The American steakhouse scene is undergoing a significant shake-up, and not every established name is surviving the heat. A stark example is the upscale chain McCormick & Schmick's, which once boasted nearly 100 venues but now operates a mere 13 locations across the United States.
The Rise of a Pacific Northwest Powerhouse
Founded by Bill McCormick and Douglas Schmick, the first McCormick & Schmick's opened in Portland, Oregon, in 1979. The concept was straightforward yet compelling: offer high-quality steaks, exceptionally fresh seafood, and abundant oysters in an atmosphere that was refined but not overly formal. This formula proved an instant hit.
Locals and visitors flocked to the restaurant, cementing its reputation for polished dining without the stuffiness associated with white tablecloths. Throughout the 1980s and 1990s, the brand expanded aggressively, opening sites in prime downtown areas, business districts, and near convention centres nationwide.
It became a favoured destination for business lunches, expense-account dinners, and happy hours centred on its famous oyster offerings. By the late 2000s, the chain was at its peak with close to 100 restaurants and catering locations spanning the US and Canada.
The Acquisition and Steady Decline
The trajectory shifted dramatically in 2011 when the Houston-based restaurant conglomerate Landry's, owner of brands like Morton's The Steakhouse and Bubba Gump Shrimp Co., acquired McCormick & Schmick's. Not long after the takeover, the chain's footprint began to contract.
The first major wave of closures hit in 2017, wiping out roughly a third of its locations. Subsequently, more restaurants vanished quietly as leases expired. Industry analysts point to a combination of shifting consumer dining habits, intensifying competition in the steak and seafood sector, and strategic decisions within Landry's vast portfolio.
By 2024 and 2025, the retreat accelerated. The brand shuttered longstanding venues in major cities, including its final restaurant in Oregon—the state where it all began. Locations in Charlotte, North Carolina, and Chicago's Loop, once prime territory, also closed their doors for good.
A Perfect Storm for Classic Steakhouses
The plight of McCormick & Schmick's reflects broader pressures facing traditional mid-market steakhouse chains. The sector is grappling with a perfect storm of challenges:
- Consumers are dining out less frequently due to economic pressures.
- Operational costs for labour, food, and energy continue to rise sharply.
- Public tastes are evolving, with demand shifting towards more casual, experiential, or health-conscious options.
- Competition is fiercer than ever, from high-end independents to fast-casual concepts.
Instead of investing heavily to revive the McCormick & Schmick's brand, Landry's appears to be moving on, often replacing shuttered sites with newer or more profitable concepts from its stable. This strategy, coupled with the market headwinds, has led to the chain's dramatic fade from a near-ubiquitous name to a shadow of its former self.
The ongoing struggles and closure programmes of other chains, such as Outback Steakhouse, underscore that these pressures are industry-wide. Even well-known brands must adapt rapidly to changing realities or face a similar fate of contraction and decline.
