Steakhouse interior with neon lights and full bar – Lone Star Steakhouse Guam/Facebook
American history has seen the decline of once-thriving steakhouses, from the York Steak House to the Ponderosa to the Mr. Steak restaurant chain. In late 2025, we ranked popular steakhouse chains. If we were making such a list 20 years ago, it would be unthinkable to exclude then-industry behemoth Lone Star Steakhouse and Saloon. At its peak, Lone Star had 267 restaurants in most US states. Like familiar names like the LongHorn today, the Lone Star was a mid-level steakhouse that was better than casual dining, but less expensive and formal than the fancy steakhouses.
Time has not been kind to Lone Star, which, by 2019, had closed the last four North American locations that were still hanging on. Come to find out, there is only one Lone Star location left in the world, and it’s not in the continental United States, it’s in Guam. Its website retracts the error, but an active Facebook page shows the location is currently open for business. Social media shows the fact that Guam Lone Star still operates like a familiar chain steakhouse: there’s happy hour, bloomin’ onion analog, juicy steaks, and thick burgers. Holiday celebrations include special dinners, such as a turkey plate with all the fixings. The restaurant recently celebrated 30 years in business, and gives every impression of going strong. The same can’t be said for the one-time chain, which is as dead as a doornail due to a string of poor ownership decisions.
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What happened to Lone Star Steakhouse?
Lone Star Steakhouse’s Idle Location – Image Party/Shutterstock
The Outback Steakhouse may have its origins in Florida, but Lone Star Steakhouse dates back a little further to the East Coast. The first Lone Star location opened in 1989 in Winston-Salem, North Carolina. It was the brainchild of Jamie B. Coulter, who was a big deal in Pizza Hut franchises at the time. He based his restaurant concept on Texas Roadhouse: cozy, comfortable, and fun. The chain flew like lightning, and quickly expanded. maybe too Soon, actually.
Despite the economic crisis later known as The Great Recession, Lone Star’s management continued to open new restaurants. This strategy worked perfectly until it happened… and the shutdown began. Greater competition and declining sales caught up to the chain, and it was sold twice to private equity firms that essentially ran the gamut with questionable decisions (such as selling real estate and buying it back) that momentarily pleased shareholders, but ultimately doomed the business.
In late 2016 and early 2017, 14 Lone Star locations in 9 states closed overnight, with no explanation. As of 2017, the number of restaurants was down to 30, former members of upper management denied any knowledge of what was going on, and the media was struggling to make sense of the chaotic, contradictory stories. Struggling locations took about two years to close their doors, usually without notice. It’s heartwarming to see Lone Star successfully surviving in one location on Guam, but sad to think of the prosperous chain brought about by greed and reckless management.
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Read the original article on Foodie.
