Nation's Restaurant News On the Go #98
Nation's Restaurant News
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In the pocket
Happy week before Thanksgiving, readers. Editor in chief Sam Oches here.
I want to tell you about a place I love to be: in the pocket. The pocket is not a physical place, but more a state of being. It’s hard to put into words what exactly it is — more like you know it when you feel it. Like the musical equivalent of Zen.
I’ve been playing the drums now for more than 20 years, in and out of a number of bands. The pocket is what everyone in a band — particularly the drummer — is trying to find. It’s that moment when the whole group is locked into the same tempo and dynamics, when all of the instruments and vocals meld effortlessly into one unified wall of sound. In setting the tempo, the drummer is responsible for creating the pocket and holding it together as each musician layers their own craft on top of the beat.
Here's the best thing about the pocket: When you’re in it, you have a sort of superpower where it feels like nothing can go wrong. You can lose yourself to the music and play out to your fullest capability rather than be overly focused on the details of what you’re doing. It’s a sort of out-of-body experience that allows you to take more chances and have way more fun.
In short, your band is at its absolute best when it’s in the pocket.
All of this was on my mind immediately after I left the Texas Roadhouse support center in Louisville, Ky., where I joined executive editor Alicia Kelso to conduct research for this month’s Brand Icon package. Alicia and I set out to uncover the secret to Texas Roadhouse’s remarkable success (sales and traffic growth each quarter this year; 13.8% same-store sales growth in 2023). We had a chance to tour the support center, interview several leaders, and even attend the annual Founders Day celebration recognizing late founder Kent Taylor.
And the thought occurred to me: Texas Roadhouse lives in the pocket. There is incredible synchronization throughout the system. All of the Roadies in the support center were in lockstep as far as the brand’s mission and values, and it seems to have given Texas Roadhouse a sort of superpower as it charges up the ranks of largest restaurant brands in America.
Here's something I’ve learned about finding the pocket, at least musically speaking: Talent alone will not get you there. Rather, building relationships with your bandmates and spending time together honing your craft play important roles as well. This is clearly where Texas Roadhouse excels: Most of the Roadies I met had been with the company for many years. Some for decades, and some for the entirety of their careers. They’re not a collection of foodservice professionals working for the same employer; rather, they’re a part of a unified family with a shared objective and ideals.
Kent Taylor clearly set the tempo for something special at Texas Roadhouse. And as the company continues to honor his legacy by making beautiful music together, NRN is proud to name it the 2024 Brand Icon. Scroll down to access plenty more content on how Texas Roadhouse marches to the beat of its own drum.
Texas Roadhouse leans into ‘legendary’
Hundreds of people crowd into a spacious, windowless, industrial room in Louisville, Ky., that normally plays host to church youth events. Most of the guests are adorned in red, white, and blue, and American flag bunting hangs from a second-floor balcony.
One might mistake the event for a July Fourth celebration, but it’s Sept. 27, 2024 — Founder’s Day at Texas Roadhouse, the day the company celebrates the life of late founder Kent Taylor, left. Rain forced the event into this backup location — organizers initially planned to host in a baseball stadium — but the mood is no less celebratory, with plenty of clapping, hollering, and laughing as speakers and musicians grace the stage.
Taylor is everywhere in the celebration: His caricature, like one drawn at an amusement-park kiosk, looms over the crowd of hundreds of company employees — aka “Roadies” — donning his signature cowboy hat and the dual braids of his close friend, musician Willie Nelson. Stories of his outsized personality and contributions to the company and community flow from every speaker who takes the stage.
An equal mix of serendipity and intrigue brought president Gina Tobin to Texas Roadhouse decades ago
To understand how Texas Roadhouse achieves consistent sales and traffic growth — regardless of the macroeconomic environment — is to understand its culture. The chain strives to convey an “energetic, rowdy, enthusiasm” inside of each of its 770-ish restaurants, enabled by a laid-back atmosphere (peanut shells scattered on the floor, for example), music at an inoffensively audible level, abundant food (two sides and rolls), and a sharp focus on the “legendary service” part of its motto.
The service objective has been in place since the chain’s beginnings in 1993 — a priority of late founder Kent Taylor, who believed in servant leadership and upside-down pyramids. The company cultivates such service by investing in training, culture-building activities like meat-cutting competitions, bartender competitions, Roadies Impacting Stores Everyday (RISE) events, conferences, outings, and a whole bunch of recognition opportunities — employee of the month, Roadie of the Year, Managing Partner of the Year, and so forth.
Gina Tobin just happened to receive the very first Managing Partner of the Year Award not long after she opened the chain’s eighth location. Getting to the point of managing partner took a mix of equal parts serendipity and intrigue. The serendipity piece came when a friend called to tell her he knew a guy looking for a strong operator to help get his then-new concept off the ground in Louisville, Ky. Tobin was running 10 restaurants in Michigan as district manager of Chi Chi’s at the time and very much qualified as a “strong operator.”
Blackstone acquires majority stake in Jersey Mike’s
Private equity giant Blackstone will acquire a majority ownership position in Jersey Mike’s, the fast-growing sub shop purchased by Peter Cancro in 1975. Terms of the deal were not disclosed.
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Cancro will maintain a significant equity stake and continue to lead the business. The partnership with Blackstone is intended to help enable Jersey Mike’s to accelerate its expansion across and beyond the U.S. market, and continue its technology and digital transformation, according to the companies. “We believe we are still in the early innings of Jersey Mike’s growth story and that Blackstone is the right partner to help us reach even greater heights. Blackstone has helped drive the success of some of the most iconic franchise businesses globally and we look forward to working with them to help make significant new investments going forward,” Cancro said in a statement.
Cancro has served as chief executive officer since 1975, overseeing the brand’s growth to nearly 3,000 locations across the country. The chain totaled $3.4 billion in sales last year, a 25% increase over 2022, according to Technomic data, with 12% year-over-year unit growth. In 2019, Jersey Mike’s finished the year with 1,665 locations, illustrating its recent expansion. The company is on track to reach $4 billion in sales and 3,000 units in 2024, with international expansion in Canada and Europe in the pipeline.
Delta Air Lines to offer Shake Shack burgers to first class customers
Delta Air Lines’ first-class passengers will soon be able to order Shake Shack burgers on flights, the burger chain said Tuesday.
Starting Dec. 1, first-class customers flying out of Boston on routes of more than 900 miles will be able to pre-select a ShackBurger made with a beef patty on a potato bun served with lettuce, tomato, and signature ShackSauce on the side. It will be served with chips, a Caesar salad, and a dark chocolate brownie. The airline and fast-casual chain said they plan to expand the offering to other domestic markets throughout 2025.
Shake Shack already has 19 licensed locations in domestic airports, including two at the Delta terminal at JFK in New York City, and it said it plans to open one at Boston’s Logan International Airport over the next six weeks (although it will not be in the Delta terminals).
Delta’s managing director for onboard service, Stephanie Laster, said in a statement that burgers are one of the most frequently ordered menu items onboard, “and we’re thrilled to elevate the offering with Shake Shack.”
Wingstop and Raising Cane’s land on Gen Z consumers’ radars
A recent report uncovered that Gen Z consumers aren’t that loyal when it comes to restaurant brands. That doesn’t mean they avoid them all together, of course, and another new report shows which brands they do prefer and why.
The third annual “Gen Z’s Top 25 Most Magnetic Brands” report from research and strategy firm dcdx, finds that McDonald’s, Wingstop, Raising Cane’s, Chipotle, and Starbucks are popular among the demographic. This is notable because Gen Z – consumers who are 12- to 27-years-old – is expected to wield $12 trillion in spending power by 2030, according to Nielsen, likely making it the wealthiest generation ever.
The question now becomes how do restaurant brands tap into that wealth? Let’s take a look at how this handful of brands “magnetizes” the coveted cohort.
Texas Roadhouse CEO shares winning strategies that turned restaurant chain into massive success
Jerry Morgan was hand-selected by founder Kent Taylor to become Texas Roadhouse’s CEO when Taylor passed away in March 2021. While he’s honored the foundation that Taylor built by staying committed to “Legendary Food. Legendary Service.” he’s also worked to modernize and grow the casual dining restaurant chain.
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