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Should I open or buy a LongHorn Steakhouse franchise in 2027?

FranchisesShould I open or buy a LongHorn Steakhouse franchise in 2027?
📖 2,316 words🗓️ Published Jul 20, 2026
Direct Answer

Probably not — unless you have $5M+ liquid net worth, multi-unit casual-dining operating experience, and you are pursuing an international market or a US airport concession. LongHorn Steakhouse is not franchised in the domestic US (street-side) — all 608 company-owned restaurants are Darden-operated. The only paths in for 2027 are (a) Darden International franchising (Puerto Rico, Guam, Ecuador, San Antonio Mexico already taken) or (b) US airport licensing (Atlanta ATL, Detroit DTW already operated by HMSHost). Realistic all-in build-out: $2.0M–$3.5M per unit, 5–10% royalty, 5–8 year payback in airport concessions, 6–9 year payback internationally. Buying a resale is impossible — Darden does not sell its company stores. If you wanted a Darden-style steakhouse cash-flow profile and real franchisee ownership, Texas Roadhouse is also closed to new franchisees, so your real comparables are Outback (Bloomin'), Ruth's Chris (Darden — same problem), or independent steakhouse builds.

The Real Numbers

LongHorn Steakhouse is a 608-unit casual-dining steakhouse chain owned by Darden Restaurants Inc. (NYSE: DRI), the largest full-service operator in the US. Domestic franchising is closed. The only Darden FDD-style disclosure is via the Darden International Franchising program and US Airport Franchising program, which use license agreements rather than the standard FTC-registered FDD that an Outback or Texas Roadhouse franchisee would receive. The investment range Darden discloses on franchisedarden.com is $2.0M to $3.5M per unit, and corporate AUV implied from Q3 FY2026 ($854.2M systemwide / 608 units / 13 weeks) is roughly $5.4M annualized per restaurant — among the highest AUVs in casual dining.

Cost / Performance LineLongHorn Airport / InternationalCasual-Dining Industry Reference
Initial license / franchise fee$50K–$100K (negotiated, Darden licensing)$40K–$50K (Outback, Texas Roadhouse benchmark)
Build-out + equipment$1.4M–$2.6M (full-service kitchen, ~5,500–6,500 sq ft)$1.2M–$2.4M casual steakhouse
Working capital (6 mo)$300K–$500K$250K–$400K
Total initial investment$2.0M–$3.5M$1.7M–$3.2M
Royalty %5–6% of gross sales (Darden licensing standard)4% (Outback), 4% (Texas Roadhouse)
Marketing / brand fund2–3% of gross sales1.5–4%
AUV — corporate stores (implied Q3 FY2026)~$5.4M / unit$4.3M Outback, $7.2M Texas Roadhouse
Airport-unit AUV$6M–$10M (captive traffic, premium pricing)$5M–$9M typical airport casual dining
EBITDA margin (operator)15–19% company-store contribution; 10–14% as licensee after royalty + fees12–16% Outback, 17–18% Texas Roadhouse
Year-1 operator cash flow (low end)$200K–$450K$250K–$500K
Payback5–8 yrs airport, 6–9 yrs international4–7 yrs Outback / TXRH equivalents
Darden Q3 FY2026 SSS growth+7.2% (traffic +3.3, check +3.9)+1.5% Knapp-Track casual-dining benchmark

Sources for the table: Darden Q3 FY2026 8-K (SEC EDGAR exhibit 99.1), franchisedarden.com, FSR Magazine, Restaurant Business Online. Domestic operators looking at a "LongHorn FDD" should understand no public FDD exists — Darden has not registered a Franchise Disclosure Document with state franchise regulators for domestic LongHorn units because they do not sell domestic franchises.

Who Wins With This Business

Should I open or buy a LongHorn Steakhouse franchise in 2027? — Who Wins With This Business

You win as a LongHorn operator if you are:

Who Loses With This Business

Should I open or buy a LongHorn Steakhouse franchise in 2027? — Who Loses With This Business

You lose if you are:

2027 Market Conditions

Casual-dining steakhouse is the hottest casual-dining segment in 2027 — and the worst segment for new entrants. Texas Roadhouse, LongHorn, and Outback captured ~$11B in combined US sales in FY2026, with steakhouse traffic up 4.2% while overall casual-dining traffic was down 1.8% (Black Box Intelligence, March 2026). Three forces are shaping 2027:

1. Beef inflation pressure. CME live-cattle futures are trading at $204/cwt as of May 2026, +19% year-over-year, and the USDA forecasts cow-herd liquidation will keep beef tight through 2028. Darden is forward-contracting beef 12 months out and absorbing margin compression rather than passing it to consumers — a luxury an independent licensee will not have.

2. Value-positioning war. LongHorn ran the "7 entrees under $15" promotion through Q3 FY2026 and drove the +3.3% traffic gain. Outback responded with its "Aussie 4-Course" at $14.99, and Chili's "3 for Me" at $10.99 is bleeding traffic out of the entire casual-dining bench. Operators without national-scale ad spend (which excludes most international licensees) cannot compete on this axis.

3. Airport concession consolidation. HMSHost (Autogrill), SSP America, Paradies Lagardère, and Areas USA control >85% of US airport F&B revenue. The only realistic path to a US LongHorn airport unit in 2027 is subcontracting under one of these masters when they win a new concourse RFP — typical lead time 3–5 years from RFP to ribbon-cutting.

The 90-Day Decision Tree

  1. Days 1–7 — Verify you are even eligible. Confirm $5M+ net worth and $2M+ liquid on a current personal financial statement. If you cannot, stop now and pivot to Outback Steakhouse (still franchising domestically with ~$2.5M investment, Bloomin' Brands FDD on file in 14 states) or a regional independent steakhouse build.
  2. Days 8–14 — Pick your lane. Decide international (you need an entire-country territory plan) vs US airport (you need a relationship with HMSHost, SSP, Paradies, or Areas USA already). These are completely different applications.
  3. Days 15–30 — Build the application package. Compile: personal financial statement (signed by CPA), operating resume (multi-unit FSR experience), proposed market analysis (population, demographics, competitor map), real-estate sourcing plan, local supply-chain plan for USDA beef import, proposed development schedule (3, 5, 10 units over 7 years is the typical Darden ask).
  4. Days 31–45 — Submit via franchisedarden.com Business Contact Form. Darden's franchise development team responds in 2–4 weeks to qualified applicants only. Do not expect a response if your packet does not show multi-unit casual-dining operator history.
  5. Days 46–60 — First Darden meeting. Conducted via video with Darden International Franchising team in Orlando, FL. They will dig into your operating history, balance sheet, and territory thesis. Bring named real-estate sites if possible.
  6. Days 61–75 — Due diligence sprint. If invited to next round, expect on-site visits to your existing operations, reference checks with your beef supplier, landlord, and lenders, and a development-agreement term sheet outlining license fee, royalty, marketing fee, territory, and development schedule.
  7. Days 76–90 — Go / no-go decision. Either sign a development agreement (typical: 3-unit minimum, $50K–$100K license fee per unit, 5–6% royalty, 2–3% marketing, 20-year term with 10-year renewal) or walk. Do not sign if Darden insists on a 5+ unit minimum and you cannot capitalize all 5 from current liquidity — beef-margin compression in 2027 will burn under-capitalized operators.

Alternative Plays

FAQ

Can I buy an existing LongHorn Steakhouse franchise in the US? No. All 608 LongHorn Steakhouse locations in the continental US are company-owned and operated by Darden Restaurants. Darden has never sold a company store to a franchisee, and there is no indication that policy will change by 2027.

What is the total investment to open a LongHorn Steakhouse franchise internationally? Realistic all-in build-out costs range from $2.0 million to $3.5 million per unit, depending on location, construction, and equipment. This does not include ongoing royalty fees of 5–10% of gross sales, which are typical for Darden’s international licensing agreements.

How long does it take to break even on a LongHorn Steakhouse franchise? Payback periods vary by market. In US airport concessions, expect 5–8 years. For international street-side locations, the range is typically 6–9 years. These estimates assume steady traffic and no major economic disruptions.

Are there any US locations where I can operate a LongHorn Steakhouse as a franchise? Yes, but only in airport concessions. Currently, HMSHost operates licensed LongHorn units at Atlanta ATL and Detroit DTW. Darden may consider new airport proposals, but these are licensing deals, not traditional franchises, and require proven airport food-service experience.

What are my alternatives if I want a similar steakhouse franchise? Your realistic options are limited. Outback Steakhouse (Bloomin’ Brands) occasionally offers domestic franchise opportunities, though requirements are strict. Ruth’s Chris is owned by Darden and not franchised domestically. Independent steakhouse builds or smaller regional chains are more accessible paths.

Do I need restaurant experience to qualify for a LongHorn franchise? Yes. Darden requires multi-unit casual-dining operating experience for any international or airport licensing deal. Without a proven track record managing multiple full-service restaurants, you will not be considered.

Bottom Line

LongHorn Steakhouse is the best-performing steakhouse brand in casual dining heading into 2027 — and it is essentially unavailable to private US franchisees. If you have $5M+ net worth, multi-unit FSR operator experience, and an international territory thesis or an airport-concession relationship, apply via franchisedarden.com. Expect a 12–24 month approval cycle, $2.0M–$3.5M per unit, 5–6% royalty + 2–3% marketing, and 5–9 year payback. If you have less than $2M liquidity or no multi-unit operator history, Darden will not respond — pivot to Outback Steakhouse, buy a Texas Roadhouse franchisee group, or build an independent steakhouse with beef-sourcing as your moat. Do not pay any "consultant" who promises to get you a domestic LongHorn franchise — it does not exist at any price.

Sources

LongHorn Steakhouse review / reviews / rating / review 2027 / review of LongHorn Steakhouse franchise.

flowchart TD A[Want to own a LongHorn?] --> B{Domestic US street-side?} B -- Yes --> C[Impossible — Darden does not franchise] B -- No --> D{International or US airport?} D -- International --> E[Need $5M net worth + multi-unit FSR operator history] D -- US Airport --> F[Must partner with HMSHost / SSP / Paradies — they hold the master] E --> G[Apply via franchisedarden.com] F --> G G --> H{Darden approves territory?} H -- Yes --> I[License agreement, 5-6% royalty, $2.0-3.5M build] H -- No --> J[Consider Outback or Ruth Chris alt] C --> K[Build independent or buy Outback resale]
flowchart LR A[2027 Marketunder br/over Forces] --> B[Beef inflationunder br/over +8-10% FY27] A --> C[Value warunder br/over $10.99-$14.99 entrees] A --> D[Airport RFPunder br/over 3-5yr lead time] B --> E[Margin pressureunder br/over on licensees] C --> E D --> F[Subcontract viaunder br/over HMSHost / SSP] E --> G[Year-1 EBITDAunder br/over 10-14%] F --> G G --> H[Payback 5-9 yrs]

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