How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (2024)

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The first Texas Roadhouse opened in Clarksvillie, Indiana in 1993. It wasn't an easy road though, and founder Kent Taylor worked at other restaurant chains and concepts before landing on Texas Roadhouse. Taylor worked as a KFC area manager before starting Texas Roadhouse. He wasn't successful within the KFC system because he was a "freethinker," and a "rogue," Taylor wrote. Taylor also managed a Hooters location before pursuing his own restaurant ideas full-time. Taylor left the job and pitched John Y. Brown, former Kentucky governor and partial owner of KFC, on his restaurant concept for the fifth time. Brown invested $80,000 in Taylor's steakhouse concept, but it wasn't Texas Roadhouse. It was a Colorado-themed steakhouse, called Buckhead Bar and Grill. When the partnership with Brown fell apart, Taylor came up with another idea: a cowboy-themed steakhouse. Things weren't easy from there, though. Taylor says he pitched the Texas Roadhouse concept to more than 100 investors before he found backers. In 1992, Taylor found three investors willing to put in $100,000 each after being convinced by his concept drawings on a co*cktail napkin. Taylor recruited staff for the growing Texas Roadhouse chain by eating at other restaurants and introducing himself to servers, hosts, and cooks he thought were doing a good job, he wrote in his book. Managing partners who ran each location had skin in the game because Taylor required they put $25,000 down and receive 10% of the location's profits. Taylor and his team originally considered giving out free popcorn before settling on the chain's iconic rolls. Developing the perfect recipe for the rolls took three weeks, experimenting with different types of yeast and flour. There was also an ill-fated attempt to sell Mexican food at the restaurant, which lasted just two weeks thanks to "poor execution and almost no sales," Taylor wrote. Since then, the chain has expanded from medium-sized US cities to smaller markets, with promising sales. In 2002, singer Willie Nelson became an official partner of Texas Roadhouse by promoting the chain, and some locations have a corner of decor dedicated to him. By 2004, 10 years after it first opened, there were 162 Texas Roadhouse locations in 32 states. That same year, Texas Roadhouse filed for an IPO. In the SEC filing, Texas Roadhouse said its operating strategy was based on high-quality food, low price points, and only serving dinner during weekdays. The chain expanded outside the US for the first time in 2011. It now has 15 locations in Middle Eastern countries. Texas Roadhouse has grown steadily since, with 643 locations as of September 2022. Texas Roadhouse executives are planning to eventually grow to 900 US locations, the company said in October 2022. That pace of growth could put Texas Roadhouse on pace to become the largest casual chain by sales in the US. In 2021, the chain did $3.7 billion in sales, with average unit sales of about $6 million, according to earnings statements. Those high sales are how the chain can outpace or come close to competitors with more locations, like Chili's and Olive Garden. In 2021, CEO and founder Kent Taylor died at age 65. President Jerry Morgan took over as CEO and oversaw an explosion of the chain's to-go business. FAQs References
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Mary Meisenzahl

2023-01-13T17:35:34Z

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (1)

Irene Jiang / Business Insider
  • Texas Roadhouse's sales are gaining on bigger chains like Olive Garden.
  • The chain started from just one location in 1994 to hundreds in 2023, with plans to reach 900.
  • Founder Kent Taylor worked at KFC and Hooters before he found investors for Texas Roadhouse.

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The first Texas Roadhouse opened in Clarksvillie, Indiana in 1993.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (2)

Photo By Raymond Boyd/Getty Images

Source: Texas Roadhouse

It wasn't an easy road though, and founder Kent Taylor worked at other restaurant chains and concepts before landing on Texas Roadhouse.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (3)

chapin31/iStock

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Taylor worked as a KFC area manager before starting Texas Roadhouse.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (4)

Omar Marques/SOPA Images/LightRocket via Getty Images

Source:Made From Scratchby Kent Taylor

He wasn't successful within the KFC system because he was a "freethinker," and a "rogue," Taylor wrote.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (5)

Justin Sullivan/Getty

Taylor also managed a Hooters location before pursuing his own restaurant ideas full-time.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (6)

Hooters Facebook

Source: Mashed

Taylor left the job and pitched John Y. Brown, former Kentucky governor and partial owner of KFC, on his restaurant concept for the fifth time.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (7)

Photo by Stephen J. Cohen/WireImage

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Brown invested $80,000 in Taylor's steakhouse concept, but it wasn't Texas Roadhouse.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (8)

Irene Jiang / Business Insider

It was a Colorado-themed steakhouse, called Buckhead Bar and Grill.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (9)

Ed Andrieski/AP Photo

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When the partnership with Brown fell apart, Taylor came up with another idea: a cowboy-themed steakhouse.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (10)

Mary Meisenzahl/Insider

Source: Fortune

Things weren't easy from there, though. Taylor says he pitched the Texas Roadhouse concept to more than 100 investors before he found backers.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (11)

Irene Jiang / Business Insider

Source: Biz Journals

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In 1992, Taylor found three investors willing to put in $100,000 each after being convinced by his concept drawings on a co*cktail napkin.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (12)

Texas Roadhouse

Source: Texas Roadhouse

Taylor recruited staff for the growing Texas Roadhouse chain by eating at other restaurants and introducing himself to servers, hosts, and cooks he thought were doing a good job, he wrote in his book.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (13)

Lars Ronbog/Getty Images

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Managing partners who ran each location had skin in the game because Taylor required they put $25,000 down and receive 10% of the location's profits.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (14)

Mary Meisenzahl/Insider

Source: Restaurant Finance Monitor

Taylor and his team originally considered giving out free popcorn before settling on the chain's iconic rolls.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (15)

Mary Meisenzahl/Insider

Source:Made From Scratchby Kent Taylor

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Developing the perfect recipe for the rolls took three weeks, experimenting with different types of yeast and flour.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (16)

Mary Meisenzahl/Insider

There was also an ill-fated attempt to sell Mexican food at the restaurant, which lasted just two weeks thanks to "poor execution and almost no sales," Taylor wrote.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (17)

Shutterstock

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Since then, the chain has expanded from medium-sized US cities to smaller markets, with promising sales.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (18)

Mary Meisenzahl/Insider

Source: Restaurant Business Online

In 2002, singer Willie Nelson became an official partner of Texas Roadhouse by promoting the chain, and some locations have a corner of decor dedicated to him.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (19)

AP Photo/Hans Pennink

Source: Mashed

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By 2004, 10 years after it first opened, there were 162 Texas Roadhouse locations in 32 states.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (20)

Irene Jiang / Business Insider

Source: Marketwatch

That same year, Texas Roadhouse filed for an IPO.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (21)

Irene Jiang / Business Insider

Advertisem*nt

In the SEC filing, Texas Roadhouse said its operating strategy was based on high-quality food, low price points, and only serving dinner during weekdays.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (22)

Mary Meisenzahl/Insider

The chain expanded outside the US for the first time in 2011. It now has 15 locations in Middle Eastern countries.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (23)

Mary Meisenzahl/Insider

Source: Texas Roadhouse

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Texas Roadhouse has grown steadily since, with 643 locations as of September 2022.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (24)

Mary Meisenzahl/Insider

Texas Roadhouse executives are planning to eventually grow to 900 US locations, the company said in October 2022.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (25)

Irene Jiang / Business Insider

Source: Restaurant Business Online

Advertisem*nt

That pace of growth could put Texas Roadhouse on pace to become the largest casual chain by sales in the US.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (26)

Mary Meisenzahl/Insider

In 2021, the chain did $3.7 billion in sales, with average unit sales of about $6 million, according to earnings statements.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (27)

Mary Meisenzahl/Insider

Advertisem*nt

Those high sales are how the chain can outpace or come close to competitors with more locations, like Chili's and Olive Garden.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (28)

Diane Macdonald / Contributor/ Getty Images

In 2021, CEO and founder Kent Taylor died at age 65.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (29)

Texas Roadhouse

Source: Insider

Advertisem*nt

President Jerry Morgan took over as CEO and oversaw an explosion of the chain's to-go business.

How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (30)

Irene Jiang / Business Insider

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How Texas Roadhouse grew from humble beginnings in the Midwest to one of the largest casual dining chains in the US (2024)

FAQs

How did Texas Roadhouse get started? ›

It all began on February 17, 1993, when Kent Taylor opened the first Texas Roadhouse in Clarksville, Indiana. Kent's goal was to own not just a family restaurant and not just a steak restaurant, but a place where everyone, of all ages, could come and have a great meal and great fun for a great price.

Why is Texas Roadhouse so successful? ›

It all comes down to our people, our products, our culture, and our love for what we do! We import whole loins and hand-cut them daily in a cold room to ensure safety and the best quality. We hand cut every single steak, every single time. We do not jump from trend to trend, we stay true to the Texas Roadhouse Way!

What makes Texas Roadhouse unique? ›

Texas Roadhouse is famous for its hand-cut steaks, fall-off-the-bone ribs, made-from-scratch sides, and fresh-baked bread.

Where did Roadhouse originate? ›

From the 1890s in Alaska and the Yukon, beginning with the gold rush, roadhouses were checkpoints where dog drivers (mushers, or dog sledders), horse-driven sleighs, and people on snowshoes, skis, or walking would stop overnight for shelter and a hot meal.

When did Texas Roadhouse become popular? ›

The chain expanded rapidly in the late 1990s, and by the end of 1999, 67 restaurants had been opened. In 2004, Roadhouse became a public company.

What is Texas Roadhouse history? ›

Texas Roadhouse wasn't founded in Texas

While many might associate the restaurant with the Lone Star state, Kent Taylor actually opened the first Texas Roadhouse in Clarksville, Indiana, in 1993. Even though Taylor didn't ever call Texas home, he has a great appreciation for the kind of food that is popular there.

Who is Texas Roadhouse biggest competitor? ›

Texas Roadhouse main competitors are The Cheesecake Factory, Morton's The Steakhouse, and Ruth's Chris Steak House. Competitor Summary. See how Texas Roadhouse compares to its main competitors: Pizza Hut has the most employees (350,000).

What is Texas Roadhouse culture? ›

Legendary Food, Legendary Service

At Texas Roadhouse, diversity, equity, & inclusion, along with opportunity are a big part of our culture. We invite you to join us and share in our commitment to being one of the best employers in town. We believe in putting our people first.

What are the four core values at Texas Roadhouse? ›

For an inclusive and people-first culture, our core values are everything - Passion, Partnership, Integrity, and Fun... All with Purpose.

Why do people like Texas Roadhouse so much? ›

One of the great options Texas Roadhouse offers is the chance to look at the raw steak and choose the one you want. I have seen this at high-end steakhouses but not at a chain like this. It's a nice visual as you walk in, and it probably gets people to buy more expensive steaks.

What is the slogan for Texas Roadhouse? ›

Legendary Food, Legendary Service® starts with taking no shortcuts.

Why is Texas Roadhouse steak so tender? ›

How does Texas Roadhouse tenderise their steaks? Season each side of the steak well with the seasoning and set aside to rest for about 40 minutes. This causes the salt to infiltrate the surface (through osmosis) and actually aids in the breakdown of muscle fibres, resulting in more tender meat.

Who started the Texas Roadhouse franchise? ›

Kent Taylor, started the business in 1993 with the opening of the first Texas Roadhouse in Clarksville, Indiana. Since then, the Company has grown to three concepts.

What is Texas Roadhouse based on? ›

History of Texas Roadhouse

Despite its Texan-themed branding, it did not originate in Texas. Its inception was inspired by Taylor's fondness for good food and his desire to create a family-friendly dining environment that offered hand-cut steaks, top-quality ribs, and made-from-scratch sides.

Why did Texas Roadhouse stop giving peanuts? ›

Since Texas Roadhouse restaurants are franchised operations, it's possible that the peanut practices vary from location to location. The overall consensus online is that the practice was phased out during the COVID-19 pandemic, but that bags of peanuts are still available to go if you ask.

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