The steakhouse restaurant sector has faced a major impact from an increase in beef costs, as steak prices spiked 16% to $12.73 per pound in March 2026, according to data from the Federal Reserve Bank of St. Louis, WIBC- Radio reported.
As the price of beef increases for restaurants, consumer demand for the product has declined as menu prices also rise, reducing sales at steakhouses.
Reduced sales have led certain establishments to close their businesses.
McCormick & Schmick’s location closes
Restaurant chain owner Landry’s Inc. closed its high-end McCormick & Schmick’s steak and seafood dining location in downtown Pittsburgh, after it had operated for 18 years, the company announced on May 26 in a notice on the restaurant’s front door, according to KDKA-TV.
“We regret to inform you that this location has closed,” the message read.
“We are grateful for the support of our community and encourage our guests to visit us at our sister locations nearby!” the notice said.
The message listed six Landry’s sister restaurants near the closed restaurant: Del Frisco’s, Ground Concourse, Morton’s, Bill’s Bar & Burger, Houlihan’s, and Mitchell’s Fish Market.
Landry’s did not reveal a reason for closing the downtown Pittsburgh McCormick & Schmick’s location.
“After many years serving the downtown Pittsburgh community, McCormick & Schmick’s on Fifth Avenue has made the difficult decision to close its doors,” Shah Ghani, the company’s chief operating officer, said in a statement to KDKA.
“We are incredibly grateful to our loyal guests and dedicated team members for allowing us to be part of so many celebrations, traditions, and memorable moments over the years, Ghani said.
The company is transitioning employees to nearby sister locations, he said.
Chain had 94 restaurants
Founders Bill McCormick and Douglas Schmick owned about 94 restaurants at the company’s peak in 2009, including mostly McCormick & Schmick’s locations, as well as Jake’s Famous Crawfish, M&S Grill, McCormick & Kuleto’s, William Douglas Steakhouse, and The Boathouse, according to The Oregonian.
The company opened the city’s first McCormick & Schmick’s at SouthSide Works in 2005, followed by the downtown Pittsburgh location in 2008. The company closed the SouthSide location in 2021, according to KDKA.
McCormick & Schmick’s slashes 80 stores
McCormick & Schmick’s has closed about 80 locations since its peak and currently operates 14 locations in 11 states, plus M&S Catering at the Museum of Flight in Seattle.
Landry’s traces McCormick & Schmick’s roots to 1974, according to its website, before Bill McCormick purchased Jake’s Famous Crawfish in 1975 and created the partnership chain with Douglas Schmick in 1979.
McCormick & Schmick’s sold the chain to Landry’s in November 2011 for $131.6 million, The Oregonian reported.
Other high-end steakhouse chains have also been forced to close locations because of rising food costs and declining consumer demand.
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Other steakhouses close locations
High-end dining chain Stoney River Steakhouse and Grill said it will close its Towson, Md., restaurant location by June 26, 2026, and lay off 68 employees, according to a Worker Adjustment and Retraining Notification notice that the company filed with the Maryland Department of Labor on April 20.
“After close evaluation of the market, we have made the difficult decision to close the Towson location,” Chris Conlon, executive vice president of operations at owner SPB Hospitality, said in a statement, according to The Baltimore Banner. “Employees have been offered various opportunities, including the option to transfer to nearby locations.”
Stoney River Steakhouse and Grill operates 14 restaurants in nine states, including Alabama, Georgia, Illinois, Kentucky, Maryland, Michigan, Missouri, North Carolina, and Tennessee.
Another high-end steakhouse chain, 801 Chophouse, whose parent filed for bankruptcy protection on April 10, closed an affiliate restaurant in Minneapolis, 801 Nicollet, which had previously operated under another name, 801 Fish.
Parent 801 Restaurant Group LLC owns eight 801 Chophouse locations in Denver; Des Moines, Iowa; Kansas City and St. Louis, Mo.; Leawood, Kan.; Minneapolis; Omaha, Neb.; and Tysons Corner, Va.
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This story was originally published by TheStreet on May 28, 2026, where it first appeared in the Restaurants section. Add TheStreet as a Preferred Source by clicking here.