The budget-friendly American steakhouse that is booming despite industry-wide restaurant closures

Americans have been hit hard in recent years by rising menu prices as restaurants pass on rising food and labor costs.

But Texas Roadhouse has fought to keep prices low, offering steak, potatoes and vegetables for about $20 to $25 — and it’s paying off as families flock to the chain.

The 31-year-old company, founded in Indiana rather than Texas, reported an 8.5 percent increase in sales from July to September compared to the same period in 2023, continuing momentum from earlier this year.

Such a jump means that millions of extra steaks were sold in the 655 restaurants across the US last year.

This success is in stark contrast to many of its competitors. Sales are down at Olive Garden, Starbucks and TGI Friday’s.

Texas Roadhouse fans have taken to Reddit to sing the chain’s praises

Meanwhile, McDonald’s only managed a 0.1 percent increase in sales, thanks only to its wildly popular $5 meal deal.

Unlike most chains that face backlash due to rising prices, Texas Roadhouse is winning praise on social media.

On Reddit, a thread “Texas Roadhouse never disappoints” has 5,700 upvotes.

Another shows a photo of a steak dinner with the subtitles ‘incredible value for $22 at Texas Roadhouse’ – and users lined up to agree.

“She’s a beauty,” one user commented on the photo of the steak.

Longhorn Steakhouse, Texas Roadhouse’s main rival – with just under 600 locations – is also seeing sales increase, but by a more modest four percent.

Both chains have a history of performing well during economic recessions.

It may seem surprising that steakhouses are doing well in tough times, but the two brands have accomplished what many restaurants strive for: making customers feel like they’re getting their money’s worth.

Compared to local establishments or high-end chains like STK Steakhouse, the two chains are “very affordable,” Jim Salera, a research analyst at Stephens, told me. CNN.

The average check per person at Longhorn is $26 and for Texas it is $22.

Steak is still considered a luxury, so a decent piece of meat, along with potatoes and vegetables, for that price is good value, experts say.

A busy Texas Roadhouse restaurant

Texas Roadhouse (left) and Longhorn Steakhouse, both other great steaks for under $25

“For their core consumer, it really represents an affordable luxury,” Salera said.

A recent note from Bank of America discussing LongHorn’s results echoed the sentiment: “Consumers recognize the value steak provides.”

Most restaurants have imposed large price increases. McDonald’s, for example, has increased prices by an average of 40 percent since 2019, the company said recently.

Things are different at LongHorn and Texas, BTIG restaurant analyst Peter Saleh told CNN.

He said they have been trying to bring prices below inflation “for some time.”