Whatever Happened To Lone Star Steakhouse?

When a restaurant chain is shutting down, it doesn't simply shutter the doors of every location all at once. Most chains die out slowly over time, leaving fans to wonder years later: What happened to their favorite eateries? Lone Star Steakhouse & Saloon is one American chain that has sadly fallen out of favor, mainly due to financial hardships. It was a Western-themed fast casual spot specializing in affordable steak, ribs, and dipped sandwiches. The chain was founded in 1989 by Jamie Coulter in Winston-Salem, North Carolina, and quickly expanded from there, reaching peak popularity in the 1990s with over 260 locations in 39 states.

Lone Star lacked the dark ambiance of fancy steakhouses, but made up for it with a distinctly Texan charm. Locations were known for offering buckets of free peanuts to customers, who were encouraged to just toss the shells onto the ground once they were done. The staff was also known to break out into line dances, shuffling across the peanut-riddled floors.

Unfortunately, nearly all Lone Star Steakhouse locations in the U.S. shut down by 2018. The final nail in the company's proverbial coffin was a long time coming, as the last few locations in states like Michigan, Illinois, Ohio, and North Carolina struggled to hold on for years before eventually succumbing to closures. It's a tale that might remind you of why the similar Ponderosa Steakhouse chain shut down.

While there was no official reason for Lone Star Steakhouse to fold, there was major speculation that more successful competing steakhouses like Texas Roadhouse and Outback Steakhouse contributed to the decline of the chain. Whether you think these popular chains are some of the best or worst steakhouses in the country, they may have had a leg up with branding. Lone Star struggled to set itself apart where marketing was concerned, frequently changing menu item names and hurting its brand awareness. Compared to staples like Outback's Bloomin' Onion and Texas Roadhouse's signature rolls with whipped cinnamon butter, perhaps Lone Star just wasn't memorable.

The food itself was also said to be inconsistent and lackluster, and left many customers disappointed. Lone Star didn't gain any more locations after the 1990s, likely due to market saturation of the casual steakhouse industry and a lack of sales. The company also became unfavorable on the stock market, which likely contributed further to the franchise's financial struggles. In 2006, the company was bought by new owners and stripped of its Old West theming, but a modern update didn't save it, and it filed for Chapter 7 bankruptcy in 2017.

Surprisingly, there is one Lone Star Steakhouse location that is still in operation as of this writing, although it will be rather hard to get to if you live in the mainland U.S. The last remaining restaurant is in Guam, an island territory of the United States located in the North Pacific Ocean.