Rising food costs caused by inflation have been a problem for US steakhouses from high-end establishments to budget establishments, leading some well-known restaurants to permanently close their doors and in some cases file for bankruptcy.
The increase in beef costs led to a 16% increase in meat prices to $12.73 a pound by March 2026, according to data from the Federal Reserve Bank of St. Louis.
Steakhouses that have closed locations in the US in the past three months include Fleming’s Prime Steakhouse and Wine Bar, McCormick & Schmick’s, and Stoney River Steakhouse and Grill, with Quaker Steak & Lube closing as well.
Golden Corral’s restaurant franchisee, Conroe Corral Murphy LLC, however filed for Chapter 11 bankruptcy in Texas on June 8 and continues to operate.
Outback Steakhouse owner Bloomin’ Brands has closed 21 locations by 2025 and said it will close another 22 locations by 2026 as leases expire, according to its third-quarter earnings call.
Quaker Steak & Lube is closing its last remaining Florida location in Clearwater on July 5.Shutterstock
Quaker Steak & Lube closes
And now, the last Quaker Steak & Lube location in Florida, in Clearwater, will close permanently on July 5, said the restaurant’s General Manager Hilliary Smith in a Facebook post.
“After nearly 23 years of operation, Quaker Steak & Lube is closing its doors for business on July 5,” said Smith, who has operated the restaurant since 2009.
Neither Smith nor Quaker Steak Lube gave a reason for closing the location, which opened in 2003. Smith said he started 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 an automotive-themed, cook-your-own-steak restaurant.
The Bloomsburg, Pa.-based dining chain, called “The Lube,” has designed its restaurants with memorabilia of gas stations, vintage cars, and motorcycles, and currently offers steaks, chicken wings, baby back ribs, burgers, sandwiches, soups, and salads.
Quaker Steak has won over 100 national and international awards for its food and a variety of over 20 wing sauces.
The chain has closed many locations
The steakhouse operator filed for bankruptcy in November 2015 and sold its 50 restaurants to TravelCenters of America in March 2016 for $25 million, according to FSR.
The chain will have dropped from 50 locations in 2016 to 26 stores after the Clearwater closing.
TravelCenters reduced the restaurant chain to 42 locations in April 2021 when it sold the chain to hospitality brand owner and Quaker Steak franchisee JDK Management Company for $5 million.
“We are growing again!” JDK executives said in a LinkedIn post after the sale. “JDK has acquired the Quaker Steak & Lube brand, building on our award-winning portfolio of hospitality products.
“We are very grateful to all our team members for their hard work and dedication that made this possible,” the document said.
After purchasing the Quaker Steak brand in 2021, JDK became the brand’s franchisor, and owner of 21 locations at that time.
“JDK plans to increase the brand’s strength with a proprietary perspective, focusing on ensuring stability, honoring QSL’s values, and expanding the band to strengthen its future,” said Russ Berner, vice president of restaurants, at the time of the sale.
JDK is a shareholder in Perkins Restaurant
JDK is a franchisee of more than 30 Perkins restaurants throughout the Northeast. It also owns four hotel chains 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 US states
Fleming closed the Houston location on April 18 after 25 years of operation, but did not give a reason for the closing.
McCormick & Schmick’s closed its Pittsburgh location on May 26 after 18 years in business, and Stoney River Steakhouse and Grill said it will close its Towson, Md., location on June 26. Neither establishment gave a specific reason for the closure.
Franchise restaurant analysts cite rising wages as one of the top costs that create high menu prices that discourage diners.
“High-income regions/markets are among the toughest in the restaurant industry,” Michael J. Ingram, vice president and principal at National Franchise Sales told TheStreet’s Kirk O’Neil in an email.
“Franchises can raise prices so far to cover the higher costs, but as they lose customers, it becomes an uphill battle to cover their existing debts and higher costs,” Ingram said.
Countries where Quaker Steak operates:
Florida (1 location)
Iowa (1 location)
Ohio (13 locations)
Pennsylvania (6 locations)
South Carolina (2 locations)
Tennessee (1 place)
Virginia (1 location)
West Virginia (2 locations)
Source: Quaker Steak & Lube
Related: Popular vodka and moonshine brand suddenly shuts down
This story was originally published by TheStreet on Jun 22, 2026, where it appeared first in the category Restaurants. Add TheStreet as a favorite source by clicking here.
