Olive Garden Loses Its Top Spot As The Number One Casual Dining Restaurant In The US
Between 2018 and 2024, Olive Garden was the United States' largest casual dining chain in the U.S. in terms of systemwide sales per chain restaurant. However, there's a new sheriff in town: Texas Roadhouse has just taken over the top spot for the first time in seven years. Interestingly, Olive Garden saw hardly any sales increase between 2023 and 2024 despite opening 15 new restaurants, and the plateau in growth gave Texas Roadhouse the perfect opportunity to surpass the Italian-style chain.
Texas Roadhouse, known for its affordable, good-quality steaks, Southern-style menu options, and famously delicious dinner rolls, has 664 restaurants. It saw a sharp sales jump of 14.7% over the last year, helping it land in the top spot with total U.S. sales of just under $5.5 billion. In comparison, Olive Garden's sales were just under $5.2 billion, meaning Texas Roadhouse far outperformed its next-best competition. Olive Garden's lower ranking reportedly stems from losing low-income customers due to added living expenses like inflation, though the chain says it's bringing back certain specials to help get more people in the door.
Texas Roadhouse has shown steady growth in recent years
Texas Roadhouse's increased sales stem from its increase in locations; the chain opened 26 new restaurants last year. The chain has also focused more on where it invests in money, putting a greater emphasis on business operations and staffing. In Q4 of 2024, Texas Roadhouse saw a massive 65% increase in operations income compared to the previous year's fourth quarter. Beyond opening new restaurants, Texas Roadhouse saw 14 new franchise owners in 2024, suggesting there is business-owner interest in investing in the brand.
Olive Garden's sister restaurant and Texas Roadhouse' competition, Longhorn Steakhouse, also saw a substantial increase in sales — a year-over-year bump of more than 7%, landing it a spot on the list above Outback Steakhouse. Despite the rise in beef prices since the pandemic, it seems there is still a market among U.S. consumers for a decent steak, helping push Texas Roadhouse further up the ranks.