I'll admit that I used to eat out quite a bit, but I've been making an effort to cook more in recent months for both health and financial reasons. And when I do cave and grab takeout after a long day, more often than not, I choose a locally owned restaurant. The food just tastes more like, well, real food. It hasn't always been that way.
Once upon a time, Chili's was my go-to. It's where my friends and I would hang out before a movie or after an afternoon of shopping at the mall when I was in my teens and twenties, but I don't even eat there anymore. Service went downhill with the pandemic, and then they took my two favorite items off the menu a couple of years ago. I've eaten there once since, and it was barely edible.
As a matter of fact, the only national chain that I've eaten at recently that has consistently offered truly tasty food of decent quality and exceptional service is Texas Roadhouse. I guess that's one reason why it's become the new top casual dining chain in the United States.
While restaurants like Red Lobster and TGI Friday's are filing for bankruptcy, and others like Cracker Barrel, Applebee's, Outback, Denny's, and Red Robin are closing restaurants due to plummeting sales, Texas Roadhouse is actually doing pretty darn well.
According to Technomic's annual report on the Top 500 largest restaurant chains in the U.S., Olive Garden, which has been the number one chain in the country since 2018, fell to number two last year, with Texas Roadhouse not only becoming number one but seeing a 14.7% increase in sales for a total of just under $5.5 billion. It also opened 26 new locations. For what it's worth, Olive Garden opened 15 new restaurants last year and only saw a 0.8% increase in sales for a total of $5.15 billion.
According to the Texas Roadhouse website, "As of December 31, 2024, the Company and its franchisees operate 784 restaurants system-wide in 49 states, one U.S. territory, and ten foreign countries, including 722 Texas Roadhouse restaurants, 49 Bubba’s 33 restaurants, and 13 Jaggers restaurants."
Restaurant Business states that Texas Roadhouse, which is based in Louisville, Ky., "has been growing quickly for years. It has benefited from consumer demand for steak coming out of the pandemic, but has helped its cause by investing in staffing and operations while keeping its prices lower than inflation."
The Daily Meal suggests other reasons why Texas Roadhouse is popular, including the ambience: "every location has a unique mural tailored to the community, making the franchised chain feel more like part of the neighborhood." It also points out that the chain offers a steak for every price point, and while some are better than others, the flavor is usually always on point.
Much to my surprise, Chili's came in at number three with a 15% rise in sales for a total of $4.57 billion, followed by Applebee's, which saw a 5.8% decrease in sales but still managed to earn $4.1 billion. Buffalo Wild Wings rounds out the top five with a 2.4% increase for a total of $4.05 billion in sales.
"The bar and grill chain is in the midst of a major comeback thanks to a refreshed menu and value-focused marketing that has resonated with consumers," Restaurant Business says of Chili's. Maybe I'll have to give them a second chance, but if it could bring back its classic nachos, that'd help...
Restaurant Business also points out that it was a "tough year for the largest casual-dining chains," which comes on the heels of a story CNN did last week on how "America has lost its appetite for casual dining chains" overall. It blames the rising cost of menu items at a time when the average household has less disposable income. The article also points out that more people are opting to cook or visit "fast-food chains such as Chick-fil-A and Raising Cane’s, and fast-casual restaurants like Chipotle and Cava" these days.
CNN also quotes Raymond James analyst Brian Vaccaro, who says, "In a time-starved world, people want something to be quick at an affordable price" and points out that people are opting to hit the drive-thru rather than sit down for a meal." I tend to think that's a big part of the issue myself, at least based on my own personal experience in my current stage of life. There are few days that I just have time to sit down and eat a meal without multitasking, and most days I eat by myself, so what's the point in trying? I have many friends in the same position, and it seems like we're not alone.
The New York Times also suggests that this isn't the best indicator for human connection at a time when the population seems lonelier than ever. It points to a survey from February that says about a quarter of people in the United States say they eat at casual dining restaurants less often than they used to, and 29% of those people say they rarely dine out with friends and family anymore.
And this is just my guess, but it seems like people are trying to be a bit healthier these days, so that could be another reason why these chains are on the decline. When I cook something from scratch, I know exactly what's in it and can control ingredients like sugar and salt. That's not the case when I dine out.
So, what say you? Do you eat out much? What is your go-to restaurant?
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