Introduction
Texas Roadhouse is a popular American steakhouse chain that has been serving up delicious steaks, ribs, and other classic American dishes since 1993. With over 500 locations across the United States, Texas Roadhouse is one of the most successful restaurant chains in the country. Recently, the company announced plans to expand to 900 locations by the end of 2021. This ambitious goal will require a significant investment in new locations, staff, and marketing. In this article, we will discuss the plans Texas Roadhouse has in place to reach this goal and how it will benefit the company and its customers.
Texas Roadhouse Plans To Grow To 900 Locations
Texas Roadhouse, the popular steakhouse chain, has announced plans to expand to 900 locations by the end of 2021. The chain currently has 590 locations in 49 states and six countries, and is looking to add 310 more locations in the next two years.
The expansion is part of the company’s long-term growth strategy, which includes opening new restaurants in existing markets and entering new markets. The company is also looking to expand its catering and delivery services, as well as its online ordering capabilities.
Texas Roadhouse CEO Wayne Kent said in a statement, “We are excited to continue our growth and expansion into new markets. We are confident that our commitment to providing quality food and service will continue to drive our success.”
The chain has seen success in recent years, with sales increasing by 8.5 percent in 2018 and 6.2 percent in 2019. The company is also looking to expand its menu offerings, with new items such as steak tacos and a new line of burgers.
Texas Roadhouse is also looking to expand its presence in international markets, with plans to open its first restaurant in Mexico in 2020. The company is also looking to open locations in Canada, the United Kingdom, and other countries.
The expansion plans come as the restaurant industry continues to face challenges due to the coronavirus pandemic. Many restaurants have had to close their doors due to the pandemic, and the industry is expected to take a hit in the coming months.
Despite the challenges, Texas Roadhouse is confident that its expansion plans will help the company continue to grow and succeed in the future.
If all goes according to one highly ambitious expansion plan, a new steakhouse restaurant could be coming to a location near you—especially if you live in a smaller town.
Texas Roadhouse announced plans last week to head out on the road in a major way with an ambitious goal of growing to 900 U.S. locations. The steakhouse chain already boasts 596 restaurants, and has been following a trajectory to 700 or 800 stores, but blossoming sales have led to a more ambitious growth projection.
The company had a fantastic 2021, bringing in over $3.7 billion in revenue, which makes it the fourth largest casual-dining chain in the country, behind Olive Garden ($4.2 billion), Applebee’s ($4.2 billion), and Buffalo Wild Wings ($3.7 billion). In fact, the chicken wing chain just barely beat out the steakhouse for the third spot, even though it boasts more than double the footprint at 1,212 locations.
Texas Roadhouse was able to generate average unit volumes of over $6 million, which are the highest in the casual-dining segment, according to Restaurant Business. At 900 locations, the chain could potentially generate $5.4 billion annually and take the top spot of casual dining.
Another factor that bodes well for Texas Roadhouse: Both Applebee’s and Olive Garden have slowed down national expansion efforts in recent years. While the Roadhouse has seen its U.S. location count increase by 23% since 2016, Applebee’s shrunk by 15%, while Olive Garden saw a modest increase of 4.3%.
So what’s the secret to Texas Roadhouse’s success? Smaller markets. Founded in 1993, the steakhouse brand originally focused on medium-sized cities and metropolitan areas. Over the past decade or so, however, the brand ventured into smaller towns with populations around 40,000 to 60,000 people.
“We changed that number because we do see the upside, and the success in some of the smaller communities that we’ve been able to go in really allowed us to up that number,” CEO Jerry Morgan said of the more ambitious growth plans during an earnings call last week. “If we continue to do it right and all the world works with us, we think that we can get to that number.”
John Anderer