The Reason Texas Roadhouse Steaks Are So Cheap

Texas Roadhouse is a popular choice among the nation's many chain steakhouse options, and part of that is its affordability. Keeping prices down, especially amid a seemingly never-ending era of high beef prices, is a multi-pronged effort that goes beyond the meat — though that is part of the story.

Texas Roadhouse exclusively uses USDA Choice beef, a category that costs significantly less than the better-marbled USDA Prime, with only a minimal sacrifice in quality. Unlike other chains, Texas Roadhouse also butchers all of its beef on-site at every restaurant, because uncut sides of beef are cheaper per pound than pre-cut steaks. And, as some disappointed fans have noticed, Texas Roadhouse doesn't serve lunch on weekdays, significantly reducing operating costs.

The sum of these cost control measures is the chain's ability to sell food at lower prices than its rivals. For instance, in Austin, Texas, a Texas Roadhouse New York Strip steak costs $23.99, according to the US Sun. The same steak at a nearby Outback Steakhouse (which also uses USDA Choice) costs $26.49 — over 10% more. And while the steak costs $1 more at a Columbus, Ohio, Texas Roadhouse location, it was still less costly than the Columbus Outback's version.

Texas Roadhouse's careful eye on costs doesn't just save customers money; it also helps provide a better experience. People say you should look for USDA Prime beef at steakhouses, and marbling certainly can be a big part of a steak's flavor. But that's the only thing those grades measure, and a flavorful steak has many other variables, including but not limited to the cattle breed, its diet, the cooking technique, and the meat's texture.

One of the ways Texas Roadhouse can hit the mark on texture without using the priciest beef has to do with the in-house butcher. Although it ultimately saves money, Texas Roadhouse hand-cutting each one of its steaks also means a better texture when cooked. Mass-produced, pre-packaged steaks cannot touch an expert butcher's years of experience in cutting and trimming meat, and Texas Roadhouse butchers cut an estimated $1 million worth of beef per store every year.

Finally, the reason Texas Roadhouse only serves lunch on weekends, according to its founder, is to keep the best workers focused on the best dinner service possible, rather than overextending themselves for unpopular lunch service — when was the last time you went to a steakhouse at 11 a.m. on a Tuesday? But there's another massive cost-saver here: Lack of weekday lunch means you won't find a Texas Roadhouse in a central business district, where real estate costs can be massive. Saving money on that and more means the customer saves too.