The Popular Steakhouse Chain That's Been Struggling Since The Start Of 2025

It's no secret that the restaurant industry has faced significant challenges since 2020. From the shuttering of dine-in locations during COVID to staff shortages and rising food chain prices, it has been a turbulent time for the industry. Even the most popular restaurants are feeling the strain, with one prime example being the classic steak joint, Texas Roadhouse.

The beloved restaurant, famed for its signature steak sauce, has reportedly seen a 2.9% sales growth in the first seven weeks of 2025 (per Restaurant Business Online). While that number is positive, it's a far cry from its usual performance — until now, the lowest same-store sales growth since 2020 had been 7%. In an earnings call, Texas Roadhouse president Chris Monroe noted that this trend has been felt nationwide. Company higher-ups have attributed the slowdown to an especially harsh winter and lingering effects of COVID and flu season.

This pattern is reflected across the industry. A surprisingly strong end to 2024 has been followed by a flat start to 2025. January and February are often considered slow months for restaurants, coming on the heels of the holidays — typically the most expensive time of year for many consumers — and bringing inclement weather that keeps people in the comfort of their homes. However, Texas Roadhouse's January growth was 5.5%, and it wasn't until February that sales truly slumped. By comparison, December saw a 7.9% increase.

The slowdown has not dampened executives' enthusiasm or their long-term expectations for the restaurant, though it has prompted some introspection. "I just believe we're in a little bit of an environment right now where the consumer is just acting a little bit differently," senior director of investor relations Michael Bailen said on the earnings call.

Restaurants have also seen alcohol sales decline over the past year, with young people moving away from booze in record numbers. Meanwhile, food costs continue to rise, with eggs standing out as a particularly striking example. Prices have soared so high that some consumers are joking about raising their own chickens, and many restaurants have started adding surcharges for egg dishes.

The good news for Texas Roadhouse fans is that the chain isn't likely to follow in the footsteps of other downsizing restaurants anytime soon. While Red Lobster closed over 50 locations in 2024 and TGI Fridays is also closing locations, Texas Roadhouse still plans to open 30 new restaurants in 2025 across its three brands: Texas Roadhouse, Bubba's 33, and Jaggers. However, it does plan to raise prices by 1.4% in the second quarter of the year — so long-time diners should prepare to stomach (forgive the pun) that financial hit if they want to keep enjoying those signature steaks.