Why Texas Roadhouse won't offer delivery

Delivery of restaurant meals is all the rage, but don't look to have rattlesnake bites or a cactus blossom brought to your door.

Texas Roadhouse Inc. CEO Kent Taylor says the company doesn't need or want to add delivery service, according to a report in Nation's Restaurant News.

"We encourage all our competitors to do as much delivery as they can so they can deliver lukewarm food to the people who order it," he said on the company’s earnings call on Monday. "We’ll stick to our guns on this."

NRN notes that Louisville-based Texas Roadhouse's consistent sales and traffic growth mean the chain doesn't have to push delivery to regain customers.

But company executives also say that delivery hurts the product, according to the report. And they say that delivery orders come during peak hours when the company is busy, which could hurt in-store operations.

"Those people are going to call between 6 and 8 when we're busiest, and our kitchens are already at pretty high capacity," company president Scott Colosi said during the call. "I'm not sure operationally it will be the best thing for us to be advertising delivery."

Meanwhile, NRN reports, Texas Roadhouse (Nasdaq: TXRH) is not avoiding online ordering and mobile app development, both of which are increasingly popular among restaurant executives.

Louisville Business First


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