Texas Roadhouse Managing Partner Salary
Texas Roadhouse managing partner salaries average $48,510 annually, which is 38% below the national median.
Texas Roadhouse is a restaurant chain renowned for its affordably priced steaks and ability to hedge commodity prices to boost traffic and profits. It competes in the casual dining steakhouse segment of the restaurant industry, an increasingly competitive space where numerous establishments vie for customers’ attention.
Texas Roadhouse stands out among competitors by pricing its menu according to region in order to drive traffic and spread fixed costs more evenly across locations. This strategy has enabled the company to maintain EBITDA margins of 12% in recent years – higher than Logan’s Roadhouse’s 5-8% and Outback Steakhouse’s 8-10%.
Texas Roadhouse employs a barbell menu pricing strategy that offers below market prices on high margin items and slightly higher prices for premium end items. This allows Texas Roadhouse to compete with steakhouses in more expensive geographies while still protecting its bar food margins.
In addition to their base pay, Texas Roadhouse managing partners are entitled to an additional performance bonus of 10% of their store’s net income. This is an impressive incentive for any new general manager.
Employees must pass a series of tests and interviews in order to be hired. The company provides an employee benefit package, consisting of a 401(k) plan, health insurance and paid time off. Furthermore, the culture at this workplace encourages teamwork and customer service which keeps staff motivated and contented.
About the Company
Texas Roadhouse is a popular chain of casual dining steakhouses headquartered in Louisville, Kentucky. Founded by Kent Taylor and owned by W. Hess, it’s one of America’s largest restaurants with more than 451 locations. With such an established brand name and excellent reputation for quality steaks, ribs, and seafood dishes, Texas Roadhouse enjoys great success across many different states.
Managers are an essential element of the company, held accountable for the success of their locations. In return for their efforts, they receive a base salary of $45,000 plus performance bonuses that could reach as much as 10% of their restaurant’s net income.
Managers in Outback Steakhouse receive significantly more compensation than general managers at their competitors, which has created an ownership mentality in staffing decisions, operations and business decisions. Outback Steakhouse pioneered this program for casual dining steakhouses.
Outback was the pioneer of the managing partnership program, creating a system that rewards and retains top performers. This strategy has proven successful for the company, which now operates over 3,400 restaurants around the world.
Texas Roadhouse’s management program is a hybrid between an owner-managed franchise and company-owned locations. It includes a buy-in fee for general managers that can be forgiven after five years of service or used as loan collateral. As such, managers have an incentive to improve operational efficiency and profitability at their location; especially since most are company-owned locations where most profits go back into corporate coffers.