Rising food costs driven by inflation have been a problem for U.S. steakhouses ranging from high-end to budget establishments, leading some well-known restaurants to permanently shut their doors and in some cases file for bankruptcy
An increase in the cost of beef that led to steak prices spiking 16% to $12.73 per pound in March 2026, according to data from the Federal Reserve Bank of St. Louis, affected menu prices and discouraged some diners from dining in steakhouses, taking a bite out of restaurant revenue.
Steakhouses that have closed locations in the U.S. over the last three months have included Fleming’s Prime Steakhouse and Wine Bar, McCormick & Schmick’s, and Stoney River Steakhouse and Grill, with Quaker Steak & Lube about to close one, too.
A Golden Corral restaurant franchisee, Conroe Corral Murphy LLC, however filed for Chapter 11 bankruptcy in Texas on June 8 and continues to operate.
Outback Steakhouse’s owner Bloomin’ Brands closed 21 locations in 2025 and said it would close another 22 locations in 2026 as leases expire, according to its third quarter earnings call.
Quaker Steak & Lube closes location
And now, the last Quaker Steak & Lube location in Florida, located in Clearwater, will permanently close on July 5, the restaurant’s General Manager Hilliary Smith said in a Facebook post.
“After almost 23 years of service, Quaker Steak & Lube is closing its doors after business closes on July 5th,” Smith, who worked at the restaurant since 2009, said.
Neither Smith nor Quaker Steak Lube stated a reason for closing the location, which opened in 2003. Smith said she began working at the restaurant in August 2009.
Opened in a former gas station
The Quaker Steak & Lube chain opened in 1974 in an abandoned gas station in Sharon, Pa., as a muscle car-themed, cook-your-own-steak restaurant chain.
The Bloomsburg, Pa.-based dining chain, nicknamed “The Lube,” designed its restaurant locations with gas station memorabilia, classic cars, and motorcycles, and currently serves steaks, chicken wings, baby back ribs, burgers, sandwiches, soups, and salads.
Quaker Steak has won 100s of national and international awards for its food and its variety of over 20 wing sauces.
Chain has shuttered many locations
The steakhouse operator filed for bankruptcy in November 2015 and sold its 50 restaurant locations out of bankruptcy to TravelCenters of America in March 2016 for $25 million, according to FSR.
The chain will have downsized from 50 locations in 2016 to 26 stores after the Clearwater closing.
TravelCenters had downsized the restaurant chain to 42 locations by April 2021 when it sold the chain to hospitality brand owner and Quaker Steak franchisee JDK Management Company for $5 million.
“We’re growing again!” JDK Management said in a LinkedIn post after the sale. “JDK has acquired the Quaker Steak & Lube brand, building on our award-winning portfolio of hospitality brands.
“A tremendous thank you to all our team members whose hard work and dedication make this possible,” the post said.
After buying the Quaker Steak brand in 2021, JDK became the franchisor of the brand, as well as owner of 21 locations at the time.
“JDK plans to maximize the brand potential with an ownership vision, focused on ensuring stability, honoring QSL heritage, and expanding the band to solidify its future,” Russ Berner, vice president of restaurant operations, said at the time of the sale.
JDK owns Perkins Restaurant franchises
JDK is a franchisee for over 30 Perkins Restaurants throughout the Northeast. It also owns four chain hotels in Pennsylvania: Hampton Inn, Mansfield, Pa.; Microtel Inn, Mansfield, Pa.; Fairfield Inn & Suites, Bloomsburg, Pa.; and Holiday Inn Express, Bloomsburg, Pa.
The Quaker Steak & Lube chain operates 27 locations in eight states in the U.S.
Fleming’s closed a location in Houston on April 18 after operating 25 years, but did not give a reason for closing.
McCormick & Schmick’s closed a Pittsburgh location on May 26 after 18 years in business, and Stoney River Steakhouse and Grill said it will close a Towson, Md., location on June 26. Neither establishment gave a specific reason for closing.
Franchise restaurant analysts cite rising wages as one of the top expenses that are causing higher menu prices that discourage diners.
“High-wage states/markets are amongst the hardest in the restaurant industry,” Michael J. Ingram, vice president and principal at National Franchise Sales told TheStreet’s Kirk O’Neil in an email.
“Franchisees can only raise their menu prices so far to make up for higher expenses, but as they lose customers, it becomes an uphill battle to cover debt they already have in place along with overall higher expenses,” Ingram said.
States where Quaker Steak operates:
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Florida (1 location)
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Iowa (1 location)
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Ohio (13 locations)
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Pennsylvania (6 locations)
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South Carolina (2 locations)
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Tennessee (1 location)
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Virginia (1 location)
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West Virginia (2 locations)
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Source: Quaker Steak & Lube
Related: Sports bar chain that once had 60 locations down to 3
This story was originally published by TheStreet on Jun 22, 2026, where it first appeared in the Restaurants section. Add TheStreet as a Preferred Source by clicking here.