4 Steakhouse Chains That Have Increased Their Prices the Most
It's no secret that restaurants have become more expensive in the past year. In April alone, the price of dining out rose by 7.2%—the steepest year-over-year increase in more than forty years, according to the U.S. Bureau of Labor Statistics.
Limited-service and full-service restaurants have been contending with record-setting increases in the cost of ingredients. Between April 2021 and April 2022, prices for meats, poultry, fish, and eggs shot up 14.3%, yielding the largest 12-month price increase for that category of groceries since 1979.
Steakhouse chains, in particular, have been feeling the pinch. Not only has the price of beef increased in the past year (due in part to drought and forage conditions), but beef production is expected to decrease sharply in 2023, and prices to reach all-time highs.
To keep pace with inflation and the ever-rising cost of red meat, steakhouse brands have been steadily dialing up menu prices in the past year. Here's a look at four chains that have increased their prices the most.
And don't miss 5 Worst Steakhouse Chain Orders To Stay Away From Right Now.
The Florida-based steakhouse chain increased menu prices (on select items) by 3.4% in March. So far, however, the price hikes have not impacted store traffic, according to CFO and COO Kristy Chipman.
Ruth's Chris posted comparable year-over-year sales increases of 41.5% for the most recent quarter. A T-bone steak at Ruth's Chris Steakhouse currently goes for $60.75.
Following price hikes in May and November of last year, Texas Roadhouse announced a third round of increases in early 2022. The menu adjustments took effect in April, totaling 3.2%, but customer traffic remains as strong as ever.
Consequently, Texas Roadhouse will be staying the course on its full-year commodity inflation guidance of 12% to 14%.
Outback's parent company Bloomin' Brands tested out a 3% menu price increase in late 2021, but then adjusted it to 5% in early 2022. The price hike will remain in effect for the rest of the year, according to CFO Chris Meyer.
"Given that we had not taken a material menu price increase since 2019, we are confident that 5% is appropriate," Meyer said in a statement.
So far, it doesn't look as though the price adjustments have scared customers off. Outback reported comparable year-over-year sales growth of 9.2% in its most recent quarter.
In an early 2022 interview with FSR Magazine, Logan's Roadhouse CEO Jim Mazany announced that "very minimal" price increases had been implemented at the steakhouse chain, following its acquisition by Fortress Investment Group in 2020.
Mazany credits the price hike—along with a recent menu overhaul— with improving Logan's value proposition.
While steak prices at the chain appear to be holding steady for now, the cost of Logan's Ribeye cut recently increased by 4.15%, according to PriceListo. At $27.85 a serving, it's about $5 more expensive than what you can get at Outback, and nearly $7 more than Texas Roadhouse.