The 10 largest casual-dining chains by systemwide sales

Most of the biggest casual-dining chains lost customers last year as inflation-weary Americans cut back on their restaurant spending. While many brands pushed value offers in an effort to attract guests, the standout performers excelled in operations rather than discounting. The challenging environment led to a shakeup in the top 10.

All data is from Technomic's Top 500 Chain Restaurant Report.

2023 U.S. sales: $1.6 billion, up 3%

2023 U.S. units: 506, down 1%

Red Robin began a turnaround effort last year under new CEO G.J. Hart that included upgraded burgers and operational changes. Bussers and hosts also returned to its restaurants after the positions were axed by a former regime. But sales took a temporary hit after the chain stopped using the MrBeast Burger virtual brand.

2023 U.S. sales: $2.2 billion, down 8.1%

2023 U.S. units: 649, down 2%

2023 will be remembered as the year that broke Red Lobster. Sales at the seafood chain fell sharply as management raised prices and scrambled to improve service. A $20 all-you-can-eat shrimp deal was a successful traffic driver, but did major damage to the bottom line. The chain filed for bankruptcy protection in May. 

2023 U.S. sales: $2.6 billion, up 2.7%

2023 U.S. units: 216, up 2.4%

Not one to overreact to market fluctuations, The Cheesecake Factory largely stuck to what it does best, serving a broad menu in an eclectic atmosphere. But it was not immune to the traffic problems affecting the sit-down segment, and in May announced that it was trying something new: a loyalty program, Cheesecake Rewards, designed to get guests to visit more often.

2023 U.S. sales: $2.8 billion, up 10.2%

2023 U.S. units: 580, up 2.8%

LongHorn had the second-highest sales growth in the top 10 and is nipping at the heels of No. 6 Outback Steakhouse. The chain has clearly benefited from parent company Darden Restaurants’ emphasis on operations. It has also kept its head down. In declining an interview request from Restaurant Business, a spokesperson said, “They prefer to keep a low profile and focus on the business.”

2023 U.S. sales: $2.8 billion, up 3.5%

2023 U.S. units: 688, down 0.7%

A more cautious consumer hurt Outback last year, but it also lost share to competitors like LongHorn and Texas Roadhouse. The performance prompted an activist investor to begin pushing parent Bloomin’ Brands for changes at the chain. Starboard Value said Outback needs to improve its food and service and change its marketing to win back customers.

2023 U.S. sales: $4 billion, up 0.5%

2023 U.S. units: 1,264, up 1.8%

Despite opening more than 20 new locations, the sports bar chain’s sales were virtually flat in 2023, and it was leap-frogged on the ranking by Chili’s. In an apparent nod to consumer shifts, the brand has been putting more muscle behind its scaled-down Buffalo Wild Wings Go concept, which focuses on off-premise.

2023 U.S. sales: $4 billion, up 6.3%

2023 U.S. units: 1,230, up 0.2%

It was a bounce-back year for Chili’s as the strategy put in place by new CEO Kevin Hochman began to take hold. The chain refocused on core menu items like burgers and chicken tenders and worked to simplify its operations. It also pushed value, returning to the airwaves with ads for a $10.99 combo meal.

2023 U.S. sales: $4.4 billion, down 0.1%

2023 U.S. units: 1,536, down 2.1%

Applebee’s closed more than 30 restaurants last year, continuing its process of weeding out weaker stores. It appealed to price-conscious consumers with too-good-to-be-true deals like $1 margaritas, but failed to deliver positive traffic. It fell from its perch as the second-largest casual-dining chain.

2023 U.S. sales: $4.8 billion, up 13.8%

2023 U.S. units: 638, up 3.9%

What was that about a weaker consumer? Nothing could stop Texas Roadhouse, which continued to rack up sales and traffic by limiting its price hikes and keeping restaurants well-staffed. It also opened 24 locations, an impressive feat for a chain of its size. It is within shouting distance of No. 1 Olive Garden and will probably overtake it if it maintains this pace.

2023 U.S. sales: $5.1 billion, up 8.8%

2023 U.S. units: 908, up 2.4%

Despite losing some business from lower-income guests, Olive Garden had a nice year. The Darden-owned brand remained focused on execution while appealing to customers with abundance rather than bargain prices. It brought back a popular bottomless pasta promotion at a $13.99 price point designed to protect margins.