Texas Roadhouse Is No. 1 in Casual Dining. Its CEO Explains Why. | WSJ

TL;DR

Texas Roadhouse overtook Olive Garden in 2024 by prioritizing value — free bread, peanuts, and hand-cut steaks starting at $19.

Key Points

• 1.CEO Jerry Morgan says the brand wins on atmosphere and hospitality first — customers mention free bread, honey cinnamon butter, and friendly staff before even mentioning steaks.
• 2.Beef makes up ~50% of their commodity basket, and sirloin prices rose nearly 16% year-over-year; the company responded with modest ~2% price hikes (late 2024 and April 2025) while absorbing remaining costs rather than fully passing them to customers.
• 3.To offset rising costs without raising prices aggressively, Morgan focuses on small operational savings — delaying fryer and light usage until needed — describing it as managing the restaurant "like your own home."
• 4.Texas Roadhouse plans to grow from its current footprint to over 900 locations, adding roughly 20 restaurants per year, while the branded peanut bags taken home by customers serve as free community marketing.