Olive Garden Has Officially Been Dethroned As America's Top Casual Dining Chain
Olive Garden is an American institution. The restaurant reigned supreme in the American fast casual dining scene for seven years, but according to a new report, Texas Roadhouse has come for the crown. Technomic's recent Top 500 Chain Restaurant Report revealed that the popular steakhouse chain is now the top fast casual dining spot in the United States.
Sales for the steakhouse chain surged 14.7% last year: System-wide sales raked in a boggling $5.5 billion. Olive Garden is still seeing growth, but at a more meager .8%. While the chain still racked up impressive sales — a total of 5.2 billion — the Italian-American family restaurant is feeling the pinch.
Industry analysts attribute some of Texas Roadhouse's success to its efforts to keep prices low. Like many restaurants, Texas Roadhouse recently bumped up prices to help combat inflation, but only by a meager .9%. Industry analysts say that customers still turn to Texas Roadhouse for value and high-quality, USDA Choice steaks. And fast casual is a good place to be right now — even as customers tighten their wallets.
Two major steakhouse chains saw success
Like many chains, Olive Garden is struggling to keep up with inflation without scaring away customers with steep prices. Recently, the chain brought back its popular never-ending pasta option to get customers through the door. The restaurant had high hopes for 2024, but Rick Cardenas, CEO of Olive Garden's parent company, Darden Restaurants, admitted in a 2023 report that the company was working with "a tough operating environment."
However, one Darden Restaurants brand saw major success in 2024, and its steep sales show a theme. Its second most popular chain, LongHorn Steakhouse, saw 7.2% sales growth. LongHorn now resides at sixth place among Technomic's ranking of America's top fast casual chains.
Steak sales rose post-pandemic, and both Texas Roadhouse and LongHorn Steakhouse still seem to be riding the wave. That doesn't mean that having "house" in your name guarantees automatic success, though. Outback Steakhouse saw a slump: Its sales fell 3.9%.