There’s a specific kind of potato salad that shows up at steakhouses, the kind that makes you forget every other version you’ve had. This Steakhouse Potato Salad hits that same note, creamy but not heavy, tangy but balanced, with bits of bacon and sharp cheddar folded through every bite. It works as one of the best cold side dishes for summer cookouts, and honestly, it holds its own at the dinner table any time of year.

What sets this apart from a basic mayo salad is the layering. You get a sour cream base, a little mustard, a splash of apple cider vinegar, and enough seasoning to make it taste like it came from somewhere intentional. Nothing complicated, just good technique and solid ingredients.
What You Need to Make This
- 2.5 lbs baby red potatoes, halved
- 4 strips thick-cut bacon, cooked and crumbled
- 1/2 cup sharp cheddar cheese, shredded
- 3 green onions, thinly sliced
- 2 tbsp fresh chives, chopped
- 1/2 cup sour cream
- 1/3 cup mayonnaise
- 1 tbsp apple cider vinegar
- 1 tsp Dijon mustard
- 1/2 tsp garlic powder
- 1/2 tsp smoked paprika
- Salt and black pepper to taste
How to Build the Steakhouse Potato Salad
- Place halved potatoes in a large pot, cover with cold salted water, and bring to a boil. Cook 12 to 15 minutes until fork-tender but not falling apart. Drain and let cool to room temperature.
- While potatoes cool, whisk together sour cream, mayonnaise, apple cider vinegar, Dijon mustard, garlic powder, and smoked paprika in a large bowl. Season generously with salt and pepper.
- Add cooled potatoes to the bowl and fold gently to coat. Don’t overmix – you want intact chunks, not mash.
- Stir in bacon, cheddar, and green onions.
- Cover and refrigerate for at least 1 hour before serving. Top with fresh chives right before serving.
Tips That Actually Make a Difference
Salt the cooking water well, it seasons the potatoes from the inside out. Dress the potatoes while they’re still slightly warm so they absorb flavor before everything chills down. If you want this as one of your go-to quick sides for BBQ, you can cook the potatoes a day ahead and just dress them the morning of.
Don’t skip the vinegar. That small amount of acidity keeps the dressing from tasting flat and is what separates a million dollar potato salad feel from an average one. A pinch of cayenne added to the dressing also works well if you like a faint kick.

Swaps and Substitutions
No sour cream? Greek yogurt works almost identically and adds a little extra tang. For a lighter version, swap half the mayo for more Greek yogurt. Turkey bacon or smoked turkey bits replace regular bacon if you’re working around dietary preferences. Blue cheese crumbles instead of cheddar give it a different steakhouse angle that pairs especially well if this is a starch side for dinner alongside grilled steak or chops.
Variations Worth Trying
For a loaded baked potato twist, add a dollop of extra sour cream on top and a sprinkle of shredded cheddar right before serving. If you’re making this as one of the BBQ side dishes for large groups, doubling the recipe is simple – just use a very large mixing bowl and add dressing gradually so you can control the coating. A handful of pickled jalapeños stirred in adds heat and crunch that works well when this is served as a cold cookout side dish on a hot day.
Storage and Serving
Store leftovers in an airtight container in the refrigerator for up to 4 days. The salad thickens as it sits, so stir in a small spoonful of sour cream or mayo before serving again. Do not freeze this salad – the texture breaks down badly once thawed. Serve cold straight from the fridge. It works well as a side dish for church potluck spreads because it travels well and tastes better after sitting overnight.
FAQ
Can I make this potato salad the night before?
Yes, and it actually tastes better the next day. The flavors settle and deepen overnight. Just add fresh chives right before serving.
What kind of potatoes work best?
Baby red or Yukon Gold potatoes hold their shape well after boiling. Russets tend to get too soft and crumbly for this style of salad.
Is this one of the good side dishes for burgers?
It’s one of the best. The creamy, savory profile complements a beef burger perfectly, and it doesn’t compete with the main dish the way heavier sides can.
How do I keep it from getting watery?
Let the potatoes cool completely before dressing. Warm potatoes release steam that dilutes the dressing and makes the salad runny.
Can I serve this warm instead of cold?
You can dress it and serve immediately at room temperature, but the flavors are noticeably better after chilling. It’s designed as a cold salad.
How many servings does this recipe make?
This recipe serves about 6 to 8 people as a side. For BBQ side dishes for large groups, double or triple the recipe using the same ratios.

Steakhouse Potato Salad
Equipment
- Large pot
- Mixing Bowl
- Whisk
Ingredients
- 2.5 lbs baby red potatoes, halved
- 4 strips thick-cut bacon, cooked and crumbled
- 1/2 cup sharp cheddar cheese, shredded
- 3 green onions, thinly sliced
- 2 tbsp fresh chives, chopped
- 1/2 cup sour cream
- 1/3 cup mayonnaise
- 1 tbsp apple cider vinegar
- 1 tsp Dijon mustard
- 1/2 tsp garlic powder
- 1/2 tsp smoked paprika
- salt and black pepper to taste
Instructions
- Boil the potatoes in salted water for 12 to 15 minutes until fork-tender. Drain and cool to room temperature.
- Whisk together sour cream, mayonnaise, apple cider vinegar, Dijon mustard, garlic powder, and smoked paprika. Season with salt and pepper.
- Fold the cooled potatoes into the dressing gently, keeping chunks intact.
- Stir in bacon, cheddar, and green onions.
- Refrigerate for at least 1 hour. Top with fresh chives before serving.
Notes
- Dress potatoes while slightly warm for better flavor absorption.
- Add chives right before serving, not before chilling.
- Stir in a spoonful of sour cream before serving leftovers to loosen the texture.
