The chain added bump outs to more than half of its system last year, translating to 20 to 40 more seats
Texas Roadhouse’s average unit volumes exceeded $8 million in 2024 for the first time in the company’s history. This essentially doubles where the company’s AUVs were 10 years ago, according to Technomic data.
Needless to say, a lot of work has been done to support those higher volumes as the brand aspires to reach 900 units. Perhaps the brunt of that work has come from adding bump-outs to existing and new locations.
Those bump outs typically add 20 to 40 seats to an existing restaurant, head of investor relations Michael Bailen said during the company’s earnings call Thursday. Last year, Texas Roadhouse bumped out more than half of its system and those that did not add the extra space were either beholden by space constraints or landlord parameters.
Notably, Texas Roadhouse won’t add a bump out to a restaurant until it’s been open “for at least a couple of years,” Bailen said. However, new stores include footers and some capacity to add bump-outs, CFO Chris Monroe added.
“We have that in mind and we’re getting some of that cost out of the way so we can do that once they’ve ‘earned their bump out,’” Monroe said. “That allows us to plan ahead on the new stores.”
Additionally, Texas Roadhouse plans to relocate as many as nine of its highest-performing restaurants to new, larger locations with more parking.
Off-premises improvement
Much of Texas Roadhouse’s higher volumes also now come from its to-go business, which represents about 13% of average weekly sales.
“It continues to be something that the guest appreciates, and our operators have gotten better about executing to-go and having the plans in place,” Bailen said. “They know how important it is to quote accurate wait times to make sure everything is in the bag, and we just keep getting better and better at that and the guest is appreciating that and coming back for more.”
Though the chain remains a holdout on delivery, there is a single Texas Roadhouse location with that channel, while its sister chains Bubba’s 33 and Jaggers both offer delivery.
“We have it in Jaggers, we have it at Bubba’s, we have it in one Roadhouse, and we’re continuing to learn on it. That’s probably where we’re at right now,” said CEO Jerry Morgan.
Technology
Texas Roadhouse has also upped its investments in technology solutions to manage more guests. All locations are expected to include a digital kitchen display system by the end of this year, for instance, which creates a more efficient and less stressful environment for back-of-house employees, executives said.
“We will also continue upgrading the guest management system that our restaurants use at the host stand. These upgrades are allowing us to quote more accurate wait times and improve seating utilization,” Morgan said.
Half of the system is now equipped with the guest management system, which was created by the company to handle longer wait times.
“It is about table efficiencies. It is about that waitlist management side,” Morgan said. “We are feeling very good about where it's at and what it's doing, and, more importantly, our operators are wanting it. They see the value in it … So, we feel very comfortable going forward.”
Contact Alicia Kelso at [email protected]
Read more about:
Texas Roadhouse Inc.You May Also Like
