LongHorn Steakhouse

words by > Tony Ware

In 1981—with only nine entrees, one potato, one salad and one dessert listed on a chalkboard—George W. McKerrow, Jr. opened the first LongHorn Steakhouse in Atlanta with the aim of serving the area’s best sizzling steaks and cold beer. McKerrow was no stranger to the restaurant industry, having taken bartending jobs before beginning his entrepreneurial endeavors. But that initial Texas hofb rauhaus/ saloon-inspired enterprise—with capital around $100,000, compared to a restaurant’s average $195,000-$245,000 pre-opening expenses today—struggled mightily in its first year. It is unlikely that McKerrow, now a partner with Ted Turner in Ted’s Montana Grill chain, could have foreseen that year what a, well, stake LongHorn would eventually establish in the specialty steakhouse segment.

First spurred by fate and then by a fierce commitment to customer satisfaction, LongHorn Steakhouse—now under the RARE Hospitality International, Inc. umbrella, along with Capital Grille and Bugaboo Creek Steak House restaurants—has expanded to over 260 locations throughout 31 states and Puerto Rico in its 25 years.

“The first restaurant [in Buckhead, on Peachtree Street] opened in August of 1981, and it struggled, barely survived,” admits LongHorn Steakhouse President Dave George. “And in that following January, there was a major snowstorm in Atlanta that brought the city to a halt, so we pulled a sign out front that said ‘Drinks $1 While It Snows.’ So all these people forced to pull over walked in ’til they filled the place up. And over the storm’s three days, the steaks plus the genuinely friendly atmosphere surprised people, generating loyalty.”

that event—taking place January 12, 1982—became known as the “Snow Jam” and has a tribute staged every five years (mostly recently in September of 2006). the customer base has snowballed since that occasion. LongHorn’s initial appeal was large portions from a tightly focused menu—a home on the range (be it a grass or gas) for convivial cuisine within a rustic roadhouse environment. With easily set décor and limited kitchen requirements, the introductory LongHorn locations kept costs low. LongHorn’s evolving success is an example of how paced development and broadening appeal with respect for core values can be combined.

“Even with a simple menu in the ’80s, people had a confidence level in the products,” says George. “Over time, we’ve tried to maintain that commitment to quality and consistency while evolving the product and environment to stay with the times.”

LongHorn first expanded within Georgia, where LongHorn maintains its highest volume markets (there are now 39 restaurants in metro Atlanta and 47 throughout Georgia, employing more than 3,450 Georgians). By the early ’90s, LongHorn had grown to over 30 restaurants in the Southeast and soon went public to further fund expansion.

But along with increased construction and beef prices, a competitive set—including similarly-themed chains like LoneStar Steakhouse, Logan’s Roadhouse, Texas Roadhouse, etc. — was rising up in the late ’90s. As the category became crowded, LongHorn chose to transition out of that “cowboy cuisine” feel into a true Western American steakhouse, toning down the rural and racy honky-tonk accoutrements for a more airy ranch residence. Additionally, LongHorn stepped away from its preliminary marketing campaigns—which featured the kinetic, quirky Big Haired Lady (Atlanta resident Sarah Cotton)—and spotlighted more family-friendly and contemporary fare.

In the past quarter century, LongHorn has served over 147,000,000 steaks from a menu that has broadened to over 50 entrees plus numerous appetizers and desserts, from signature Flo’s Filet to LongHorn Salmon.

“I think flavor profiles have changed; the food is a lot more flavor-forward,” says George. “People over time have gotten used to experimenting, trying new buzz ingredients—from portobello mushrooms to flavored butters or certain herbs and diff erent rubs. We remain relevant to our guests even as their tastes change by off ering the twists, say, of a filet stuff ed with crab meat or with melted bleu cheese, maybe sun-dried tomatoes. But they will also always be able to find our highest-quality core items, as well as that level of comfort to which they have grown accustomed.”

These identity adjustments have greatly extended LongHorn’s long reach. the steakhouses employ over 16,000 people while maintaining a people-focused organization, the kind of establishments that impart a homey warmth and sense of gratification. “People leave, shake your hand, and ask ‘when is the next party?’” says George. And LongHorn’s prospects continue to look u. LongHorn saw an almost 3% sales increase in 2005 and an overall increase in revenues of over 15% for RARE. But LongHorn’s national presence is being carefully controlled.

“Anyone can build a bunch of restaurants quickly if you have money,” says George. “But if you don’t have the human capital versus the financial capital, you won’t survive. We can only grow as fast as the managers and leaders of the organization, and they must grow in their skill sets and be able to coach those below them. We’re growing contiguously, meaning only growing out from Atlanta—north, south, east and west—but we’re only to Kansas City, Missouri, and up the Eastern seaboard.”

Calling for employees to be more emotional and attentive, while remaining polished, raised the bar on service. LongHorn maintains a “corporate support center”—more of a campus than an office complex, according to George—where training takes place to establish a service-culture-inspired “circle of loyalty” extending from the corporation to manager to employees to guests and back to the company. Employee incentive trips and a Mystery Shopper program—involving 15,000 visits a year—help maintain the LongHorn staff ’s dedication to prioritizing all aspects of guest enjoyment.

The staff also raises community awareness by the best means: word-of-mouth. “We encourage each of our restaurants to have a local charity they sponsor in their respective cities and towns,” continues George, citing a local example. “At the ripe old age of four, LongHorn began a 21-year partnership with Children’s Healthcare in Atlanta, where we have raised more than $2 million dollars to help aid children coping with a variety of illnesses. LongHorn’s leaders have all believed that you need to positively contribute to the community.”

Indeed, communities all over have embraced LongHorn, but none more than Atlanta, where a new flagship restaurant opened in summer 2006 near Buckhead, less than two miles from the chain’s original location. that initial 100-seat location had outlasted its lease and outgrown its capacity, as LongHorn’s formula of promoting casual comforts has generated exponential repeat business across its locations.

“What’s happened is, the best little steakhouse in Georgia has grown up to be one of America’s favorites,” says George. “Over time you have to change; clothing styles, tastes in cars change. But loyalty to brands can stay even as the brands evolve. It might stop being successful if it doesn’t change. And I think that’s the key to LongHorn’s success—remaining relevant and true to the roots.

“the common thread among all LongHorn leaders, from our founder George McKerrow, Jr. to current CEO Phil Hickey, has been a passion for our guests,” concludes George. “they realized that delivering a great dining experience is a lot more than just great tasting food.”