Olive Garden slump deepens as it slumps to No 3 while steakhouse boom takes hold and bitter rival stages ‘best comeback of all time’
Olive Garden has been knocked off the top table.
The Italian-American favorite has fallen to third place among America’s biggest casual dining brands after being overtaken by rival Chili’s in a dramatic industry shake-up.
It marks yet another year Olive Garden has been pushed down the leaderboard, after previously losing its No 1 spot to Texas Roadhouse.
Now, it’s been leapfrogged again - this time by a resurgent Chili’s that experts say has pulled off 'the best comeback of all time.'
Chili’s sales surged more than 20 percent last year to $5.5 billion, according to new industry data - a staggering jump that saw it pile on nearly $1 billion in extra revenue in just 12 months.
And that growth came without opening any new restaurants - Chili’s actually closed three locations last year. That means existing locations are seeing more customers nationwide.
Technomic reports that each Chili's location increased revenue by about $800,000 more than 2024 - that's almost 50,000 orders of mouth-watering Triple Dippers.
Kevin Hochman, the CEO of Chili's owner Brinker said, the chain's 'consistent investments in food, service and atmosphere, combined with strong plans, give us confidence we can build on this growth.
Olive Garden, a once fan-favorite casual dining chain, has since slipped to the number three spot nationwide
Olive Garden is known for its unlimited soup, salad and breadsticks available at most restaurant locations
Chili's consistently wins over customers with beloved restaurant staples, including the Triple Dipper appetizer sampler. With the viral menu item, customers can pick three different appetizers and three dipping sauces for under $20.
The chain also scored big with their Wicked-themed margaritas, which coincided with the release of Universal Studios' sequel film.
Margaritas are the top-selling cocktail in the US, and Chili's sells more than any other restaurant brand nationwide. Last year alone, it sold nearly 30 million margaritas.
As of early 2026, there are an estimated 1,209 Chili’s locations in the US, across 49 states - more than Olive Garden and Texas Roadhouse.
Meanwhile, Texas Roadhouse continues to be the fan-favorite chain, maintaining its top billing for three years in a row. With hand-cut steaks and made-from-scratch menu items, customers flock to the steakhouse's locations nationwide.
Each of its restaurants now pulls in an eye-watering $8.7 million a year on average - almost double what many competitors generate.
Buffalo Wild Wings has edged into fourth place, pushing Applebee’s further down after the struggling chain closed nearly 30 locations last year.
LongHorn Steakhouse, owned by Olive Garden’s parent company Darden, is also seeing an uptick in sales, opening 16 new locations last year alone despite the rising cost of beef.
Chili's debuted Wicked-themed cocktails in honor of 2025's 'Wicked: For Good'
A long-term shortage in cattle supply has pushed costs higher, and while Darden expects prices to remain volatile, it says LongHorn is still seen as good value by customers.
That is partly because the chain has not raised menu prices as aggressively as grocery stores, making eating out feel more competitive.
Outback Steakhouse, however, reported surprising sales drops, especially compared to other steak-forward casual restaurants.
Olive Garden's parent company recently shuttered Bahama Breeze, its Caribbean-inspired casual dining chain, after 30 years in business.
