Upscale Steak Houses

Upscale Steak-House Restaurants (We found the Beef)

Where's the beef? There is no lack of quantity or quality of product at upscale steak-house restaurants. Who would have ever thought that people would stand in line to pay an average of $65 for a steak? Not so long ago, beef was taboo for the young, upcoming, physically fit executive. Today, however, traffic and spending are on the increase at fine-dining steak houses. Currently, more than twelve companies have been successful in the "big beef, big check" concept. Many of these companies are looking to expand their product by co-branding with upscale hotels.

The return to steak started with visionary independent restaurant owners such as Arnie Morton, of Morton's Steakhouse, Ruth's purchase of Chris' Steakhouse, and progressed to T.G.I. Friday's former owner, Alan Stillman, introducing Smith & Wolensky steak house, and Don Shula's decision to franchise his line of steak houses.

This segment of the restaurant industry is thriving by providing extremely high quality products for a generous price tag. For now, today's diner ha

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Now, MRG plans to open 80 new restaurants domestically and as many internationally in the future. Recently purchased by Madison Dearborn Partners, a private equity company, Ruth's Chris will now have the resources to open four or five new company-owned steak houses a year for about 12 years.

Steak house chains such as Morton's, Ruth's Chris, Smith & Wolensky, the Palm, Capital Grille, Del Frisco's, Sullivan's Carvers and Don Shula's are quickly growing in major markets. is also going the franchising way, but strictly to hotels. They operate five other company- owned restaurants in city markets averaging about $7 million in sales per unit.

With all of the emphasis on healthy eating and physical fitness one might conclude that 32 ounce Porterhouse steaks had gone the way of liver and other entrails. population is the highest it has ever been, 35. RARE Hospitality International, the parent company to Capital Grill, anticipates new growth at a rate of one to three units a year.

Different steak house companies have different growth strategies. Just beginning to break into the hotel market a year ago at the Sheraton Inner Harbor in Baltimore, Morton's steak houses foresees more hotel openings in the near future.

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