a change in ownership, the trend remains undeniable. Rumors have even begun to swirl that TGI Friday's, yet another casual-dining trailblazer, is heading toward Chapter 11.

One may assume this recorded restaurant malaise among consumers would also impact steakhouse chains considerably. After all, an evening out at the steakhouse isn't typically a budget meal, and the costly influence of inflation and ballooning prices on the average person's spending ability remains a hot-button topic for all Americans.

Surprisingly, however, the #1 steakhouse chain in terms of pure profits continues to thrive despite periodically pumping up menu prices. Texas Roadhouse brought in over $4 billion in sales last year and has already collected more than $3.9 billion in 2024, up 13.5% compared to 2023. Incredibly, fall foot traffic even increased despite the latest in a steady stream of price hikes. The western-themed steakhouse headquartered in Kentucky raised prices by 0.9% in late September after a prior fee increase of 2.2% earlier this year.

So, while it isn't impossible to thrive in the steak business nowadays, not every steakhouse chain is faring quite as well as Texas Roadhouse in 2024. Finding the perfect mix of affordability, steak quality, ambiance, and service is far easier said than done. Let's take a look at four steakhouse chains falling out of favor with customers this year.

Outback Steakhouse

Outback Steakhouse exterior
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Something is amiss at the Aussie-themed steakhouse chain. While actual Australians may have something to say about the authenticity of Outback's "Australian" fare, there's no denying the casual dining steakhouse chain has made a considerable impression on the restaurant industry over the past few decades.

Outback started 2024 intent on expansion. The crown jewel of Florida-based Bloomin' Brands may have aimed to open near 20 new locations this year, but Bloomin' CEO David Deno also explained during a recent earnings call the chain had decided to close 41 "underperforming" units across all Bloomin' brands (with the majority being Outback restaurants).

Meanwhile, earnings reports covering the first and second quarters of this year haven't painted a fonder financial picture for the seminal steakhouse chain. Alarmingly, the first quarter report indicated that U.S. customers are visiting less oftenand even when they do, they're spending less money. Similarly, second quarter earnings came in lower than expected, with the steak chain admitting the fiscal period saw a "softer than anticipated" consumer environment, Nation's Restaurant News reported.

 8 Best Steakhouse Chains In America

STK Steakhouse

STK Steakhouse, 1114 6th Ave, NYC, offers a dynamic fine dining experience, vibrant mix of dining and lounge spaces with signature menus and world-class service.
Shutterstock

Proclaiming itself "not your daddy's steakhouse," the STK restaurant brand is all about combining high-quality cuts of meat with a sleek, modern ambiance that feels closer to a celebration than a mere meal.

STK's "vibe-driven approach to fine dining" has served it well since it burst on the steak scene about two decades ago. The chain now boasts around 30 restaurants, with most being in the United States, but a number of recent comments and reviews don't exactly gel with the ultra-exclusive, high-end image the steak chain has carefully cultivated.

A scathing Washington Post review of STK's new Washington, D.C., location compared the restaurant's interior to an amusement park and the actual food to an airplane meal, which doesn't exactly sound worthy of STK's hefty price points. Food critic Tom Sietsema wrote that STK's New York strip was "all chew and zero flavor. It was also grilled beyond the medium-rare we requested."

Recent posts and comments on social media convey a similarly disappointing culinary experience. One Reddit post from this summer titled "STK Steakhouse is not good" griped, "I ordered a dry aged steak and if it was dry aged, it must have been aged for a day and a half at most. I've had better steak at Texas Roadhouse."

Another Reddit comment with nearly 2,000 upvotes stated: "No one goes to STK for the steak, it's a club cosplaying as a steakhouse."

 I Tried the Most Expensive Steak at 3 Major Steakhouse Chains & One Stole the Show

LongHorn Steakhouse

longhorn steakhouse
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One of the largest and most popular steakhouse chains in the United States, LongHorn Steakhouse brought in over $2 billion in sales last year. Fast forward to 2024, and LongHorn has continued to enjoy strong sales and foot traffic. Despite parent company Darden Restaurants' latest earnings report largely missing both internal expectations and Wall Street's estimates, LongHorn stood out as the company's only restaurant chain to show same-store sales growth.

So, why then, does LongHorn Steakhouse find itself on this list? Nothing turns customers away faster than a case of food poisoning. This October, a major outbreak of shigella infections was traced back to a LongHorn location in Fairview Heights, Ill. A total of 66 people tested positive for the bacteria, 26 more reported symptoms, MSN reported. The sick individuals dined at the restaurant around late September. The restaurant was closed Oct. 2, but reopened two weeks later following a thorough cleaning and sanitization. A dozen patients had to be hospitalized due to the severity of their symptoms.

Symptoms of shigella infection, or shigellosis, including fever, stomach cramps, diarrhea,  usually take a day or two to develop—but the infection spreads very easily. Found in feces, shigella pathogens often spread by dirty hands or contaminated water, food, and objects.

A LongHorn representative told local news affiliate KFVS-TV that all food items, food prep utensils, and common guest touchpoint items had been discarded, and a third-party professional cleaning company was hired to disinfect the entire restaurant while the location was closed. Training sessions were also held with every employee to reinforce food safety and sanitation practices.

"I think with the reopening, I do believe in second chances," one past customer told KFVS-TV. "Give them a chance to see how they do this team when they're open, maybe if they're open in the next six months with no complaints I may consider it."

 Texas Roadhouse vs. LongHorn Steakhouse: 6 Major Differences

Black Angus Steakhouse

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A pioneering steakhouse chain founded way back in 1964, Black Angus has seen its fair share of business booms and sales slumps. A little over two decades ago, the brand boasted over 100 locations, but today there are only around 30 (mostly in California).

The past few years held serious promise for Black Angus, as 2021 saw a renewed push to revitalize the brand, and earlier this year, the steakhouse chain even announced a collaboration with the super popular Cheesecake Factory, according to FSR Magazine. Unfortunately, Restaurant Business reports that Black Angus is a possible candidate for bankruptcy in the near future. The chain's debt is reportedly trading for pennies on the dollar.

"It is extremely bad," John Bringardner, executive editor of Debtwire, a publication that tracks companies' debt, told Restaurant Business. "It's a sign that the debt holders really think that there's little likelihood of recovery there."

Deborah Shapiro, Black Angus' vice president of growth, denied impending bankruptcy when asked by email, stating, "In today's restaurant climate, it is a fair question, but thankfully one that does not pertain to us." Still, per Technomic, sales at Black Angus have declined by close to 29% between 2018 and 2023. Just last year, sales decreased by 1.5%.

John Anderer
John Anderer is a writer who specializes in science, health, and lifestyle topics. Read more about John