The Strategy Behind Texas Roadhouse’s Free Peanuts and Bread | WSJ (Level 1)

Texas Roadhouse is a very popular restaurant in the United States. In 2024, it became the biggest casual dining chain in the country. People love it because the food is good and cheap. Every meal comes with free fresh bread, sweet butter, and peanuts. The CEO, Jerry Morgan, says friendliness is very important. The restaurant has a fun, country music style. Guests can buy a steak, two side dishes, and free bread for only $19. Customers can choose different sizes of steak. This helps them save money. Right now, beef is getting more expensive. Beef is half of the food the restaurant buys. To fix this, Texas Roadhouse is raising prices a little bit. However, they are not making the food smaller. They also save money by turning off lights when they do not need them. In the future, the company wants to open many more restaurants.