Texas Roadhouse Is Raising Its Prices Once Again. Here's By How Much

It's no secret that many of America's most popular restaurants are raising prices. And, while unhappy customers have driven many chains to offer discounts, dining out is still costlier than it once was. Iconic steakhouse Texas Roadhouse is no exception. In a call with investors on Thursday, executives announced that the chain had raised prices (via Seeking Alpha).

This is the fourth time Texas Roadhouse has raised its prices in the past two years. However, compared to previous price hikes — 2.2% last spring, 2.7% in October 2023, and 2.2% in April of the same year — this one is minimal. Customers can expect to see menu items go up by just .9%.

It seems that the .9% number is an average: some prices went up by a lot more. Per Eat This, Not That!, one New Jersey Location is now serving a 12-ounce New York strip for $23.99, up $2 since September. The 6-ounce sirloin, Texas Roadhouse's cheapest cut, is now $14.49 — a 50-cent increase. However, compared to other chains' increases, like the infamous $19 Big Mac meal, the under-$15 steak is still a steal.

Industry insiders have been expecting to see the Texas Roadhouse raise prices, but the .9% number comes as a surprise. During a conference call in July, executives announced that the chain would raise prices by 2.7% in October. But since then, things have been looking up for the company.

For the past few years, the beef industry has been struggling: limited supply put executives on edge. "We're obviously expecting to feel more pressure from [beef prices] in the back half of the year," Michael Bailen, Head of Investor Relations, explained in the company's July earnings call. However, the beef industry did better than expected in the third quarter of the year. On Thursday, executives explained that the .9% increase was due to the lower-than-expected prices and cooling inflation.

Customers hoping for sales or promotions will be disappointed, though. "We don't do any promotions,"  Bailen told investors, then clarified, "We do have our early dime. You can come in early when the store first opens and there is a discount on a handful of the items." But despite creeping price hikes and lack of promotions, customers have been flocking to the restaurant. Texas Roadhouse saw 5.9% traffic growth in the last quarter, and revenue is up a substantial 13.5% since last year. Even compared to rival steakhouse chains, business is booming. As Bailen explained, "We feel very good about where our prices are and the value that we offer." It seems restaurantgoers agree.