Texas Roadhouse is Reportedly Testing the First-Party Delivery Waters
Texas Roadhouse begins testing first-party delivery as part of digital kitchen rollout.
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Texas Roadhouse is reportedly piloting first-party delivery at select locations to assess its potential value, shifting from its traditional anti-delivery stance. The initiative is intended to remain margin neutral with consistent menu pricing for delivery. Analysts suggest this model could unlock new revenue streams for the brand in the future.
Why It Matters
This may indicate an adjustment in unit economics for Texas Roadhouse, potentially affecting future franchisee profitability and territory dynamics if first-party delivery expands across the system.
Texas Roadhouse is reportedly testing first-party delivery services at select locations, a significant shift for the family dining chain that has historically been resistant to delivery methods. The initiative comes as part of an effort to evaluate the potential benefits of direct delivery alongside a systemwide rollout of their digital kitchen capabilities. Notable for its focus on to-go orders, Texas Roadhouse has made substantial investments in infrastructure, including pickup windows and technology, prioritizing customer experience during pickup over traditional delivery.
According to Deutsche Bank equity research analyst Lauren Silberman, Texas Roadhouse has previously adopted a very selective approach to third-party delivery, offering it solely in specific situations like a restaurant in New Rochelle, New York. The current pilot project uses third-party app support from DoorDash for white-label fulfillment, and pricing reflects in-restaurant rates, with a $5.50 delivery fee and tips being directed to providers to maintain margin neutrality.
Although Texas Roadhouse does not yet provide an official delivery service, some units have enabled DoorDash and Uber Eats pickups. Silberman has indicated that while the brand is not expected to pursue a nationwide rollout of first-party delivery in the near term due to strong growth in to-go orders, this pilot could lead to broader adoption in the future. This situation mirrors recent strategies by Darden, Olive Garden’s parent company, which found success with a similar first-party delivery model contributing to their sales.
