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Texas Roadhouse: Competing on value

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Value remains a draw for Texas Roadhouse Inc., known for its hand-cut steaks, ribs, signature bread and sides under the trademark “Legendary Food. Legendary Service.”

The Louisville, Ky.-based casual-dining concept, with more than 530 restaurants in 49 states, cultivates a vibrant atmosphere with its jukebox country music and server line dancing.

Related: Top brands ranked by customer loyalty: Consumer Picks 2017

After Consumer Reports in 2012 cited Texas Roadhouse as the noisiest restaurant chain in the nation, Kent Taylor, founder and CEO, issued a statement: “We are proud to be loud.” The brand is still making noise, providing family-oriented value options in a competitive segment.

Scott M. Colosi, president and CFO, said in a July earnings call that while pricing power isn’t in the brand’s DNA, it has value on its side.

Related: Papa Murphy's: Focusing on freshness

“The power that we do have is to keep our prices very aggressive, and we just don’t take the next day sales for granted,” he said. “And certainly, we see how tough it can be in the restaurant business, especially casual dining, when you let your prices get a little bit away from you.”

Colosi said Texas Roadhouse managers know how to maintain traffic and customer loyalty. The brand maintains an email “Roadie” database for coupons and birthday and anniversary offers.

Contact Ron Ruggless at [email protected]

Follow him on Twitter: @RonRuggless

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