Texas Roadhouse

Texas Roadhouse is cheaper than Outback Steakhouse, uses better beef and makes twice as much money per restaurant as they do. They both are selling steak in suburban steak houses. But there's a huge thing that sets them apart. Even though they were started just about the same time. You can see it when you go into one. Basically, there's hand cut steaks at Texas Roadhouse, lines out the door, peanut shells on the floor and tons of happy customers. Outback is a outdated Australian theme with a blouse and onion and basically classic sit down, well, slow casual. Roadhouse charge is $18 to $20 per person, while outback is $28 to $30 per person. But here's where all that becomes a difference. Your typical Texas Roadhouse does $8.2 million per store in sales. Outback state house, less than half that. The things that Texas Roadhouse does special, creates a fly wheel. Means they can buy more beef, they can get it for cheaper, they can take better advantage of their real estate and in the end be more profitable. Well, beef prices went up 30% in 2024. Outback raise prices. Texas Roadhouse just said, hey, we're going to grow our way out of And the end the other huge difference, Texas Roadhouse founder died in 2021. He had never sold any stock, but in 2006, the founders of Outback, they had cash out. So while close insiders kept Texas Roadhouse playing the long game, finance wizards and hedge funds and private equity, led Outback State House, well, to where it is today. Struggle. If you want to watch a long form video about the rise and fall of Outback State House and how it all went wrong, I did one here on my channel. Check out the link below in the comments or on my bio.