Texas Roadhouse

Texas Roadhouse

Information based on 2024 FDD

Food & Beverage · Full Service Restaurants

Investment min
$4M
Total: $4M–$6M
Avg gross revenue
N/A
Unit-level, 2024
Franchise fee
$40K
Per current disclosure
Royalty
4%
of gross revenue
Locations
56
Franchising since 1995

Description

What is Texas Roadhouse?

Texas Roadhouse has established itself as one of America's most beloved steakhouse chains, delivering a unique blend of Southern hospitality and high-quality, made-from-scratch meals since 1993. Known for their legendary hand-cut steaks, fall-off-the-bone ribs, and freshly baked bread with cinnamon butter, Texas Roadhouse creates an energetic, family-friendly dining atmosphere that captures the essence of a genuine Texas-style restaurant.

What sets Texas Roadhouse apart is their unwavering commitment to quality and consistency. Each location features an in-house butcher who hand-cuts every steak daily, ensuring premium quality and freshness. Their 'Legendary Food, Legendary Service' philosophy extends beyond just the menu – it's embedded in their entire operation, from the lively atmosphere with country music to the enthusiastic staff who occasionally break into line dancing.

The restaurant's success is built on a foundation of exceptional customer service, generous portions, and value-driven pricing. Their menu showcases a variety of options beyond steaks, including chicken specialties, country dinners, and fresh-made salads. The casual, rustic décor, complete with hand-painted murals and Texas-themed memorabilia, creates a welcoming environment that resonates with diners across the country.

Texas Roadhouse franchises benefit from a proven business model, comprehensive training programs, and strong brand recognition. Their community-focused approach, including active involvement in local events and charitable initiatives, helps each location establish strong roots in their respective markets, fostering customer loyalty and sustainable growth.
  • 30+ years proven restaurant expertise
  • 638 locations nationwide market presence
  • Hand-cut steaks made from scratch
  • Legendary Food, Legendary Service brand
  • Strong community engagement focus
  • Established supply chain infrastructure

Location Analysis

Where Texas Roadhouse wins

Founded in 1993, Texas Roadhouse has grown to establish a widespread presence across multiple states, demonstrating significant market penetration and sustained growth over three decades. The brand maintains strong customer satisfaction ratings based on numerous customer reviews, indicating consistent service quality across its locations.

The franchise shows strategic geographic concentration, with notable presence throughout the Midwest and Northeast regions. Texas, Michigan, Pennsylvania, New York, and Ohio represent key markets for the brand. This robust footprint in these regions suggests successful targeting of areas with strong dining-out cultures and middle-income demographics. The brand's expansion pattern indicates a preference for suburban locations with high visibility, proximity to retail centers, and substantial population density within a 5-mile radius.

Significant growth opportunities exist in underserved markets, particularly in the Western and Southeastern regions, where states like Oregon, Colorado, and Louisiana currently have limited presence. The brand's success factors typically include locations with ample parking, sites exceeding 7,000 square feet, and areas with strong weekend dining traffic. Markets with limited steakhouse competition and strong consumer spending on casual dining continue to be prime targets for expansion, particularly in states showing positive economic growth and population increases.
Total US locations
638
Franchise units
56
Corporate locations
582
Avg. sq. footage
N/A

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Financial Analysis

The numbers behind Texas Roadhouse

Avg gross revenueN/A
Investment range$3,894,500 – $6,388,500
Investment midpoint$5,141,500
Brand fund0.3%
Royalty4%
Franchise fee$40,000
Min. net worth
Min. liquid capital
Texas Roadhouse represents a premium-tier investment opportunity with total capital requirements ranging from $3.9 million to $6.4 million, positioning it significantly above the full-service restaurant sub-sector average of $1.1-$2.3 million. This substantial investment reflects the brand's commitment to large-format dining experiences with extensive kitchen infrastructure, themed décor, and comprehensive operational systems.

The casual dining steakhouse segment faces ongoing challenges from changing consumer preferences toward fast-casual concepts and delivery-focused models. However, Texas Roadhouse's experiential dining approach with live entertainment and from-scratch preparation creates differentiation in an increasingly commoditized market.

With 638 units and 30+ years of operation since 1993, the franchise demonstrates mature system infrastructure and proven scalability. This extensive footprint indicates strong franchisor support systems, established supply chains, and refined operational protocols, though it may also suggest limited territory availability in prime markets.

The high investment threshold requires well-capitalized investors with substantial restaurant management experience, given the operational complexity of full-service steakhouse operations. Multi-unit development potential exists for qualified operators, though the significant per-unit investment limits rapid expansion capabilities.

Ideal candidates should possess $2+ million liquid capital with proven track records in hospitality management. The brand's community-focused positioning and made-from-scratch commitment require hands-on operational involvement. Prospective investors must thoroughly review the Franchise Disclosure Document and conduct comprehensive market analysis before proceeding.
Did you know? Did you know that bringing the legendary steaks, fall-off-the-bone ribs, and peanut-throwing atmosphere of Texas Roadhouse to your community requires a total investment between $3,894,500 and $6,388,500, which covers everything from the $40,000 franchise fee to building out that authentic roadhouse experience complete with line dancing and hand-cut steaks?

Financing partners

Vetted partners, tailored to franchisees

Your Franzy advisor can connect you with these partners later in the process — competitive rates, specialized in franchise financing.

FranFund

Lender

CRF USA

Nonprofit SBA lender; provides financing for franchise acquisitions, startups, and expansion.

Lender

First Bank of the Lake

Lender

Pension Pros

Lender

FDD Item 7

Initial investment range

$4M–$6M
Most common
$3,894,500
Minimum
$5,141,500
Midpoint
$6,388,500
Maximum

Per FDD Item 7, total initial investment ranges from $3,894,500 to $6,388,500. The midpoint $5,141,500 is what most franchisees report at signing — financing typically reduces cash-at-close by 80–90%. Knowing the investment range helps you plan confidently and ensure you're fully prepared to make the leap.

Growth over time

Franchise footprint

+4% YoY
8006404803201600
2017
2018
2019
2020
2021
2022
2023
2024
638 units open as of 2024 FDD+24 in last 12 mo

2024 Franchise Disclosure

FDD documents

Below are items 2, 3, 4, 7, 11 and 19 for Texas Roadhouse's 2024 FDD. The complete FDD is delivered to you directly by the franchisor, per the FTC Franchise Rule.

Estimated initial investment
FDD Item 7 · PDF
Financial performance representations
FDD Item 19 · PDF
Members-only items
Executive team
FDD Item 2 · PDF
Litigation
FDD Item 3 · PDF
Bankruptcy
FDD Item 4 · PDF
Franchisor assistance
FDD Item 11 · PDF
Members only
Unlock the 2024 FDD

Connect to download Items 2, 3, 4, and 11 — direct from the franchisor.

Buyer FAQs

Frequently asked questions

The initial investment for a Texas Roadhouse franchise typically ranges between $3,894,500.00 and $6,388,500.00. This includes the franchise fee, equipment, real estate, and other startup costs. To get a detailed breakdown and better understand the financial requirements, we recommend scheduling a call with the Franzy team. We'll walk you through the specifics and answer any questions you might have. For more detailed information, refer to the financial sections of the FDD.

Disclaimer. The information provided on this page is based on the latest Franchise Disclosure Document (FDD) that is publicly available and that we have on record, which was issued in 2024. This information is for informational purposes only and is not intended to constitute legal, financial, or business advice. We make no guarantees or claims regarding the completeness or accuracy. For the most current and detailed information, we recommend consulting the franchisor directly for the most recent FDD and regarding any questions that you may have about the information provided.

Texas Roadhouse
Texas Roadhouse
N/A avg revenue · 56+ US franchises

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