Texas Roadhouse says it will charge diners more for steak dinners this year, but the restaurant is betting that faster, smoother service will keep customers coming back.
The chain has been investing in technologies meant to increase accuracy and decrease wait time, making eating at Texas Roadhouse a frictionless experience.
Since the pandemic, diners have been growing increasingly frustrated with the poor service many restaurants provide. Long wait times, QR code menus, and staff who appear more concerned with big spenders than the average table, are among diners’ chief complaints.
“We gave restaurants a pass for many, many months, and I think we are at a place where people really miss the human touch and the little details,” Louisville, Kentucky-based chef Ed Lee told The New York Times.
Will Guidara, author of “Unreasonable Hospitality,” agrees, telling the outlet, “great food in the absence of hospitality is not a great value.”
In an era where restaurants of all price points are focused on value perception, Texas Roadhouse’s gamble on improved service over bottom-floor prices may actually pay off.
Texas Roadhouse is raising its prices
As far as steakhouses go, Texas Roadhouse has always been incredibly affordable.
When the first location opened its doors back in 1993, founder Kent Taylor aimed to provide diners with fresh, handmade food at a great price. Some 500 locations later, the chain is still delivering on that promise with many of its entrees sitting between the $20-$30 range.
As beef prices have risen over the last few years, Texas Roadhouse, like many restaurants with beef-forward menus, has struggled to adjust.
Initially, the restaurant kept its prices low, worrying that raising them in an effort to keep their margins healthy would drive customers away. But by the end of 2025, with stocks falling around 14% over the course of the year, the chain finally bumped them up by 1.7%.
Fortunately, diners proved remarkably resilient to the price hike. Data from Placer.ai show that in Q4 FY2025 (the same quarter in which the initial price bumps were implemented), Texas Roadhouse saw a 13% increase in foot traffic.
Now, the steakhouse chain is hoping that pattern holds as it executes a series of additional price bumps.
In Q1 FY2026, Texas Roadhouse raised prices by an additional 3.1%. Mike Lenihan, the chain’s chief financial officer, told investors that the increases will continue throughout the rest of the year, going up 3.6% in Q2 and Q3 and 1.9%+ in Q4.
”We believe very firmly in our conservative approach to how we look at pricing, Texas Roadhouse CEO Jerry Morgan told investors during the company’s Q1 FY2026 earnings call. “I believe that we are a little lower than most of our steak competition from that standpoint… We just try to make sure that we feel good about the pricing that we have to charge our consumer.”
“If you’re paying more, are we doing a better job?” he continued. “I think that’s ultimately what we focus on.”
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Texas Roadhouse is doubling down on customer service
Texas Roadhouse has long had a reputation for quality service.
In April, Datassential named Texas Roadhouse “America’s Best Restaurant Experience” for the second year in a row, rewarding the chain for its great service, ambiance, and overall guest experience.
Despite that recognition, the chain isn’t content to plateau, and is constantly seeking out new ways to elevate the customer experience — especially as prices climb.
“I believe the consumer knows that we have to charge a little bit more because of beef and everything going on in the world,” Morgan told investors. “What they expect is at least the same service and hospitality, if not better, or a little more energy, focus, or hustle to serve them when we’re forced to do some of the things that we’ve had to do from a pricing standpoint.”
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To that end, the chain is rolling out two new types of technology designed to improve overall customer experience.
The first is in the kitchens. A new ordering system enables chefs to fill a higher volume of to-go orders without negatively impacting the dine-in experience. Morgan says this updated process has resulted in positive feedback from location operators and has improved overall wait times for both in-house and at-home diners.
The second technology upgrade is a handheld device system used by servers at the table. The devices allow servers to place orders tableside, rather than having to return to a fixed POS. According to Morgan, the devices are more efficient and have resulted in higher order accuracy, improving customer satisfaction.
“Technology is designed to help enhance the guest experience, and that’s what we’re seeing,” Morgan told investors. “It’s working. It’s working really well from the guest experience and from our employee experience and helping our managers run their business more efficiently. All of it together is definitely helpful.”
Diners increasingly crave human connection
Texas Roadhouse may be heavily investing in technology, but the restaurant hasn’t signaled plans to do away with human-driven hospitality. It seems to understand that while diners are looking for smooth, efficient service, they also crave human connection when dining outside the home.
A recent survey by employee experience technology company Harri found that nearly one-third (30%) of diners avoid restaurants they find “too automated.” Additionally, 78% of people say that a “warm welcome” at a restaurant should always be human-led, and a full 90% think the best way to keep customers happy is to have them interact with humans, not technologies.
“Robots are out, people are in,” Harri CEO Luke Fryer said. “Diners know automation just can’t deliver the service they want. AI has a role, but it should be fixing manager headaches like compliance and inefficiencies so staff can shine.”
Diners aren’t coming to restaurants like Texas Roadhouse to admire efficient technologies, especially as prices continue to climb. What they want instead is reliable food, service that feels personal, and a hassle-free experience.
Texas Roadhouse’s future success depends on striking the right balance between people and technology. If they can get that right, guests will have a consistently positive experience that will keep them coming back, even if beef prices continue to nudge check totals up.
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