During this election year, an upstart from the South has received stellar polling numbers. Orlando, Florida-based LongHorn Steakhouse has become a prime candidate to unseat rivals like Texas Roadhouse as America’s preferred restaurant chain for ribeyes, T-bones, and sirloins.
The American Customer Satisfaction Index (ACSI) shows LongHorn Steakhouse and Texas Roadhouse both rose 4% in the past year, reaching 85% and tying for the top spot among full-service restaurants. Plus, Longhorn’s 2023 systemwide sales were up 10.2%, reaching $2.8 billion, according to Technomic.
“LongHorn is also investing in improving its service,” said Andre Benjamin, VP of strategy at consumer insights firm HundredX. “Last year, parent company Darden Restaurants rolled out AI tools to forecast customer traffic better and optimize overall service.
“The move has apparently paid off,” he told The Food Institute.
Per Placer.ai findings, during the first quarter of 2024, LongHorn saw year-over-year foot traffic growth of 3.8%. During May, visits were up 6.4% to the steakhouse chain. According to HundredX data, “net favorability” towards LongHorn’s taste is significantly ahead of the industry average.”
In March 2024, LongHorn reached the 80% mark in “net favorability toward taste,” edging Texas Roadhouse and significantly outpacing Outback Steakhouse (approx. 68%).
“Taste is still king,” Benjamin said. “It’s no coincidence that LongHorn, which posted a 4 percent increase in same-store sales in June – higher than any of Darden’s other restaurants – consistently outranks competitors on the taste of its food.”
The steak chain, which was founded 43 years ago, also earns high marks for offering an atmosphere that some say is more refined than casual-dining competitors.
“The fit and finish of (LongHorn’s) dining room décor, and the well-trained service staff give the perception of a higher-end steakhouse,” said Spencer Michiel, a restaurant tech consultant at Back of House. “The right atmosphere can set the tone for a great guest experience.”
Now, LongHorn simply needs to master the carryout experience, Michiel added, which could increase an important revenue stream moving forward.
Indeed, work remains if LongHorn hopes to overtake Texas Roadhouse as America’s top casual-dining steak chain. According to Technomic, Texas Roadhouse is coming off a year in which its sales reached $4.8 billion – up nearly 14% year-over-year – and it added two dozen new locations.
Experts also say that LongHorn must improve its perception of value if it hopes to continue its ascent.
“LongHorn’s growth outlook is falling among diners making under $50K annually,” Benjamin said. “So, while LongHorn is improving its service and pleasing customers with great-tasting food, it may need to consider offering new deals to keep lower-income customers returning for more.”
The Food Institute Podcast
Tom Hamill, a food and beverage senior analyst for RSM US LLP, joined The Food Institute Podcast to recap the 2024 Summer Fancy Food Show. Hamill shares his thoughts on burgeoning trends from the show and how emerging specialty food brands can best navigate economic factors in the years to come.
