Lone Star Steakhouse & Saloon

Lone Star Steakhouse & Saloon

Company type	Public (until 2006), then Private
Industry	Casual dining restaurant
Founded	1 January 1989 (1989-01-01) in Winston-Salem, North Carolina, United States
Founder	Jamie B. Coulter
Defunct	6 October 2019 (2019-10-06)
Fate	Filed for Chapter 7 bankruptcy; most locations closed; one franchised location remains in Guam
Headquarters	Plano, Texas , United States
Area served	United States (formerly nationwide), Guam (independent franchise)
Key people	Jamie B. Coulter (Founder, former President, CEO, Chairman)
Products	Steak, seafood, salad, Texas cuisine-inspired menu
Parent	Lone Star Funds (from 2006 to 2015), Day Star Restaurant Group (2015–2017)

Lone Star Steakhouse & Saloon was a casual dining restaurant chain in the United States, known primarily for its offerings of steak, seafood, and salad. Established in 1989 in Winston-Salem, North Carolina, the company went public in March 1992 when it operated eight locations. At its height, the chain expanded to 267 restaurants nationwide. However, it filed for Chapter 7 bankruptcy on September 7, 2017.

By August 2019, every remaining company-owned venue had ceased operations. The penultimate U.S. outlet, situated in Knightdale, North Carolina, closed on October 6, 2019, and subsequently reopened as a Saltgrass Steak House. As of 2021, only one independently franchised restaurant continues to serve customers in Tamuning, Guam.

Headquartered in Plano, Texas, the brand centered its business on a casual dining experience with a menu inspired by Texas cuisine. Although it commanded a considerable share of the market during its expansion phase, financial difficulties eventually contributed to its downturn. The brand’s history reflects an initial phase of strategic growth through an IPO and rapid scaling, followed by contraction due to competitive pressures within the casual dining sector.

History

Jamie B. Coulter founded Lone Star after initially building his career as a prominent Pizza Hut franchisee. In 1989, Creative Culinary Concepts launched the first prototype Lone Star Steakhouse & Saloon in Winston-Salem, North Carolina. By 1991, Coulter joined forces with Creative Culinary Concepts to open four Lone Star locations featuring an atmosphere reminiscent of Texas Roadhouse. He formally incorporated Lone Star Steakhouse & Saloon in January 1992 and assumed the roles of President, CEO, and Chairman.

With eight restaurants operational, Lone Star went public in March 1992, generating $91 million to support further expansion. Between 1993 and 1995, the chain received recognition from Forbes and Fortune for its rapid growth trajectory. In 1996, Restaurants and Institutions honored Coulter as chief executive of the year. By the close of 1995, Lone Star managed 182 restaurants, increasing to 265 by late 1997. Nonetheless, by the late 1990s, factors such as market saturation, escalating expenses, declining same-store sales, and leadership changes stalled growth. The stock price plummeted from $46 in 1996 to $6 by 1998. A shareholder-driven initiative removed Coulter from his chairman position while he retained his CEO role. By 2002, Lone Star was actively seeking a buyer to take the company private.

Private buyout

On August 18, 2006, Dallas-based private equity firm Lone Star Funds agreed to purchase the chain of 222 restaurants at $27.10 per share in cash. Despite resistance from some significant shareholders, the offer was increased to $27.35 per share and accepted by December 2006. Following privatization, the company was delisted from NASDAQ.

After the buyout, Lone Star transitioned away from its traditional "Texas Roadhouse" theme toward a more urban and upscale dining environment under new owners Jean Stupec and Kimberly Anderson. This repositioning strategy prompted considerations for closing certain locations to curb financial losses.

In response to economic challenges during the Great Recession, Lone Star drastically reduced its number of restaurants—shutting down 27 outlets in early 2014 to leave 152 locations and closing an additional 19 in September 2015, reducing the count to 112 venues. Day Star Restaurant Group acquired both Lone Star Steakhouse and Texas Land & Cattle chains in December 2015; at that time there were 78 Lone Star restaurants remaining. Co-founder Scott Smith exited Day Star in March 2016 due to strategic disagreements with Stupec and Anderson. Subsequent closures accelerated; by January 2017 only sixteen Lone Star locations remained open—including the original Winston-Salem site which shuttered during summer 2016.

Lone Star filed for Chapter 11 bankruptcy protection on February 13, 2017. The company declared on July 31, 2017 that all remaining restaurants had been sold; gift cards were no longer redeemable. The bankruptcy proceedings converted to Chapter 7 liquidation on September 7, 2017.

As of August 2019, four locations were still listed on the company website—all since closed—including sites in Mount Vernon (Illinois), Mount Pleasant (Michigan), Asheville (North Carolina), and Middletown (Ohio). The final mainland U.S. restaurant closed in Knightdale, North Carolina on October 6, 2019.

An independently operated Lone Star Steakhouse continues to function in Tamuning, Guam. Amid the COVID-19 pandemic, it provided take-out, delivery services, and dine-in options by mid-2020 and expanded offerings with curbside pickup as well as indoor/outdoor seating by early 2021.

Sullivan's

Established in 1995 by Jamie Coulter, the founder of Lone Star, Sullivan's Steakhouse was created to capture the more affordable segment of the upscale steakhouse market, with typical checks near $35. The brand, named after the famed boxer John L. Sullivan, showcased a 1940s-themed ambiance designed mainly to appeal to a male audience. Its inaugural venue debuted in Austin, Texas, in May 1996.

By 2011, Sullivan's had grown to encompass 20 restaurants. The following year, it separated from Lone Star when the Del Frisco's Restaurant Group—which included 32 establishments such as Del Frisco's Double Eagle Steak House, Del Frisco's Grille, and Sullivan's—became publicly traded. The original Austin site ceased operations in January 2018.

In an effort to reduce debt, Del Frisco's divested its 14-unit Sullivan's division to Romano's Macaroni Grill in September 2018. As of February 2023, Sullivan's maintains 15 active locations.

Del Frisco's

Founded in 1981 and acquired by Lone Star prior to Sullivan’s launch, Del Frisco’s stood as the most premium brand within Lone Star’s portfolio. In 2012, the Del Frisco’s Restaurant Group—which includes Del Frisco’s Double Eagle Steak House, Del Frisco’s Grille, and Sullivan’s—was spun off as a public company.

By February 2021, Del Frisco’s operated 16 Double Eagle Steak House venues alongside 24 Del Frisco’s Grille restaurants.

Texas Land and Cattle

As of 2002, Texas Land and Cattle steakhouses (TXLC) were managed under The Steak Company, which also owned the Lone Star, Sullivan’s, and Del Frisco’s brands.

In December 2013, Day Star Restaurant Group acquired Texas Land & Cattle along with Lone Star Steakhouse from Lone Star Funds. At that point, TXLC had 27 locations primarily situated in Texas. This number dropped to 25 by December 2015 and further declined to 15 by January 2017. In February 2017, TXLC filed for Chapter 11 bankruptcy alongside Lone Star. Later that year on July 31, the company announced the sale of its remaining restaurants to new ownership and ceased gift card acceptance. The bankruptcy process transitioned to Chapter 7 in September 2017 and remains unresolved. By February 2021, only a single TXLC restaurant remained operational.

Lone Star Steakhouse & Saloon Australia

Lone Star Steakhouse & Saloon made its Australian debut in January 1993 at Parramatta after acquiring naming rights from an existing Melbourne franchise. Over seven years, the brand expanded to 21 outlets but shuttered 10 locations following a business review conducted in 2000.

On December 22, 2003, the American parent company sold the remaining eleven Australian restaurants—spread across New South Wales, Victoria, and Queensland—to Robert LaPointe and Tim Smith. In April 2010, Outback Jacks Bar & Grill purchased five New South Wales sites with intentions to rebrand them.

All Queensland Lone Star stores closed on July 1, 2011. By September 2017, a rebranded Lone Star Rib House opened at North Lakes Shopping Centre in Brisbane, joining other locations in Mackay, Springfield, and on the Gold Coast.

Outback Steakhouse expanded its presence by renovating the former Lone Star location in Penrith toward the end of 2011. The original Parramatta restaurant closed its doors in October of that year.