The 'cheap' American restaurants that are thriving amid mass nationwide closures

Americans love cheap meat.

But they have increasingly struggled to find it as restaurant chains, especially fast food ones, pushed through big price rises.

Texas Roadhouse and LongHorn Steakhouse have both bucked the trend on menu costs - both offer a steak, potatoes and vegetables for $20 to $25.

And they are seeing business boom as a result.

Texas Roadhouse -  with 655 restaurants in the US - saw sales over the first three months of 2024 jump 8.4 percent on last year. At Longhorn, they are up 4 percent.

Normally, Americans take to social media to complain about price rises - but not with these two chains, which are rivals but seem to be pushing each other to offer better value.

On Reddit, a 'Texas Roadhouse never disappoints' thread has 5,000 upvotes.

Another, shows a photo of a steak dinner with the caption incredible value for $22 at Texas Roadhouse - users lined up to agree.

'She's a beaut,' one said of the steak in the photo.

Longhorn - with just under 600 locations - is owned by Darden. It outperformed the other chains in Darden's portfolio, including Olive Garden, which said this week it is putting up prices .

McDonald's has started pushing its value credentials - and has launched a $5 meal deal - after admitting in March that customers were staying away due to price rises.

They both have a history of performing well during economic uncertainty.

Steakhouse sales rising in tough times might seem counterintuitive. But the rival chains have accomplished what every restaurant aspires to - making customers feel like they are getting value for money.

Compared to local establishments or higher-end chains like STK Steakhouse, the two chains are 'very affordable', Jim Salera, a research analyst at Stephens, told CNN .

The average per-person check at Longhorn is $26 and for Texas it is $22.

Steak is considered a luxury still, so getting a decent-sized cut along with potatoes and vegetables for that price is good value, experts say.

'For their core consumer, it really represents an affordable luxury,' Salera said.

As a recent Bank of America note discussing LongHorn's results put it: 'Consumers recognize the center-of-plate value offered by steak.'

Most restaurants have imposed big price rises. McDonald's, for example, has raised prices by an average of 40 percent since 2019, it recently said.

Things are different at LongHorn and Texas, BTIG restaurant analyst Peter Saleh told CNN.

He said they've been trying to raise prices below inflation 'for a while now.'