Texas Roadhouse Just Raised Menu Prices for Second Time in 6 Months

The popular restaurant Texas Roadhouse was built on delivering cheap steakhouse food. Recently, prices have been rising.

The CEO said on Thursday that the popular restaurant chain hiked menu pricing by 2.7% earlier this month during an earnings call. Following a 2.2% rise in April, the Kentucky-based firm has raised prices again this year.

CEO said the new rise was to balance increased labor costs, "including the impact of upcoming state-mandated wage increases."

Texas Roadhouse, like many steakhouses, faces rising meat expenses owing to decreased cow productivity. Although other food prices are falling, the business admitted that rising beef prices are reducing profitability.

To retain Texas Roadhouse's affordability, CEO stated he wants to be "careful," while considering hiking menu pricing. "I want us to be seen as a value concept, as always," stated.

The company's senior investor relations and financial analysis director called beef "the driving force of our expected inflation next year."

Despite such obstacles, Texas Roadhouse has maintained revenue and attendance in a slowing restaurant sector. Over $3.4 billion in sales were recorded this year, up 15% from previous year.

Texas Roadhouse had more foot traffic than comparable full-service restaurants, according to Placer earlier last month.

The Chief Financial Officer claimed 12 additional restaurants would open by year's end and 15 in the first half of 2024. 

"The hospitality sector has always been full of difficulties," CEO stated on call.