1. 24/7 Wall St. Insights

• Despite inflation, sales are up at restaurants and satisfaction in full-service restaurants increased
• Two steakhouses capture the top spot in customer satisfaction
• Find out if any of the restaurant chains mentioned here are among 2 Dividend Legends To Hold Forever

One of America’s long-time seafood restaurants is apparently ready to make a comeback. Red Lobster filed Chapter 11 bankruptcy protection in May and announced the closures of over 100 locations. But now, as it is being sold to a new owner, it could be ready to rejuvenate its brand and adapt to the current environment. Whether it succeeds or not remains to be seen.

One thing is certain, it would have to learn its lessons from the “$20 endless shrimp” debacle, which ended up causing significant losses to the chain. But Red Lobster is apparently the exception as despite inflation and customers making different dining out decisions, the industry’s sales are up. In fact, according to the National Restaurant Association, the food service industry is forecast to reach $1 trillion in sales in 2024.

For now, even as overall customer satisfaction with full-service restaurants is growing, Red Lobster remains one of the lowest-scoring restaurants in the American Customer Satisfaction Index — and scoring worse than last year. While two other restaurants have the same ACSI score as Red Lobster, one, The Cheesecake Factory, has the same score as last year and the other, IHOP, improved considerably.

To find how well customers are satisfied with large full-service restaurant chains nationwide, 24/7 Wall St. reviewed the ACSI’s Restaurant and Food Delivery Study 2024. We used the change in score from last year to break ties when possible. We added information on the 13 major chains in the report using mostly public records such as Security and Exchange Commission filings or the company’s own websites. The information includes ownership, sales in the most recently complete fiscal year, number of locations (from the most recent quarterly report when possible), and the type of restaurants. We also added popular menu items for each chain, which came from such sites as Ranker, Mashed, and others.

Customer satisfaction with full-service restaurants overall increased significantly, from a score of 81 (out of 100) in 2023 to a score of 84 this year — a 4% increase. The score for all other, smaller restaurant chains, is the same. (Also see: This Fast-Food Chain Has the Absolute Lowest Customer Satisfaction Score.)

Only two restaurants — both steakhouses — scored higher than the average and took the top spot: LongHorn Steakhouse and Texas Roadhouse. Both also improved considerably, climbing 4% from a score of 82 last year to 85 this year. The report notes that despite inflation, the two chains managed to either keep prices relatively low or provide better value — to the apparent satisfaction of their customers.

Olive Garden and Cracker Barrel are next in customer satisfaction, though the former improved considerably while the latter remained the same. Olive Garden introduced its “3 for Me” menu (again providing perceived value) and concentrated on service.

The restaurant that made the biggest stride is IHOP, which jumped 8% from a 72 score last year to 78 in 2024. IHOP, by the way, is bringing back its all-you-can-eat pancake deal for a limited time. Meanwhile Outback Steakhouse slipped the most, down 4% (from 83 to 80). The restaurant also announced it is closing half its restaurants in Hong Kong.

Why are we covering this

According to the National Restaurant Association, Americans love going out to eat with nine in 10 adults saying they enjoy going to restaurants. At the same time, consumers are more value conscious these days. With this in mind, it is interesting to see which chains managed to provide better customer satisfaction and which provided lower than average satisfaction.

13 (tied). Red Robin

• Customer satisfaction index score, 2024: 76 out of 100 (-1% from 2023)
• Customer satisfaction index score, 2023: 77 out of 100 (10th highest of 13 restaurants)
• Red Robin owner: Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB)
• Sales in most recent fiscal year: $1.3 billion
• Restaurant type: American casual dining
• No. of Red Robin locations (inc. int’l and franchises): 500+
• A few popular menu items: Whiskey River BBQ; Red’s Double; Saucy Bone-In Wings; Royal Red Robin Burger; Mountain High Mudd Pie; Red Robin Gourmet Cheeseburger; Whiskey River BBQ Ribs

13 (tied). Denny’s

• Customer satisfaction index score, 2024: 76 out of 100 (-1% from 2023)
• Customer satisfaction index score, 2023: 77 out of 100 (10th highest of 13 restaurants)
• Denny’s owner: Denny’s Corporation (NASDAQ: DENN)
• Sales in most recent fiscal year: $463.9 million (for company including Keke’s)
• Restaurant type: American casual dining
• No. of Denny’s locations (inc. int’l and franchises): 1,541
• A few popular menu items: The Grand Slamwich; Double Berry Banana Pancake Slam; Double Cheeseburger; French Toast Slam; All-American Slam; Moons Over My Hammy; Slamburger

11. Red Lobster

• Customer satisfaction index score, 2024: 78 out of 100 (-1% from 2023)
• Customer satisfaction index score, 2023: 79 out of 100 (6th highest of 13 restaurants)
• Red Lobster owner: Fortress Investment Group (sale in process from Thai Union Group following May Chapter 11 filing)
• Sales in most recent fiscal year: $2.4 billion in 2022
• Restaurant type: Seafood casual dining
• No. of Red Lobster locations (inc. int’l and franchises): ~650 (but over 100 locations are closing)
• A few popular menu items: Twin Maine Tails; Cheddar Bay Biscuits; Bar Harbor Lobster Bake; Fish and Chips; Lobster Lover’s Duo; Cajun Chicken Linguine Alfredo; Lobster Dip

10. The Cheesecake Factory

• Customer satisfaction index score, 2024: 78 out of 100 (+0% from 2023)
• Customer satisfaction index score, 2023: 78 out of 100 (9th highest of 13 restaurants)
• The Cheesecake Factory owner: Cheesecake Factory Inc. (NASDAQ: CAKE)
• Sales in most recent fiscal year: $2.6 billion (Cheesecake Factory restaurants only)
• Restaurant type: American casual dining; cheesecake
• No. of The Cheesecake Factory locations (inc. int’l and franchises): 340
• A few popular menu items: Ultimate Red Velvet Cake Cheesecake; Jamaican Black Pepper Shrimp; White Chocolate Raspberry Truffle Cheesecake; Ahi Poke Nachos; Macaroni and Cheese Burger; Cajun Jambalaya Pasta; Shepherds Pie

9. IHOP

• Customer satisfaction index score, 2024: 78 out of 100 (+8% from 2023)
• Customer satisfaction index score, 2023: 72 out of 100 (13th highest of 13 restaurants (the lowest))
• IHOP owner: Dine Brands (NYSE: DIN)
• Sales in most recent fiscal year: $822.7 million (for all brands)
• Restaurant type: American casual dining; pancake house
• No. of IHOP locations (inc. int’l and franchises): 1,657
• A few popular menu items: Breakfast Sampler; Original Short Stack Buttermilk Pancakes; Original French Toast; Chicken & Waffles; Belgian Waffle; Big Steak Omelette

7 (tied). Buffalo Wild Wings

• Customer satisfaction index score, 2024: 79 out of 100 (+0% from 2023)
• Customer satisfaction index score, 2023: 79 out of 100 (6th highest of 13 restaurants)
• Buffalo Wild Wings owner: Inspire Brands LLC (owned by private equity Roark Capital Group)
• Sales in most recent fiscal year: $4.0 billion
• Restaurant type: American casual dining; sports bar
• No. of Buffalo Wild Wings locations (inc. int’l and franchises): 1,300+
• A few popular menu items: 10 Traditional WIngs + Fries; All American Cheeseburger; Buffalo Ranch Chicken Wrap; 6 Boneless WIngs + Fries; Smoked Brisket Burger

7 (tied). Applebee’s

• Customer satisfaction index score, 2024: 79 out of 100 (+0% from 2023)
• Customer satisfaction index score, 2023: 79 out of 100 (6th highest of 13 restaurants)
• Applebee’s owner: Dine Brands (NYSE: DIN)
• Sales in most recent fiscal year: $822.7 million (for all brands)
• Restaurant type: American casual dining
• No. of Applebee’s locations (inc. int’l and franchises): 1,642
• A few popular menu items: Bourbon Street Chicken and Shrimp; Boneless Wings; Classic Broccoli Chicken Alfredo; Shrimp ‘n Parmesan Sirloin; Quesadilla Burger; Chicken Wonton Tacos; Triple Chocolate Meltdown

6. Outback Steakhouse

• Customer satisfaction index score, 2024: 80 out of 100 (-4% from 2023)
• Customer satisfaction index score, 2023: 83 out of 100 (the highest of 13 restaurants)
• Outback Steakhouse owner: Bloomin’ Brands, Inc. (NASDAQ: BLMN)
• Sales in most recent fiscal year: $2.3 billion in U.S.
• Restaurant type: Steakhouse
• No. of Outback Steakhouse locations (inc. int’l and franchises): 688 in U.S.
• A few popular menu items: Victoria’s Filet Mignon & Lobster; Seared Pepper Ahi; Perfectly Grilled Salmon; Spicy Jammin’ Meatloaf; Caramel Mustard Glazed Pork Chops; Sydney Shrooms; Butter Cake

5. Chili’s

• Customer satisfaction index score, 2024: 80 out of 100 (+4% from 2023)
• Customer satisfaction index score, 2023: 77 out of 100 (10th highest of 13 restaurants)
• Chili’s owner: Brinker International, Inc. (NYSE: EAT)
• Sales in most recent fiscal year: $3.6 billion
• Restaurant type: American Tex-Mex casual dining
• No. of Chili’s locations (inc. int’l and franchises): 1,566
• A few popular menu items: Chicken Bacon Ranch Quesadillas; Big Mouth Bites; Chicken Fajitas; Crispy Honey-Chipotle Chicken Crispers; Southwestern Eggrolls; Quesadilla Explosion Salad; Molten chocolate cake

4. Cracker Barrel

• Customer satisfaction index score, 2024: 82 out of 100 (+0% from 2023)
• Customer satisfaction index score, 2023: 82 out of 100 (2nd highest of 13 restaurants)
• Cracker Barrel owner: Public (NASDAQ: CBRL)
• Sales in most recent fiscal year: $3.4 billion
• Restaurant type: Southern country casual dining
• No. of Cracker Barrel locations (inc. int’l and franchises): 660
• A few popular menu items: Momma’s Pancake Breakfast; Chicken n’ Dumplins’; Meatloaf; Grilled Chicken Tenders; Country Fried Steak; Roast Beef; Chicken Fried Chicken; Southern Fried Chicken

3. Olive Garden

• Customer satisfaction index score, 2024: 83 out of 100 (+4% from 2023)
• Customer satisfaction index score, 2023: 80 out of 100 (5th highest of 13 restaurants)
• Olive Garden owner: Darden Restaurants, Inc. (NYSE: DRI)
• Sales in most recent fiscal year: $5.1 billion
• Restaurant type: Italian-American casual dining
• No. of Olive Garden locations (inc. int’l and franchises): 920
• A few popular menu items: Chicken Alfredo; Chicken and Shrimp Carbonara; Tour of Italy; Shrimp Alfredo; Lasagna Classico; Chicken Parmigiana; Eggplant Parmigiana

1 (tied). Texas Roadhouse

• Customer satisfaction index score, 2024: 85 out of 100 (+4% from 2023)
• Customer satisfaction index score, 2023: 82 out of 100 (2nd highest of 13 restaurants)
• Texas Roadhouse owner: Public (NASDAQ: TXRH)
• Sales in most recent fiscal year: $4.6 billion (including about 50 Bubba’s and Jaggers locations)
• Restaurant type: Steakhouse
• No. of Texas Roadhouse locations (inc. int’l and franchises): 650
• A few popular menu items: Ribeye steak; Ribs; Steak Filet Salad; Sirloin and Shrimp combo; Fresh Rolls and Honey Cinnamon Butter; Tater Skins; Country Fried Sirloin

1 (tied). LongHorn Steakhouse

• Customer satisfaction index score, 2024: 85 out of 100 (+4% from 2023)
• Customer satisfaction index score, 2023: 82 out of 100 (2nd highest of 13 restaurants)
• LongHorn Steakhouse owner: Darden Restaurants, Inc. (NYSE: DRI)
• Sales in most recent fiscal year: $2.8 billion
• Restaurant type: Steakhouse
• No. of LongHorn Steakhouse locations (inc. int’l and franchises): 575
• A few popular menu items: Outlaw Ribeye; Parmesan Crusted Chicken; The LongHorn Porterhouse; Flo’s Filet; Wild West Shrimp; Cheddar Stuffed Mushrooms; Chocolate Stampede

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