Peoria: Alexander's Steakhouse President Says Rising Costs Killed Normal Location. Peoria Store Stays Open.
Ron Helms, president of Mercedes Restaurants Inc., says rising costs forced the closure of Alexander's Steakhouse in Normal. The Peoria location remains open and busy, making it the last Alexander's in Central Illinois.
The last Alexander's Steakhouse in Central Illinois is in Peoria
Mercedes Restaurants Inc. once operated six locations across central Illinois. Now Peoria is the only one left.
Ron Helms, president of Mercedes Restaurants Inc., told the Journal Star that rising costs forced the company to close its Normal location at the end of May. The decision ends more than 40 years of operation in Normal.
Helms said utilities doubled in recent years. Payroll costs roughly doubled over the past five years. Beef prices climbed 60% to 70% in the past year alone.
"All of these factors combined just wasn't going to make us a profitable restaurant, and I can't sign on for a five-year or 10-year term where we're going to be losing money," Helms said. "So, the hard decision of calling it quits was made, and we notified our staff and finished out end of May."
The Normal location at 1503 E. College Ave. was also facing a lease renewal with rent set to rise, Helms said.
Peoria location survives on volume
The Peoria storefront at 100 Alexander Ave. opened in 1983. Helms said the restaurant is doing "fine" and is as busy as ever.
The company has a long-term lease in Peoria with several extensions already set up. Helms said the restaurant maintains "a very good relationship with our landlord."
Costs have risen in Peoria as well. The restaurant has increased prices to keep up. But Helms said the higher volume of customers helps absorb the pressure.
"Every year, we have to pay our staff more and more," he said. "We have to pay all of our vendors more and more, and we get less and less as business owners."
Helms said the Peoria location draws enough traffic to handle the increases better than Normal did. Patrons from Normal have been visiting the Peoria store since the closure, he added.
A shrinking chain
Alexander's Steakhouse has been closing locations across central Illinois for years:
- 2022: Champaign location closed
- 2022: Both Famous Dave's BBQ locations (another Mercedes Restaurants concept) closed
- 2024: Springfield location closed
- May 2026: Normal location closed
Helms said the company looks forward to "taking care of all of central Illinois here at the Peoria store."
Alexander's Steakhouse Peoria Address: 100 Alexander Ave., Peoria Phone: (309) 688-0404 Website: https://alexanderssteak.com/