The Best-Selling Steak At Texas Roadhouse Is Also One Of Its Most Affordable Cuts

Texas Roadhouse secret menu items can be great, but the most popular (and affordable) steak on its menu needs no tips, tricks, or hacks to find and order. Though it offers everything from 23-ounce Porterhouses to Dallas filet mignon, it sells more 6-ounce USDA choice sirloin steaks than any other cut.

Texas Roadhouse's USDA choice sirloin comes in 6, 8, 11, and 16 ounces, but the 6-ounce's price is hard to beat. At only $13.99 or thereabouts, depending on location, it comes with your choice of two sides to make a filling and affordable meal. The cut itself is quite lean, so it's a great option if you're looking to get some extra protein or just want that meaty chew that comes from steaks with little marbling. Chefs sear this steak on a flat-top griddle to get that beautiful crust, and finish it off over flame to develop some lovely grill marks and that slight bit of char so many customers want.

Though it's a perfectly fine steakhouse, Texas Roadhouse tries to position itself as a more affordable option, offering consistently low prices and a casual atmosphere rather than one-time promotions. Maintaining this position, especially in the steak market, is a difficult proposition, but one that Texas Roadhouse's corporate office knows how to achieve.

Smart business strategies and giving customers value for the money they spend are at the heart of what makes Texas Roadhouse so affordable. Strategic beef sourcing and menu pricing create a high-quality dining experience that's still cheaper than much of its competition.

Texas Roadhouse steaks are all USDA choice and sourced from America, Canada, and Australia. However, as of 10 years ago, it sources its beef using 24-month contracts that help it maintain prices better than the competition. Beef market prices are tidal, meaning they can be low one year and high the next. While this creates unique business difficulties, Texas Roadhouse gets around fluctuations in inventory price with longer-term contracts than its competition. Since this allows it to maintain relatively stable menu prices and compensate for changes, it's likely they've maintained this practice. 

When it comes to menu prices, Texas Roadhouse knows how to balance its menu to deliver enough value at every price point. It uses a "barbell system," charging less than competitors for items with high margins like burgers and small steaks, and higher prices on premium items like prime rib and porterhouses. Though the vast majority of its customers visit for affordable steaks, customers coming on date nights or special occasions may be willing to spend a little extra, though still less than they would at a higher-end steakhouse. Factor in other strategies like geographic menu pricing and a steak-heavy menu, and you get an efficient supply chain with balanced return margins.