Tested, Proven, And Growing: The Motley Fool’s Roadhouse To Riches

texas logoTexas Roadhouse, the steakhouse franchise, has been rounding up sales as it grows out its footprint, according to the Motley Fool in a recent Top Franchises post on Nasdaq.com.

Given the strong presence Sintel Systems has in the retail, restaurant and service industries’ point of sale marketplace, we share these service sector growth trends with our customers and franchise hopefuls looking for key insights and opportunities in order to help them make the best decisions from the very beginning.

Here are the highlights of the Motley Fool’s post, “Top Franchises: Investing in Texas Roadhouse”:

• Texas Roadhouse looks for proven experience in running restaurants, however, the Kentucky-based steakhouse chain also seeks only well-heeled franchisees with at lease $3 million in liquidity, a measure of the ease with which the potential franchisee can convert assets into cash, and a minimum net worth of at least $6 million.

• The Motley Fool also notes that the chain favors franchisees who want to operate more than a single Texas Roadhouse restaurant.

• Currently, Texas Roadhouse operates 433 locations in 49 states and three foreign countries. It will open 25 company-owned restaurants in 2014. Seventy-five restaurants are franchised, and the company’s franchise partners have committed to opening another five, with four of them being in foreign countries.

• The Motley Fool writes that Texas Roadhouse already has agreements in place to open more steakhouses in eight countries in the Middle East over the next 10 years (five are already operating), and last year it signed a franchise development agreement for the development of the concept in Taiwan over a five-year period.

• Texas Roadhouse, by the numbers:

Year Founded                                       1993

Systemwide Restaurants                      443

Company-Owned                                 358

Franchised                                            75

Capital Required                                   $200,000

Total Investment                                   $1.6-$3 million

Franchise Fee                                        $40,000

Avg. Check per Guest                           $15.80

Avg. No. Tables                                      57 to 68

Avg. No. Guests                                     245 to 291 guests, including 15 bar seats

Typical Restaurant Size                         6,700 to 7,500 square feet

• The Motley Fools says that while Texas Roadhouse has enjoyed an 8% compounded rate of growth in revenues over the past five years, last year they were up 11% from 2012. The chain has proved itself to be one of the most popular steakhouse destinations in the country, second only to The Capital Grille, operated by Darden Restaurants, which also runs the Longhorn Steakhouse.

• The post notes that according to market researcher Technomic, the top 10 steakhouses in the U.S. generated over $8 billion in sales in 2013, an average 7% increase, that led them to increase their footprint by 6%. The researchers were also quoted in the post saying that while the top full-service chains posted just a 2.4% increase in U.S. sales last year, the steakhouse segment surged some 6.2%.

• “But it’s not as if it’s without risk,” warns the Motley Fool. “Restaurants do close, the economy can weaken once more, and beef prices today are at record levels.”

Read the Motley Fool’s full Nasdaq.com post here.

For more insights into the restaurant industry’s performance and trends, check out our related posts, Frozen Yogurt Is Hot, Hot, Hot, Growth Investors Likely To Get In Line For Shake Shack IPO, and The Top 12 Franchises, Based Upon Average Annual Single-Store Sales.

Sintel is the only full-service, direct-to-user point of sale provider — no resellers, no middleman. From software development to franchise incubator to ongoing support, part of Sintel’s commitment to our customers and industry is to share information on how to achieve success.

Before you make your franchise move, consider calling Sintel Systems for a free phone consultation to help weigh and understand your options. We serve as a franchise incubator for clients across the retail, restaurant and service industries, forming lasting partnerships with our clients that you simply can’t get from a reseller.

If you are interested in learning more about Sintel’s point of sale (POS) systems and how our knowledge and support can impact your future success, call us for a complimentary phone consultation.

Sintel Systems is the only direct to end user full-service provider of tailored point of sale systems across retail, restaurant and service industries, including frozen yogurt shopspizzeriassushi restaurantscafés and retail stores.

As a single source for business solutions, our experienced, knowledgeable team negotiates the complex POS landscape for you to enable you to find the right POS system for your business and budget. Hardware – Software – Support

Questions or Comments: Contact us 855-POS-SALES www.SintelSystems.com

Leave a comment