Logan's Roadhouse
Roadhouse-style casual dining steakhouse.
PE-OWNED
Acquired by KKR2006-09-01
What Made It Great
Mesquite-grilled steaks in a rustic roadhouse atmosphere.
What PE Will Likely Do
Portion sizes of steaks and other menu items will likely be reduced while prices remain the same or increase
Cheaper, lower quality ingredients will be substituted for the original mesquite-grilled steaks and other signature menu items
The variety of menu options will be reduced as Logan's focuses on higher-margin dishes
Staffing levels in the kitchen and service staff will be cut, leading to slower service and potentially less attentive customer service
Franchise fees and requirements for franchisees will likely increase, putting financial strain on franchised locations
Expected Timeline
“0 to 6 months months”
Minor changes to menu pricing and portions begin, with some ingredient substitutions
“6 to 12 months months”
Noticeable reduction in steak portion sizes and quality, with some menu items removed
“12 to 24 months months”
Regular customers start noticing significant decline in food quality and portion sizes, as well as slower service
“24 to 36 months months”
Franchised locations begin to close as the brand's reputation is damaged, with company-owned locations also seeing accelerated closures
“36+ months months”
Potential bankruptcy or sale of Logan's Roadhouse to another operator
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Consumers should be prepared for a gradual decline in the quality and portion sizes of the mesquite-grilled steaks and other signature dishes at Logan's Roadhouse
Customers should consider dining at Logan's Roadhouse in the near-term, as the long-term outlook for the brand's quality and customer experience is poor
Consumers may want to seek out alternative steakhouse options that prioritize quality and customer experience over cost-cutting measures
Alternatives
Publicly traded restaurant group
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