Texas Roadhouse
The highest-grossing casual-dining chain in America, a steakhouse that passed Olive Garden and Applebee’s with under 800 restaurants.
7 figures on Texas Roadhouse, drawn from 5 Modern MBA case studies.
The figures
US dollars1
| Against its own chart | |||
|---|---|---|---|
| Average check size against leading restaurant chains | $19.68 | 3rd of 10 · top $26.50 | How much a taco truck actually makes |
Percentages4
| Against its own chart | |||
|---|---|---|---|
| Food and labor as a share of sales · Food costs | 35% | 1st of 6 · top 35% | Why diners never go out of business |
| Food and labor as a share of sales · Labor costs | 33% | 4th of 6 · top 39% | Why diners never go out of business |
| Restaurant-level operating margins across the industry in 2010 | 18.8% | 4th of 8 · top 26.6% | Why Chipotle got so much worse |
| Store-level operating margin by restaurant chain in 2022 | 16% | 6th of 13 · top 24% | Why Taco Bell got so expensive |
Durations1
| Against its own chart | |||
|---|---|---|---|
| Months a restaurant must be open before it counts as comparable | 18 mo | 2nd of 11 · top 24 mo | Why the Popeyes chicken sandwich was so good |
Measures1
| Against its own chart | |||
|---|---|---|---|
| Average location size in square feet, 2022 | 8,000 sq ft | 3rd of 8 · top 8,750 sq ft | Why diners never go out of business |
Case studies covering Texas Roadhouse
Case study — Food & beverageWhy Chipotle got so much worseA weekly staple became a byword for small portions and high prices in under ten years. Here is what broke.10 min read
Case study — Food & beverageWhy Taco Bell got so expensiveThe most profitable chain in fast food is being squeezed hardest, and the reason is KFC and Pizza Hut.11 min read
Case study — Food & beverageWhy the Popeyes chicken sandwich was so goodThe sandwich came from a decade of R&D discipline its new owners inherited and did not build. That is the problem.14 min read
Case study — Food & beverageWhy diners never go out of businessThree chains, three opposite strategies, and identical 13% store margins. Diners survive everything and grow at nothing.14 min read
Case study — Food & beverageHow much a taco truck actually makesTwo sisters run fifteen unbranded taco stands in LA grossing $7.58M a year. Almost nobody knows the business exists.11 min read