Texas Roadhouse Franchise Cost, Opportunities, Profits, & Review

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 Franchise

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.

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.

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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 between.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 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 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 non controlling interest (743) (122)
Proceeds from restricted stock and other deposits, net (823) 62 418
Indirect repurchase of shares for minimum tax witholdings  (11,684) (12,471) (14,067)
Principal payments on long-term debt —- (50,000)
Proceeds from 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, beginning of 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
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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.

Texas Roadhouse Franchise Cost – Video

 

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.

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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 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.

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