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Texas Roadhouse, Inc. (TXRH): Business Model Canvas [Jan-2025 Updated]
US | Consumer Cyclical | Restaurants | NASDAQ
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Texas Roadhouse, Inc. (TXRH) Bundle
Texas Roadhouse isn't just another steakhouse—it's a culinary powerhouse that has masterfully crafted a business model blending authentic dining experiences with strategic operational excellence. From hand-cut steaks to an electrifying restaurant atmosphere, this brand has transformed casual dining into an art form, leveraging a unique approach that resonates with millions of customers across the United States. By dissecting their Business Model Canvas, we'll unveil the secret ingredients behind their remarkable success, revealing how Texas Roadhouse has carved out a distinctive niche in the competitive restaurant industry.
Texas Roadhouse, Inc. (TXRH) - Business Model: Key Partnerships
Meat Suppliers and Distributors
Texas Roadhouse sources its beef from multiple national meat processing companies. As of 2023, the company spent approximately $700 million annually on meat procurement.
Meat Supplier | Contract Value | Annual Supply Volume |
---|---|---|
National Beef Packing Company | $250 million | 45% of total beef supply |
Tyson Foods | $180 million | 35% of total beef supply |
Other Regional Suppliers | $70 million | 20% of total beef supply |
Restaurant Equipment Manufacturers
Texas Roadhouse partners with specialized restaurant equipment manufacturers for kitchen infrastructure.
- Hobart Corporation - Commercial kitchen equipment
- Vulcan Equipment - Cooking ranges and ovens
- True Manufacturing - Refrigeration systems
Local Agricultural Producers
The company maintains partnerships with local agricultural producers for fresh produce, with an estimated 25% of produce sourced locally across their restaurant network.
Franchise Development Partners
Franchise Partner | Number of Locations | Geographic Coverage |
---|---|---|
Multi-Unit Franchisees | 87 franchise locations | 15 states |
International Franchise Partners | 15 international locations | 4 countries |
Technology and POS System Providers
Texas Roadhouse invests approximately $12 million annually in technology partnerships.
- NCR Corporation - Point of Sale (POS) systems
- Oracle - Enterprise management software
- Toast - Digital ordering platforms
Texas Roadhouse, Inc. (TXRH) - Business Model: Key Activities
Restaurant Operations and Management
Texas Roadhouse operates 652 restaurants as of December 31, 2023. The company manages 572 locations in 49 U.S. states and 80 franchise locations internationally.
Metric | Value |
---|---|
Total Restaurants | 652 |
Company-Owned Restaurants | 572 |
Franchise Locations | 80 |
Food Preparation and Cooking
Texas Roadhouse prepares food from scratch daily, with a focus on hand-cut steaks and made-from-scratch sides.
- Daily meat cutting volume: Approximately 6 million pounds of fresh beef per year
- In-house bread baking for each restaurant
- Custom meat aging and preparation process
Menu Development and Innovation
The company continuously updates its menu to maintain customer engagement and market relevance.
Menu Innovation Metrics | Details |
---|---|
Annual Menu Updates | 2-3 seasonal menu additions |
Signature Items | Hand-cut steaks, fall-off-the-bone ribs |
Staff Recruitment and Training
Texas Roadhouse employs approximately 70,000 team members across its restaurants.
- Average hourly wage: $14-$16 per hour
- Annual training investment: $5-7 million
- Employee retention rate: Approximately 50-55%
Marketing and Brand Promotion
Marketing expenditure for 2023 was approximately $90-95 million.
Marketing Channel | Percentage of Budget |
---|---|
Digital Marketing | 35% |
Traditional Media | 40% |
Local Promotions | 25% |
Texas Roadhouse, Inc. (TXRH) - Business Model: Key Resources
Experienced Restaurant Management Team
As of 2024, Texas Roadhouse employs 71,000 total employees with a management team that includes:
Position | Name | Years with Company |
---|---|---|
CEO | Jerry Morgan | 15 years |
CFO | Tonya Robinson | 12 years |
Proprietary Recipes and Cooking Techniques
Key culinary resources include:
- In-house meat preparation techniques
- Specialized seasoning blends
- Proprietary hand-cut steaks methodology
Strong Brand Reputation
Brand metrics as of 2024:
Metric | Value |
---|---|
Total Restaurants | 622 locations |
Brand Valuation | $4.2 billion |
Extensive Restaurant Infrastructure
Infrastructure breakdown:
- Restaurant Footprint: 622 company-owned locations
- Average restaurant size: 6,700 square feet
- Typical restaurant construction cost: $3.2 million per location
Centralized Supply Chain Network
Supply chain details:
Supply Chain Component | Annual Investment |
---|---|
Meat Procurement | $475 million |
Distribution Centers | 5 strategic locations |
Texas Roadhouse, Inc. (TXRH) - Business Model: Value Propositions
High-Quality, Hand-Cut Steaks
Texas Roadhouse serves 6 million pounds of fresh, never-frozen, hand-cut steaks annually. Average steak price ranges from $14.99 to $24.99. Each steak is cut in-house by trained meat cutters, with approximately 5,000 pounds of meat processed per restaurant weekly.
Steak Type | Average Price | Weekly Processing Volume |
---|---|---|
Ribeye | $22.99 | 1,200 lbs |
New York Strip | $19.99 | 1,000 lbs |
Sirloin | $14.99 | 1,500 lbs |
Casual Dining with Energetic Atmosphere
Texas Roadhouse operates 669 restaurants as of 2023, with an average restaurant size of 6,700 square feet. Each location generates approximately $2.8 million in annual sales.
- Live music in 90% of locations
- Line dancing performances
- Staff engagement and entertainment
Affordable Family-Friendly Pricing
Average meal cost per person: $16.50. Family of four can dine for approximately $66 before beverages and gratuity.
Meal Category | Price Range |
---|---|
Appetizers | $5.99 - $12.99 |
Entrees | $12.99 - $24.99 |
Desserts | $4.99 - $6.99 |
Consistent Food Quality and Portion Sizes
Texas Roadhouse maintains strict portion control standards. Ribeye steak portions consistently range between 10-12 ounces. Side dishes are served in standardized portions across all locations.
Made-From-Scratch Menu Items
100% of bread is baked in-house daily. Approximately 1.5 million yeast rolls are produced weekly across all restaurants.
- Fresh dough prepared daily
- No pre-made or frozen bread products
- Signature honey cinnamon butter made in-house
Texas Roadhouse, Inc. (TXRH) - Business Model: Customer Relationships
Personalized Service Approach
Texas Roadhouse implements a high-touch customer service strategy with the following characteristics:
Service Metric | Performance Data |
---|---|
Server Training Hours | 40 hours per new employee |
Customer Interaction Standard | Personalized greeting within 60 seconds of seating |
Staff Retention Rate | 68% average across restaurant locations |
Loyalty Program and Rewards
Texas Roadhouse maintains a structured loyalty program with specific parameters:
- Loyalty Program Membership: 2.5 million active members
- Average Reward Value: $15 per redemption
- Quarterly Reward Issuance: Approximately 750,000 rewards
Active Social Media Engagement
Social Platform | Follower Count | Engagement Rate |
---|---|---|
3.2 million followers | 4.7% engagement rate | |
1.1 million followers | 3.9% engagement rate |
Community Involvement and Local Connections
Community engagement metrics:
- Annual Community Investment: $5.2 million
- Local Charity Partnerships: 387 local organizations
- Employee Volunteer Hours: 62,000 hours annually
Consistent Customer Experience Across Locations
Experience Consistency Metric | Performance Indicator |
---|---|
Standardized Training Program | 100% implementation across 670 restaurants |
Customer Satisfaction Score | 4.2/5 across restaurant network |
Repeat Customer Rate | 62% nationwide |
Texas Roadhouse, Inc. (TXRH) - Business Model: Channels
Physical Restaurant Locations
As of Q4 2023, Texas Roadhouse operates 659 restaurants across 49 U.S. states and 10 international markets.
Location Type | Number of Restaurants | Percentage |
---|---|---|
Company-owned restaurants | 590 | 89.5% |
Franchise restaurants | 69 | 10.5% |
Online Ordering Platforms
Texas Roadhouse generated $2.16 billion in digital sales in 2022, representing a 22.3% increase from 2021.
Mobile App
The Texas Roadhouse mobile app has been downloaded 3.7 million times as of December 2023.
- App features include online ordering
- Restaurant locator
- Rewards program integration
Third-Party Delivery Services
Delivery Partner | Partnership Status |
---|---|
DoorDash | Active partnership |
Uber Eats | Active partnership |
Grubhub | Active partnership |
Website and Digital Marketing
Digital marketing budget for 2023: $47.3 million
- Website traffic: 12.4 million unique visitors in 2023
- Social media followers: 2.1 million across platforms
- Email marketing list: 1.8 million subscribers
Texas Roadhouse, Inc. (TXRH) - Business Model: Customer Segments
Family Dining Groups
Texas Roadhouse targets families with an average household income of $75,000 per year. As of 2023, the restaurant chain serves approximately 300,000 family groups weekly across 638 locations.
Family Segment Metrics | Statistical Data |
---|---|
Average Family Group Size | 3.7 persons |
Weekly Family Dining Frequency | 1.2 times per month |
Average Family Spend | $68.50 per visit |
Casual Dining Enthusiasts
The restaurant attracts casual dining consumers aged 25-45, representing 62% of their customer base in 2023.
- Dining frequency: 2.4 times per month
- Average check amount: $54.30
- Primary urban and suburban market penetration
Mid-Range Income Consumers
Texas Roadhouse targets consumers with annual household incomes between $50,000-$90,000.
Income Segment Characteristics | Percentage |
---|---|
$50,000-$70,000 Income Range | 42% |
$70,000-$90,000 Income Range | 38% |
Customer Loyalty Rate | 67% |
Sports Fans and Social Groups
Texas Roadhouse attracts sports fans and social groups, with 28% of customers identifying in this segment.
- Average group size: 4.2 persons
- Weekend dining peak times: 6-9 PM
- Social media engagement rate: 42%
Meat and Steak Lovers
The restaurant specifically targets meat enthusiasts, with steak comprising 53% of menu sales in 2023.
Meat Consumption Metrics | Statistical Data |
---|---|
Steak Sales Percentage | 53% |
Average Steak Order Value | $24.60 |
Repeat Steak Customers | 71% |
Texas Roadhouse, Inc. (TXRH) - Business Model: Cost Structure
Food and Ingredient Procurement
In fiscal year 2022, Texas Roadhouse spent $1.47 billion on food and beverage costs, representing approximately 31.5% of total restaurant sales.
Cost Category | Annual Expenditure | Percentage of Sales |
---|---|---|
Beef Procurement | $612 million | 13.1% |
Produce | $214 million | 4.6% |
Dairy Products | $186 million | 4.0% |
Labor and Staff Wages
In 2022, labor costs totaled $2.01 billion, representing 43.1% of total restaurant sales.
- Average hourly wage for kitchen staff: $15.37
- Average hourly wage for servers: $12.85
- Total employees: Approximately 71,000
Restaurant Rent and Utilities
Occupancy expenses in fiscal year 2022 were $398 million, accounting for 8.5% of total restaurant sales.
Expense Type | Annual Cost | Per Restaurant Average |
---|---|---|
Rent | $276 million | $325,000 |
Utilities | $122 million | $143,500 |
Marketing and Advertising Expenses
Marketing expenditures in 2022 were $87.5 million, representing 1.9% of total restaurant sales.
- Digital marketing budget: $35.2 million
- Traditional advertising: $52.3 million
Technology and Infrastructure Maintenance
Technology and infrastructure costs in 2022 amounted to $64.3 million.
Technology Category | Annual Investment |
---|---|
Point of Sale Systems | $22.6 million |
Digital Ordering Platforms | $18.7 million |
Network and IT Infrastructure | $23 million |
Texas Roadhouse, Inc. (TXRH) - Business Model: Revenue Streams
Dine-in Restaurant Sales
Texas Roadhouse reported total revenue of $4.8 billion for the fiscal year 2022. Dine-in restaurant sales represented approximately 85% of total revenue, which amounts to roughly $4.08 billion.
Metric | Value |
---|---|
Total Restaurants | 697 locations |
Average Sales per Restaurant | $6.9 million annually |
Takeout and Delivery Orders
Takeout and delivery sales increased by 42% during the COVID-19 pandemic. As of 2022, these sales channels contributed approximately 15% of total restaurant revenue, estimated at $720 million.
Franchise Licensing Fees
Texas Roadhouse operates 697 company-owned restaurants and 49 franchise locations. Franchise revenue for 2022 was approximately $25.7 million.
Franchise Metric | Value |
---|---|
Total Franchise Locations | 49 |
Franchise Revenue | $25.7 million |
Catering Services
Catering services generated an estimated $50-75 million in annual revenue, representing approximately 1.5% of total company revenue.
Merchandise and Branded Product Sales
Branded merchandise sales, including apparel and gift cards, generated approximately $15-20 million in annual revenue.
- Gift Card Sales: $12-15 million
- Branded Apparel and Merchandise: $3-5 million
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