Landry’s Cuts McCormick & Schmick’s Footprint as Beef Costs Bite

Landry’s Inc. has closed approximately 80 locations of its McCormick & Schmick’s chain since the brand reached its zenith in 2009, reducing the network to just 14 restaurants across 11 states. The latest closure, announced on May 26 at the downtown Pittsburgh site, underscores the severe pressure facing high-end dining operators as input costs escalate and consumer appetite for premium beef wanes.

The economic headwinds are quantifiable. According to data from the Federal Reserve Bank of St. Louis, steak prices jumped 16 per cent to $12.73 per pound in March 2026. This sharp increase in wholesale beef costs has forced restaurants to raise menu prices, a move that has subsequently suppressed consumer demand and eroded sales volumes at steakhouses.

Shah Ghani, Landry’s chief operating officer, described the decision to shutter the Pittsburgh location as difficult, noting the site had operated for 18 years. The company confirmed that employees would be transitioned to nearby sister establishments, including Del Frisco’s, Morton’s, and Mitchell’s Fish Market, which are also part of the Landry’s portfolio.

Landry’s acquired the McCormick & Schmick’s brand in November 2011 for $131.6 million. Founded in 1974 by Bill McCormick and Douglas Schmick, the chain previously operated 94 locations at its peak. The specific Pittsburgh venue, which opened in 2008, follows the closure of the chain’s SouthSide Works location in 2021.

The distress at Landry’s mirrors broader industry trends. Stoney River Steakhouse and Grill, owned by SPB Hospitality, announced on April 20 that it would close its Towson, Maryland, location by June 26, 2026, laying off 68 employees. Similarly, 801 Chophouse parent company 801 Restaurant Group LLC filed for bankruptcy protection on April 10 and subsequently closed its Minneapolis affiliate, 801 Nicollet.