NEW YORK OFFICE: Contributors to this article include Grace Kim and Mia Thompson
After an impressive seven-year dominance, Olive Garden has been dethroned as the leading casual dining restaurant in the United States.Â
The Italian-inspired chain, renowned for its endless breadsticks and pasta-laden menu, has slipped to second place in 2024 based on total revenue.
Founded in 1982 in Orlando, Florida, Olive Garden has steadily gained popularity as a family dining destination. It held the number one position since 2018. However, a revitalized Texas Roadhouse has claimed the revenue title for the first time, signaling a shift in consumer preferences from marinara to meat.
The steakhouse chain generated $5.5 billion in revenue from nearly 650 U.S. locations, marking a 15 percent increase from the previous year. To accommodate its expanding customer base, Texas Roadhouse opened 26 new restaurants in 2024.
In contrast, Olive Garden reported $5.2 billion in revenue from just under 1,000 locations, adding 15 new sites. This figure fell short of expectations, as the Italian chain had projected an 8.8 percent growth in sales heading into 2024, but ultimately saw only a 0.8 percent increase last year.
To enhance its sales performance, Olive Garden has introduced a new delivery option through Uber for customers within eight miles of its restaurants and launched a never-ending pasta promotion.
Despite the changes, Darden Restaurants, Olive Garden’s parent company, likely remains unfazed by this shift in rankings, as it owns both chains.
The top five list for consumer spending also includes Chili’s, Applebee’s, and Buffalo Wild Wings, all of which reported over $4 billion in sales last year. Chili’s, in particular, experienced a remarkable resurgence, achieving a 31 percent increase in orders during its third quarter after revamping its menu and enhancing its social media presence.
However, not all casual dining establishments enjoyed success in 2024. Outback Steakhouse reported unexpected declines in sales compared to its steak-focused rivals. The brand’s higher menu prices have contributed to a drop in stock value for its parent company, Bloomin’ Brands, which has fallen below $7.
Several competitors, including Hooters, TGI Fridays, On the Border, and Red Lobster, have filed for bankruptcy, resulting in the closure of hundreds of locations. Denny’s has also announced plans to permanently shut down several of its restaurants.