Texas Roadhouse Franchise
Texas Roadhouse Franchise: You can own and run your own Texas Roadhouse because it is a franchise. Having a franchise is a lot of work and costs a lot of money, so you need to think carefully before investing.
Here is all the information About owning a Texas Roadhouse franchise that Anyone who wants To do so Should Know.
Texas Roadhouse is a family steakhouse with locations All over the United States that serves Southwestern food. The motto of Texas Roadhouse is “Legendary Food, Legendary Service.” This shows How they run their business.
Also check out the popular Texas Roadhouse Menu Prices:-
Texas Roadhouse Franchise Cost
Texas Roadhouse Franchise Cost: You probably already know that a Texas Roadhouse franchise can cost anywhere from $2 million To almost $5 million. When it comes to how much it costs to own a franchise, there is a wide range.
Look, a building’s design can cost anywhere between $95,000 and $200,000. Also, the equipment costs anywhere from $250,000 to $915,000, depending On whether you want to build a franchise from scratch or fix up an existing one.
Even though most people don’t think about it, licensing can also cost a lot of money.
Licenses to sell Alcohol can cost anywhere from $2,000 To $500,000. This is a big range. These are the most expensive parts Of building a Texas Roadhouse franchise.
However, some of these costs can be chosen by the investor, depending on whether they want to spend more money building a franchise or save money On some Ends. Here is how much a Texas Roadhouse franchise will cost you.
Texas Roadhouse Franchise Cost
| Franchise Fee | $40,000 |
| Leasehold / Building Improvements | Renovation: $605,000 to $1,500,000. New Build-out $1,500,000 to $3,000,000 |
| Architectural / Engineering / Site Evaluation | $95,000 – $200,000 |
| Builders Risk and OCP Insurance | $5,000 – $12,000 |
| Performance Bonds | Renovation: $12,000 – $25,000 New Buildout: $14,000 – $38,000 |
| Furniture, Decor, and Fixtures | $180,000 – $220,000 |
| Equipment | Renovation: $250,000 – $650,000 Build-out: $800,000 – $950,000 |
| Signs | $39,000 – $90,000 |
| Insurance | $40,000 – $80,000 |
| Initial Inventory | $38,500 – $62,000 |
| Supplies | $20,000 – $35,000 |
| Smallwares | $37,000 – $55,000 |
| Computer Hardware / Software; POS System/Network Cabling Fees | $55,000 – $75,000 |
| Marketing and Promotional Materials | $1,000 – $5,000 |
| Training Costs / Opening Assistance | $90,00 – $110,000 |
| Licenses, Permits, Incorporation | $7,000 – $80,000 |
| Liquor Licenses | $2,000 – $500,000 |
| Utility and Telephone Deposits | $5,000 – $50,000 |
| Other pre-opening costs not listed above | $130,000 – $255,000 |
| Additional Funds (3 months) | $442,000 – $641,500 |
| Total | Renovation: $2,093,500 to $4,685,500 New Build-out: $2,790,500 to $4,963,500 |
Initial Training Fee
The first training For Up To Five managers And the operating Principle is free For your first Restaurant.
For The second restaurant, On the other hand, the initial fee is $3,500 Per person, Which includes The cost of training And materials.
Open Crew Assistance
The franchise gives you access to trained people who can help you open a restaurant. Here, each representative has to pay for things like travel, lodging, food, supplies, and opening t-shirts.
Coordinators get $14 an hour, and trainers get $13 an hour, plus per diem And overtime pay. You will also need meat cutters, which cost at least $13 per hour.
Site Evaluation Fee
Texas Roadhouse offers One evaluation on-site, during which the restaurant chain will decide if the site needs more evaluations. If so, the evaluation will cost $500 plus The cost of getting there.
Construction Inspection Fee
The new restaurant will be inspected by Texas Roadhouse, and there is no extra charge for this. If there needs To be more than one inspection, it will cost $500 And that doesn’t include the cost of travel.
Texas Roadhouse Franchise Fees – Royalty Fee
A Texas Roadhouse franchise has a royalty fee of 4.0%.
How Much Does a Texas Roadhouse Franchise Owner Make?
Texas Roadhouse does not share financial information about how well their franchisees are doing.
Marketing and Promotional Texas Roadhouse Franchise Expenses
There is a marketing fund to which each franchisee must contribute.3% And 2.5% of their total gross sales.
Marketing funds are used to promote Texas Roadhouse across the country or in a certain area. But the local marketing fee is 2% of the total sales each month.
A marketing fee of.5% of gross sales is also charged. This is for marketing research as well as advertising and marketing materials.
Neither the marketing fund nor the marketing fee can be more than 3%. Both events happen on the 10th of each month.
Texas Roadhouse Financial Statements
Texas Roadhouse Annual Earnings: Income Statement
| (thousands of dollars) | |||
|---|---|---|---|
| December 29, 2020 | December 91, 2019 | December 25, 2018 | |
| Revenue | |||
| Restaurant and other sales | $ 2,380,177 | $ 2,734,177 | $ 2,437,115 |
| Franchise royalties and fees | $ 17,946 | $ 21,986 | $ 20,334 |
| Total Revenues | $ 2,398,123 | $ 2,756,163 | $ 2,457,499 |
| Costs and Expenses | |||
| Restaurant operating costs (excluding depreciation and amortization) | |||
| Food and Beverage | $ 780,646 | $ 883,357 | $ 795,300 |
| Labor | $ 875,764 | $ 905,614 | $ 793,384 |
| Rent | $ 54,401 | $ 52,531 | $ 48,791 |
| Other operating | $ 403,726 | $ 418,448 | $ 375,447 |
| Pre-opening | $ 20,099 | $ 20,156 | $ 19,051 |
| Depreciation and Amortization | $ 117,877 | $ 115,544 | $ 101,216 |
| Impairment and Closure, net | $ 2,263 | $ (899) | $ 278 |
| General and administrative | $ 119,503 | $ 149,389 | $ 136,163 |
| Total Costs and Expenses | $ 2,374,279 | $ 2,544,140 | $ 2,269,660 |
| Income from Operations | $ 23,844 | $ 212,023 | $ 187,789 |
| Interest Income (Expense), net | $ 4,091 | $ 1,514 | $ (591) |
| Equity income from investments in unconsolidated affiliates | $ (500) | $ 378 | $ 1,353 |
| Income before taxes | $ 19,253 | $213,915 | $ 188,551 |
| Provision for income taxes | — | $ 32,397 | $ 24,257 |
| Net income including noncontrolling interests | $ 34,925 | $ 181,518 | $ 164,294 |
| Less: Net income attributable to noncontrolling interests | $ 3,670 | $ 7,066 | $ 6,069 |
| Net income attributable to Texas Roadhouse Inc., | $ 31,255 | $ 174,452 | $ 158,255 |
| Other comprehensive income (loss), net of tax | |||
| Basic | — | $ 50,751,185 | $ 43,421,715 |
| Diluted | — | $ 50,751,185 | $ 43,421,715 |
| Foreign currency translation adjustment | 119 | 3 | (189) |
| Total comprehensive income | $ 31,374 | $ 174,455 | $ 158,036 |
| Net income per common share attributable to Texas Roadhouse, Inc. and subsidiaries | |||
| Basic | $0.45 | $2.47 | $2.21 |
| Diluted | $0.45 | $2.46 | $2.20 |
| Weighted average shares outstanding | |||
| Basic | 69.438 | 70,509 | 71,467 |
| Diluted | 69.893 | 70,916 | 71,964 |
| Cash dividends declared per share | $ 0.36 | $ 1.20 | $ 1.00 |
Texas Roadhouse Cashflow Statements
Texas Roadhouse Annual Cash Flows Statement
| (thousands of dollars) | |||
|---|---|---|---|
| December 29, 2020 | December 31, 2019 | December 25, 2018 | |
| Cash flows from operating activities | |||
| Net income including noncontrolling interests | $ 34,925 | $ 181,518 | $ 164,294 |
| Adjustments to reconcile net income to net cash provided by operating activities | |||
| Depreciation and amortization | 117,877 | 115,544 | 101,216 |
| Deferred income taxes | $ (19,932) | 6,335 | 12,319 |
| Loss on disposition of assets | $ 3,144 | 5,885 | 6,008 |
| Impairment and closure costs | $ 2,290 | (1,283) | 105 |
| Contribution from the executive officer | — | —- | 1,000 |
| Equity income from investments in unconsolidated affiliates | 500 | (378) | (1,353) |
| Distributions of income received from investments in unconsolidated affiliates | 329 | 1,837 | 656 |
| Provision for doubtful accounts | (1) | (22) | (9) |
| Share-based compensation expense | 29,431 | 35,500 | 33,983 |
| Changes in operating working capital | |||
| Changes in other operating assets and liabilities | |||
| Receivables | 1,058 | (5,774) | (15,597) |
| Inventories | (2,017) | (1,414) | (2,495) |
| Prepaid expenses | (2,133) | (2,049) | (3,023) |
| Other assets | (12,698) | (12,823) | (4,290) |
| Accounts payable | 490 | 407 | 8,882 |
| Deferred revenue – gift cards | 23,458 | 16,991 | 35,519 |
| Accrued wages | 12,283 | 5,540 | 4,481 |
| Prepaid income taxes and income taxes payable | 372 | 5,554 | (8,581) |
| Accrued taxes and liabilities | (5,700) | 5,802 | 2,634 |
| Other accrued liabilities | 4,099 | (3,773) | 7,569 |
| Operating lease right of use assets and lease liabilities | 4,635 | 5,826 | —– |
| Deferred rent | — | —- | 5,938 |
| Other liabilities | 38,028 | 15,075 | 3,612 |
| Net cash provided by operating activities | 230,438 | 374,298 | 352,868 |
| Cash flows from investing activities | |||
| Capital expenditures – property and equipment | (154,401) | (214,340) | (155,980) |
| Acquisition of franchise restaurants, net of cash acquired | (10,580) | (1,536) | (2,165) |
| Proceeds from the sale of property and equipment | 1,709 | 1,056 | —- |
| Net cash used in investing activities | (161,105) | (214,820) | (158,145) |
| Proceeds from sale-leaseback transactions | 2,167 | — | — |
| Net cash used for investing activities | (—) | (47,857) | (218,045) |
| Cash flows from financing activities | |||
| Debt issuance costs | (641) | —- | —– |
| Proceeds from noncontrolling interest contributions | 133 | —– | 2,551 |
| Distributions to noncontrolling interest holders | (3,432) | (6,357) | (5,746) |
| Acquisition of noncontrolling interest | — | (743) | (122) |
| Proceeds from restricted stock and other deposits, net | (823) | 62 | 418 |
| Indirect repurchase of shares for minimum tax withholdings | (11,684) | (12,471) | (14,067) |
| Principal payments on long-term debt | — | —- | (50,000) |
| Proceeds from the exercise of stock options | (—) | —- | —– |
| Repurchase of shares of common stock | (12,621) | (139,849) | —- |
| Dividends paid to shareholders | (24,989) | (102,366) | (68,550) |
| Net cash used in financing activities | (185,943) | (261,724) | (135,516) |
| (decrease) Net increase in cash and cash equivalents | 255,276 | (102,246) | 59,207 |
| Cash and cash equivalents, the beginning of the period | 107,879 | $ 210,125 | $ 150,918 |
| Cash and cash equivalents, end of period | $ 363,155 | $ 107,879 | $ 210,125 |
| Supplemental disclosures of cash flow information | |||
| Interest paid, net of amounts capitalized | $ 3,890 | $ 738 | $ 896 |
| Income taxes paid | $ 3,776 | $ 20,440 | $ 20,519 |
| Capital expenditures included in current liabilities | $ 14,808 | $ 15,416 | $ 7,332 |
The cash flow statement for Texas Roadhouse is shown above. At the start of 2019, Texas Roadhouse had a Net income of $ 34 million.
At the end of the year, Texas Roadhouse Had $363 million in cash and other things that could be used as cash. The amount of cash And cash Equivalents has gone up by about $256 million since the beginning of the year.
And because of this, Texas Roadhouse makes money every year And has a lot of cash on hand. Most of their cash comes from running their business And most of it goes out The door when they invest and finance.
Texas Roadhouse Franchise Benefits And Requirements
This is a Very secret piece of information. Because this company didn’t Say anything about it. You won’t find out about this until you apply for the franchise.
All of this will be talked About once the basic requirements have been met. Here are the steps You need to take.
How To Apply For Texas Roadhouse Franchise
You can fill out an application for this franchise On their website. There, you’ll get a form to fill out, and Then someone from the company will get in touch with you.
Texas Roadhouse Franchise Contact Details
Texas Roadhouse Franchise Website www.texasroadhouse.com
About – Texas Roadhouse
Texas Roadhouse first opened in 1993 in Clarksville, Indiana. Kent Taylor Started this company. He lived in Colorado And worked in many places before starting this company.
His dream was to Open a Restaurant with a Colorado Theme. The governor Of Kentucky gave him money to help him realize his dream.
All of this led To the opening of Buckhead Hickory Grill in 1991, But problems with the partnership led to Everything falling apart.
Taylor had a hard time finding an investor to help get Texas Roadhouse Off the ground. But after repeated failures, he finally found one.
Taylor Dr. Talked to John Rhodes to give money. By then the idea was proven to work. In the same year, 1993, Another Texas Roadhouse opened in Gainesville, Florida.
During the 1990s, there was a period when the Chain grew rapidly. By the end of 1999, There were Already 67 Texas Roadhouse restaurants in the US.
In 2004, Texas Roadhouse was released. In 2011, the company opened its first restaurant outside the United States. It was in Dubai, United Arab Emirates.
At the moment, there are 611 Texas Roadhouse restaurants in locations such as The United States, South Korea, China, Mexico, Taiwan, the Philippines, Qatar, the United Arab Emirates, Bahrain, Kuwait And Saudi Arabia.
About 65,000 people work for Texas Roadhouse around the world. The company’s main office is currently in Louisville, Kentucky.
FAQs – Texas Roadhouse Franchise
Does Texas Roadhouse sell franchises?
There are still some Texas Roadhouse Steakhouse restaurant franchise locations available despite The chain’s 360 franchise sites. Don’t pass up The chance to join the company right away.
How much does it cost to get a Texas Roadhouse franchise?
What is The initial investment? Texas Roadhouse’s franchise fee is $40,000. To buy a Texas Roadhouse, you need to Spend between $1.6 million and $3 million.
Is Texas Roadhouse a good investment?
The stock has a great track record of beating our earnings consensus estimate, as it hasn’t done so in any Of the last four quarters.
In its last earnings report, on October 27, 2022, Texas Roadhouse Said that its earnings per share were $0.93, which was higher than the average estimate of $0.87.
Are Texas Roadhouse restaurants franchised?
After all, you can own and run your own Texas Roadhouse if you buy a franchise.
Who owns the Texas Roadhouse franchise?
In Clarksville, Indiana, Kent Taylor established the Company in 1993 by opening the first Texas Roadhouse. Three concepts have now been added To the Company.
