Texas Roadhouse is testing delivery, report says

Texas Roadhouse is conducting a "micro-test" of first-party delivery at several locations, marking a significant shift for the company, which has historically resisted delivery options. The test involves restaurants in diverse settings, including urban, suburban, and tourist areas, and is distinct from existing delivery operations in denser markets like New Rochelle, New York. Customers can place orders through Texas Roadhouse's website, and deliveries are fulfilled by DoorDash, with prices mirroring in-store offerings plus a $5.50 delivery fee.

Travis Doster, the chief communications officer, stated, "This micro-test is really just a fact-finding mission to get better educated on delivery." The company, headquartered in Louisville, has traditionally maintained its stance against delivery, aligning with the views of its late founder, Kent Taylor, who critiqued the quality of delivered food. Despite this resistance, Texas Roadhouse has been one of the fastest-growing restaurant chains in the U.S., achieving the title of the largest casual-dining chain by sales last year, with same-store sales growth averaging 5.8% over the past four quarters and reaching 7.1% in the first quarter.

Analysts speculate that while the delivery test indicates a shift in strategy, a nationwide rollout is unlikely in the near term due to the company's recent strong performance without delivery services. Notably, Texas Roadhouse's to-go sales are experiencing substantial growth, accounting for 14.6% of weekly sales last quarter, which amounts to over $25,000 per store, the highest since the pandemic began. The brand has also implemented a "digital kitchen" initiative to facilitate off-premise business.