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Texas Roadhouse has been one of the final bastions of the anti-delivery movement
It’s elected instead to focus on to-go, investing in infrastructure, from pickup windows to technology. Late CEO Kent Taylor once told investors he encouraged competitors “to do as much delivery as they can so they can deliver lukewarm food to their people that order it.” But could Texas Rodhouse be testing the waters? According to Deutsche Bank, the steakhouse chain has quietly started testing first-party delivery at a few locations.
It’s part of Texas Roadhouse’s aim to assess the channel’s potential incrementality following a systemwide rollout of its digital kitchen. Menu prices for delivery are reportedly consistent with in-restaurant menu prices. A $5.50 delivery fee and tip are passed through to the provider in an effort to stay margin neutral.