The steakhouse restaurant industry has been hit hard by a significant increase in beef prices, with steak prices soaring to $12.73 per pound in March 2026, according to data from the Federal Reserve Bank of St. Louis. This spike in costs has led to a decrease in consumer demand for steak, as menu prices rise, resulting in reduced sales for steakhouses.
As a result of these challenges, some establishments have been forced to shut down their operations. One such closure was the McCormick & Schmick’s steak and seafood restaurant located in downtown Pittsburgh, which had been in business for 18 years. The closure was announced by the restaurant chain owner, Landry’s Inc., in a notice posted on the restaurant’s front door on May 26.
The notice expressed gratitude to the community for their support and encouraged guests to visit their sister locations. The closure of the downtown Pittsburgh location was part of a larger trend, with Landry’s closing other McCormick & Schmick’s locations as well. The company did not provide a specific reason for the closure but stated that they were transitioning employees to nearby sister restaurants.
Founded by Bill McCormick and Douglas Schmick, McCormick & Schmick’s once operated around 94 restaurants at its peak in 2009. Over the years, the company has closed several locations, with only 14 remaining in operation across 11 states.
In addition to McCormick & Schmick’s, other high-end steakhouse chains have also faced challenges and had to close locations due to rising food costs and declining consumer demand. Stoney River Steakhouse and Grill announced the closure of its Towson, Md., location, resulting in the layoff of 68 employees. Similarly, 801 Chophouse closed an affiliate restaurant in Minneapolis as part of a bankruptcy filing by its parent company.
These closures highlight the struggles faced by the steakhouse industry in the current economic climate. As beef prices continue to rise, it remains to be seen how other restaurants in the sector will adapt to these challenges and ensure their long-term sustainability.
