Texas Roadhouse restaurant engages the market by expanding operations into different states across the globe. The company applies the expansionary business strategy by opening branches in various regions across the world. In effect, Texas Roadhouse has approximately 182 offices in 34 states (Graham & Jolson, 2016). Texas Roadhouse Restaurant increases its sales volume in the competitive hospitality environment by opening many offices and rising expenditure in marketing approaches. The company has been spreading risks to customers by serving the interests of many customers across different regions. Texas Roadhouse can improve its performance through the application of technology.
Business strategy is perceived to be a master plan which a company applies to increase its competitiveness in the market (Anand & Gray, 2017). The business model used by Texas Roadhouse Restaurant is by drawing customers into the business and sells affordable steaks. As a result, the company’s operating business model results in low operating margin. The operational strategy applied by Texas Roadhouse is to successfully drive same-store sales growth even in situations where the competitors continue struggling to succeed in the market. In an attempt of achieving and winning customers’ loyalty, Texas Roadhouse Company applies integrity and honesty in an effort of meeting success in the business. However, there is a need for restructuring the business operating strategy to increase its competitiveness.
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Technology is a position to improve the company’s overall effectiveness by changing the business model and operational strategy (Anand & Gray, 2017). Technology will be able to change the operational cost by improving how the business hires, manage and deliver services to the customers. In the process of hiring employees, Texas Roadhouse can enhance the product by using websites to attract talented employees in the organization. For instance, there can be the use of sites such as easy pairings and culinary agents to acquire skilled employee applicants. Technology is also applicable in Texas Roadhouse to improve the menu mix approach required in developing success in the competitive hospitality industry. Talented employees and use of websites such as farmers’ web and sourcery web increase the ability of the company to acquire local ingredients, thus improving customers’ experience (Gao & Su, 2017). Technology improves the process through which the company manages its service delivery, thus achieving its objective for drawing customers into the business.
The company focuses on serving customers with integrity and honesty. Texas roadhouse increases its revenue in researching and identifying a process capable of drawing customers in the business. Technology is applicable in helping restaurants to improve customer engagement. Consumer internet and mobile adoption have increased the ability for customers to remain connected and remain attached to the company’s products (Gao & Su, 2017). As a result, consumers require restaurants to become digital and act with integrity and honesty to improve customer experience. Texas Roadhouse is in a position to ensure that there is an increase in the level of convenience and personalization in offering services to clients. Through the use of Technology, Texas will be able to provide products and services without the need for clients to go the premises. Clients will be able to access their favourite products and services through digital media platforms, thus increasing success in the business.
Texas Roadhouse Restaurant needs to increase viability in the business by ensuring that technology fits the company’s managerial strategy. Texas Roadhouse Restaurant operates by hiring an operating manager to control the functioning of the company in different regions. When a staff member offers services to the business for approximately five years, they are promoted to become a manager in one of the 392 locations across different regions (Graham & Jolson, 2016). In effect, the company has many employees earning more than $100,000 per year. The number of general managers is high, thus increasing operational costs. As a result, the adoption of technology, such as offering online services and offering delivery services, will be able to increase success in the business in accessing the company’s products and services. Hiring managers from within the company to operate at the many branches draws many customers to Texas Roadhouse Restaurant.
Technology can be used as a source of competitive advantage for companies in the hotel and restaurant industry. Texas Roadhouse main competitor is Logan’s Roadhouse, thus increasing the desire for Texas to adopt technology as a way for increasing competitive advantage. Logan’s Roadhouse seeks to expand operation in the market and selling products at a price that is higher than that of Texas Roadhouse Restaurant. For instance, Texas Roadhouse its products and services at $9.99, while Logan’s Roadhouse sales at $10.9 for products and services. This information indicates that the profit margin for Texas Roadhouse is lower than that of its competitors. If Texas Roadhouse adopts technology in hiring and marketing its products, it will be in a position to increase success in the business thus increasing an opportunity for the company to lower its operational costs (Gao & Su, 2017). For example, hiring talented employees and replacing physical presence with online services minimizes operational costs. In effect, the company will be able to offer products at lower prices, maintaining a high-profit margin, thus maintaining its competitive advantage.
Technology advancement creates an opportunity for changing an organizational structure from hiring, production, to service delivery. Texas roadhouse can improve performance in the competitive industry by adopting technology in production and service delivery. This process will be in a position to reduce operational costs by Texas Roadhouse, thus increasing profit margin.
References
Anand, G., & Gray, J. V. (2017). Strategy and organization research in operations management. Journal of Operations Management, 53, 1-8.
Gao, F., & Su, X. (2017). Omnichannel service operations with online and offline self-order technologies. Management Science, 64(8), 3595-3608.
Graham, J. J. L., & Jolson, M. J. K. A. (2016). EEOC v. East Columbus Host, LLC d/b/a Texas Roadhouse, and Ultra Steak, Inc.
