Roadhouse Sees Opportunities

KEY BISCANE, FL-Texas Roadhouse executives may be planning steady near-term growth for their chain of 221 low-priced steak restaurants, but that doesn’t mean they don’t have big plans. “We think we can go anywhere where Outback is,” said Scott Colosi, the Memphis-based company’s chief financial officer, of its 915-unit competitor. “Our pipeline from a real estate perspective has never been stronger.”

Colosi and, G.J. Hart, chief executive officer, presented here at Wachovia Securities’ Consumer Growth Conference, where they spoke about Texas Roadhouse’s growth plans. While hitting the size of Outback may be a long-term plan, the company only has 26 to 28 new units in the works this year and l6% to 18% real estate expansion annually during the next few years.

About 90% of the company’s growth is in its existing markets, which are in mid-sized trade areas in 41 states. Executives are planning partnerships with local operators to add one-to-two new markets per year.