15 Highest Quality Steakhouse Chains In The US
In this article, we shall discuss the 15 highest quality steakhouse chains in the US. To skip our detailed analysis of the global meat industry and a brief overview of the restaurant industry in 2023, go directly and see 5 Highest Quality Steakhouse Chains in the US.
According to a market research report by the OECD, the global meat market is estimated to have a total value of 375.9 billion in 2023, and is projected to reach $473.1 billion by 2028, at a CAGR of 4.3%. The next decade is expected to see a rampant growth in the global consumption of meat proteins, projected to amount to more than 14% by 2030 compared to the base period average of 2018-2022. This growth is largely to be driven by rising income and population growth. Furthermore, meat protein availability from beef, pork, poultry, and sheep meat is expected to surge by 5.9%, 13.1%, 17.8% and 15.7% respectively by 2030.
However, consumption is expected to take a nosedive in many high-income countries due to changing consumer preferences, greater levels of ageing, and slower growing populations, leading to a diminishing per capita meat consumption and a greater move towards consumption of higher valued meat cuts. One of the primary trends affecting major players in the meat industry like Beyond Meat Inc. (NASDAQ:BYND), Hormel Foods Corporation (NYSE:HRL), and Tyson Foods, Inc. (NYSE:TSN) is a global shift towards poultry, especially in lower income developing countries, owing to a lower price of poultry per unit as compared to other meat. In high-income countries, this shift represents an increasing preference for white meats which are considered much easier to prepare and are widely perceived as being the healthier option. Hence, in global terms, poultry meat is expected to make for more than 41% of all meat sources by 2030, representing a stark increase of 2% compared to the base period. The global shares of other meat products are lower: beef (20%), bacon (34%), and sheep mutton (5%). Furthermore, international meat trade is expected to pick up in countries in Asia and the Near East, where production is unlikely to be sufficient to meet demand. You can read more on trends affecting the meat industry in the next decade in our coverage of Top 20 Meat Producing Countries in the World.
The Potential in Cultivated Meat: An Analysis
According to a report by McKinsey, the fact that some of the highest quality steakhouse chains in the US bit into cultivated meat for the first time in 2022 has the potential to transform the global meat and restaurant industry in surprising new ways. Consumers will likely get luxurious and tantalizing kinds of meat, like Wagyu beef and bluefin tuna, for extremely affordable, standardized prices all across the world. The report predicts that by 2030, billions of pounds of the global meat supply could be provided by cultivated meat, with further implications for multiple sectors, like some of the highest quality steakhouse chains in the US. Cultivated meat has, in the span of a few decades, grown from a futuristic dream of a handful of academic scientists to a potentially mainstream global meat supply. Instead of relying on animals for meat, or equating different characteristics of plants with animal meat, cultivated meat is produced by acquiring minute samples of animal cells and growing them in a controlled environment. By systematically manipulating cell density and shaping techniques, the resultant product could replace the experience of eating conventional meat.
As biological science catalyzes an era of innovation, top players in the industry like Beyond Meat Inc. (NASDAQ:BYND), Hormel Foods Corporation (NYSE:HRL), and Tyson Foods, Inc. (NYSE:TSN) are diverting greater investments in the research and development of cultivated meat sources. They aspire to be able to reduce production cost by more than 99%. With regulatory authorities in the United States agreeing to regulate the product, the industry, which in the present only comprises a meagre handful of startups, was able to generate more than $350 million in investments from companies like Beyond Meat Inc. (NASDAQ:BYND), Hormel Foods Corporation (NYSE:HRL), and Tyson Foods, Inc. (NYSE:TSN). You can read more on companies offering cultivated alternatives to meat in our article 16 Biggest Lab-Grown Meat Companies. However, there are still certain preconditions which need to be met for cultivated meat to turn into a major industry, not including the fact that in order to scale it to even less than 1 percent of the global meat market, there is a need to invest tens of billions of dollars into the product. In this vein, the next decade is likely to entail companies vying to prove commercial viability of the product to the highest quality steakhouse chains in the US by relying on modest market penetration. In order to ensure profitability in the next decade, the industry must deal with potential concerns that arise around any novel food idea whilst ensuring deliciousness at the right price.
Ensuring Revenue Management for Restaurants: An Overview
Many of the top meat companies like Beyond Meat Inc. (NASDAQ:BYND), Hormel Foods Corporation (NYSE:HRL), and Tyson Foods, Inc. (NYSE:TSN) are contractually obligated to some of the highest quality steakhouse chains in the US and tend to generate a substantial portion of their revenue from the restaurant industry. The restaurant industry in the United States is facing a challenging time due to global supply chain constraints and immediate inflationary pressures. Although these issues have shown initial signs of abating, restaurant leaders are expecting expensive increases in labor and input costs over the next five years. Furthermore, as consumer demands continue to morph and evolve, restaurant leaders are under increasing pressure. In this vein, many restaurant chains are building up their revenue growth management (RGM) capabilities to resist potential headwinds and ensure profitability in times of crisis. RGM is an integral ingredient with immense potential for value creation during tough times, becoming incredibly salient during times when cost pressures form an impediment to profitable growth. You can read more on how restaurants are navigating the increasingly complex food landscape in our coverage of the 20 Most Popular Fast Food Restaurants In The World.
According to a report by McKinsey, there are four central areas which provide huge upside potential for RGM gains and they comprise menu offering, price architecture, value offers, and franchisee execution. They provide a more holistic alternative to the simple price hike strategy some of the highest quality steakhouse chains in the US have been following up till now to keep pace with rising costs. Brands are choregraphing decision making across elements like price, promotional offerings, and menu compositions, integrating components together into a seamless network geared to boost sales and optimize revenue management. This coordination can facilitate restaurants respond to near-term margin constraints whilst optimizing long-term brand health.
A butcher shop showcasing fresh meats and seafood for customers.
Our Methodology
To compile our list of the 15 highest quality steakhouse chains in the US, we decided to undertake a consensus-based approach using a diverse variety of credible sources and reviews (1, 2, 3, 4, 5, 6, 7). We then shortlisted more than 30 steakhouse chains which appeared most frequently during our research. Since quality is an incredibly multifaceted and complex phenomenon, we established a three-pronged criteria to measure the quality of each steakhouse chain; the criteria is premised on each chain's grade and source of meat (20 points), cooking techniques (15 points), and ambiance (10 points). We then proceeded to award each chain a cumulative score according to the aforementioned criteria and selected 15 chains which scored the highest points. Subsequently, we ranked each entry based on the total points scored, from lowest to highest. Where there was a tie, we broke it based on the chain's grade and source of meat.
To sum it up, we ranked the 15 highest quality steakhouse chains in the US based on their cumulative scores, using a consensus methodology. By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
15 Highest Quality Steakhouse Chains In The US
15. Ocean Prime
Average Score: 9
One of the highest quality steakhouse chains in the US, Ocean Prime has locations in California, Las Vegas, Texas, Missouri, Florida, and beyond. Known for its top-tier beef, Ocean Prime also has great ambiance and an exceptionally proactive service.
14. Rare Society Steakhouse
Average Score: 9
Often classified as a mini-chain, Rare Society Steakhouse has a high-end chef-driven heritage rooted in San Diego. The chain perfectly straddles the line between classic and contemporary and is known for its dry-aged rib-eyes and Australian Wagyu, grilled over wood-fired log boilers and served on the side of oysters Rockefeller and seafood towers.
13. Outback Steakhouse
Average Score: 11
Outback Steakhouse is an Australian-themed restaurant chain based in the US, with more than 700 locations across the country. Despite having a strong Australian theme, the cuisine is on the casual end of the steakhouse spectrum. The restaurant's 'Bloomin Onion' steak is one of its most loved menu offerings.
12. Fleming's
Average Score: 12
Fleming's is a fine-dining style steakhouse with an extensive menu, tantalizing wine bar, and exceptional service quality. The chain has more than 64 locations across the US and is famous for its medium-rare filet mignon made from Fleming's high quality beef procurement. The chain also has an eclectic wine collection.
11. Sizzler
Average Score: 13
Sizzler is known as one of the highest quality steakhouse chains in the US primarily due to its generous portion size, soothing ambiance, and affordable pricing. The restaurant specializes in hand-cut steaks, as well as surf and turf steak combos.
10. The Capital Grille
Average Score: 13
Known for its signature Gorgonzola and black truffle crusted dry-aged bone-in New York strip or the porcini rubbed bone-in ribeye with 15-year-aged balsamic, The Capital Grille is one of the highest quality steakhouse chains in the US. It is widely revered for the quality of its meat and the expertise of its meat cuts.
9. Shula's Steakhouse
Average Score: 15
Founded in Florida, Shula's Steakhouse was founded by NFL coach Don Shula. He established a nationwide standard for his restaurants with his special 'Shula Cut', which is an exclusive, all-premium Black Angus steak sourced from Graham Angus Farms in Georgia, and then aged, cut, and trimmed to incredibly complex parameters.
8. STK
Average Score: 16
STK, an extremally popular steakhouse chain, is widely known for its fresh cuts of prime beef served directly to customers. The chain has more than 13 locations across the United States and sources beef exclusively from the Midwest, either Angus USDA Choice or USDA Prim.
7. Steak 48
Average Score: 17
One of the most underrated steakhouses on this list, Steak 45 is located in more than 7 cities and has a strong reputation amongst hardcore steak enthusiasts. Each Steak 48 restaurant has an in-house butcher shop, with trained staff who custom-cut 28-day wet-aged steaks, from bone-in Kansas City strips to grass-fed New York strips.
6. Ruth's Chris Steakhouse
Average Score: 19
One of the highest quality steakhouse chains in the US, Ruth's Chris Steakhouse has more than 100 locations across the country. They have an extensive menu and an extremely professional service, geared at complimenting their tantalizing steaks and quality wine lists. The chain is best known for its specialty Tomahawk for Two.
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Disclosure: None. 15 Highest Quality Steakhouse Chains in the US is originally published on Insider Monkey.
