The USDA published a revised food pyramid earlier this month, placing protein and vegetables at the very top and shifting whole grains to the bottom.
The realignment was pleasant news for Fogo de Chão CEO Barry McGowan. “Just put ‘Fogo Food Pyramid’ on it,” he quipped during an interview at the ICR conference last week.
Indeed, the government’s new dietary guidelines fall right into Fogo’s chophouse. The 88-unit Brazilian steakhouse chain specializes in fire-roasted meats sliced tableside in the Churrasco tradition. It also offers a buffet of seasonal produce and other items known as the Market Table. It would appear to be well-positioned to satisfy consumers who are looking to get more of those things in their diet, per the government’s recommendation.
“Whole foods are at the basis of this brand. It's been that way for 46 years,” McGowan said during a presentation at ICR. “Nutrient-dense food, [and] how you dine is up to you. This is really why we drive this demographic.”
The protein craze is not the only dining trend playing in Fogo’s favor. The chain has flourished in recent years as consumers seek out experiential restaurants and hands-on service. It has also benefited from a strong market for steak chains. Last year, Fogo’s systemwide sales rose 15%, and it opened a record 16 restaurants globally.
While it aligns with some trends, it’s bucking convention in other areas. For instance, while many restaurants have reported a decline in alcohol sales, Fogo has seen alcohol mix rise to about 14% of sales, from 10% previously, McGowan said. It is now developing more programming centered on the bar, while also appealing to non-drinkers: It will soon host its first bar event featuring non-alcoholic botanical cocktails.
A rendering of the Fogo opening in Peabody, Massachusetts. | Courtesy of Fogo de Chão
Dallas-based Fogo also sees some upside in consumers’ growing use of GLP-1 weight-loss drugs like Ozempic. McGowan said these drugs will ultimately be good for Fogo, not only because they increase the user’s need for protein, but also because they just make people feel better.
“When people feel great, they come out and socialize,” McGowan said, adding that GLP-1s are “a medical miracle.”
And while he acknowledged that users of the drugs may eat less overall, he said they will most likely cut back on fast food while preserving social outings at places like Fogo.
Recent data from researcher Circana supports at least some of that thesis. It found that GLP-1 users are still going out to eat the same number of times, but are ordering more mains and fewer sides, and gravitating toward healthier, nutrient-dense options like vegetables, fruits and smoothies.
Persistent beef inflation is another headwind that McGowan said Fogo is uniquely prepared to manage. Because the chain butchers and prepares its meat in-house, it saves 600 to 800 basis points on beef, McGowan said. It can buy off-size cuts at lower prices as well as surplus supply left by other restaurants that are cutting back on beef. It can also mix in alternative, lower-cost proteins like lamb chops.
That way, “I’m not taking anything away from the guest. I’m offering you more,” McGowan said.
In 2025, Fogo’s cost of goods rose just 1.5%, and its food and labor costs accounted for 55% of total sales, 10 points less than the average full-service restaurant chain, according to company data presented at ICR.
That has allowed the chain to keep price increases to a minimum. Over the past five years, it has raised prices by about 2.8% annually, McGowan said.
And though Fogo is firmly in the upscale casual-dining segment, McGowan feels the menu offers a good value. There is a burger starting at $10, and access to the all-you-can-eat Market Table starts at $18.
Still, it has had to find a balance on pricing. In 2024, Fogo offered its popular limited-time Best of Brazil menu for $39 per person, a price that turned out to be “way too popular,” McGowan said. It brought it back in 2025 for $49, which generated half the traffic but was more profitable.
The average price for Fogo’s full, all-you-can-eat experience is $59, a competitive number when compared to other upscale steak concepts, McGowan said.
Fogo’s unique formula has it primed to continue growing. The chain plans to grow its footprint by 12% to 15% each year, with 14 to 16 new locations expected in 2026, funded entirely through its own cash flow. In the U.S., it will look to build out existing markets, and internationally, it is entering new markets including Chile, Costa Rica and Honduras.
These openings are supported by an employee pipeline that is mapped out three years in advance. Fogo’s line of sight to new unit openings extends just two years by comparison, meaning it has a bigger prospective employee pool than it has restaurants to put them in at the moment.
McGowan said the brand’s decision to remain 140% staffed during the early part of the pandemic created a foundation for that strong pipeline. “Our business is people,” he said. “If your process isn’t built around developing next-level leadership, you can’t scale.”
Fogo is also investing in technology. Last year it launched its first loyalty program, Fogo Rewards, which gives members a reward on their first and second returning visit per membership year. The rewards are generous: On their first visit after joining, members who purchase the chain’s full Churrasco experience can choose to get a second for half off, among other options. But the company said these customers visit more often and spend more when they do. Ten percent of customers now use the loyalty program.
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