5 Reasons Texas Roadhouse "Legendary" Steaks Are So Cheap

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At first sight, Texas Roadhouse and the majority of the other casual, mid-range steakhouse businesses you'll find all throughout America share a lot of similarities.

Texas Roadhouse regularly charges less for its steak than its main rivals, such as Outback Steakhouse and Black Angus.

Although we can definitely appreciate paying less for a comparable steak, we were puzzled as to how Texas Roadhouse manages to keep its steaks so cheap.

1. Low prices are part of the business model

The foundation of Texas Roadhouse's business strategy is drawing a sizable crowd inside and serving them food.

2. The chain makes deals with beef suppliers

According to Harvard's Technology and Operations Management, Texas Roadhouse secures arrangements on beef with its suppliers that are frequently in place for months or even a year or longer.

3. Texas Roadhouse skips lunch

Texas Roadhouse is only open for dinner during the weekdays, and only serves lunch on Saturday and Sunday, in contrast to the majority of casual steakhouse franchises, which typically open at 11 AM daily.

4. The menu stays the same

To keep consumers coming back, many restaurants frequently update their menus, provide transient specials, and rotate their offerings throughout the year.

5. A question of size

Texas Roadhouse is the largest steakhouse in America in terms of sales, according to Statista. It generated staggering systemwide sales of $3.717 billion in 2021, much surpassing the $2.621 billion generated by Outback Steakhouse, the second-largest franchise.

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