Instructor Note
The following multiple-choice questions and answers were created for a student self-test exam. Select all or some of these questions for an exam. Provide the video link, these questions and the following instructions for this student exam. This could be an asynchronous assignment submitted prior to a class discussion of the video.
Student Instructions:
1. Watch the video about Texas Roadhouse below (full video, approximately 6:30).
2. Answer the 30 multiple-choice questions below.
3. Select the one best answer for each question.
1. According to CEO Jerry Morgan, what do customers talk about before they talk about the steaks?
A. The drinks menu and the margaritas
B. The fresh baked bread, honey cinnamon butter, peanuts, and the friendliness of the people✓
C. The cleanliness and the décor
D. The prices and the portions
2. In 2024, Texas Roadhouse overtook which restaurant chain in sales for the first time?
A. Applebee's
B. Chili's
C. Olive Garden✓
D. Red Lobster
3. What is Texas Roadhouse's ranking among U.S. casual dining chains by sales?
A. Second largest
B. Third largest
C. Fourth largest
D. Largest✓
4. According to CEO Jerry Morgan, what describes the energy at Texas Roadhouse?
A. Quiet and refined
B. Rowdy energy that goes with their honky tonk✓
C. Family-friendly and calm
D. Formal and professional
5. What is the approximate price for an 8-ounce hand-cut sirloin steak with two sides at Texas Roadhouse?
A. $30
B. $45
C. $19✓
D. $25
6. How many sirloin steak size options does Texas Roadhouse offer?
A. Two options
B. Three options
C. Five options
D. Four options✓
7. What percentage of Texas Roadhouse's commodity basket is beef?
A. About 25%
B. About 75%
C. About 50%✓
D. About 30%
8. By approximately how much did the price of a pound of sirloin steak rise compared to the same time last year, according to the video?
A. About 5%
B. Nearly 16%✓
C. About 30%
D. About 10%
9. What did Texas Roadhouse change about how it serves peanuts after COVID?
A. They eliminated peanuts from the menu entirely
B. They now charge for peanuts
C. They switched from bulk peanuts to individually branded bags✓
D. They only offer peanuts on weekends
10. According to CEO Morgan, what marketing benefit comes from the branded peanut bags?
A. Customers resell them online
B. Bags are taken home and seen by friends and family, spreading brand awareness✓
C. It reduces food waste
D. It allows the company to increase prices
11. What is Texas Roadhouse's stated strategic priority when it comes to driving revenue?
A. Raising prices regularly to cover costs
B. Reducing portion sizes
C. Driving top-line sales by providing a great guest experience rather than raising prices✓
D. Expanding internationally
12. What does CEO Morgan say about controlling utility costs in restaurants?
A. He outsources energy management to a third party
B. He installs solar panels at every location
C. He looks for 'pennies, nickels, and dimes' through discipline—like not turning on fryers or lights until needed✓
D. He negotiates bulk contracts with utility providers
13. By approximately how much did Texas Roadhouse increase menu prices in late last year?
A. About 5%
B. About 10%
C. About 2%✓
D. About 7%
14. What is Texas Roadhouse's growth goal for number of restaurants?
A. Over 500 restaurants
B. Over 1,500 restaurants
C. Over 900 restaurants✓
D. Over 2,000 restaurants
15. At what rate is Texas Roadhouse building new restaurants each year?
A. About 50 per year
B. About 100 per year
C. About 20 per year✓
D. About 10 per year
16. What does CEO Morgan say about beef price cycles?
A. Beef prices have been consistently rising for decades
B. Beef prices cycle up and down over 30+ years; the current upswing seems extended✓
C. Beef prices are unaffected by supply changes
D. Beef prices have stabilized due to new farming methods
17. What factor does the CEO cite as keeping beef available despite fewer cattle?
A. International beef imports
B. Plant-based protein substitutes
C. Heavier weights on fewer cattle✓
D. Government subsidies for beef producers
18. How has Texas Roadhouse maintained customer loyalty despite price increases?
A. By offering loyalty points and coupons
B. By not changing portion sizes or the overall guest experience✓
C. By introducing a premium membership tier
D. By adding new menu items at lower prices
19. What does CEO Morgan use as a metaphor for managing restaurant costs?
A. Running a government budget
B. Managing a sports team
C. Managing your own home or business✓
D. Running a nonprofit organization
20. According to the video, how does Texas Roadhouse's value proposition differ from typical steakhouses?
A. It focuses exclusively on premium cuts at high prices
B. It targets only affluent customers
C. It provides a quality steak experience at a price far below typical steakhouse rates✓
D. It is primarily a bar with food options
21. What does the free bread and free peanuts represent strategically for Texas Roadhouse?
A. A loss leader that hurts profitability
B. An unnecessary operational cost
C. Part of their value proposition that signals care for the guest✓
D. A promotional gimmick used only during holidays
22. What is the tone CEO Morgan uses when discussing challenges like politics and inflation?
A. Deeply worried and cautious
B. Dismissive of all problems
C. Focused on positive energy and what the company can control✓
D. Critical of government policies
23. According to the video, what is one way Texas Roadhouse demonstrates being 'hospitable' to its guests?
A. Offering complimentary desserts
B. Friendly service paired with an energetic casual atmosphere✓
C. Providing free Wi-Fi and charging stations
D. Delivering food to customers' cars
24. How does Texas Roadhouse's approach to pricing compare to its competitors, according to CEO Morgan?
A. Texas Roadhouse has been more aggressive with price increases
B. Texas Roadhouse has raised prices at roughly the same rate
C. Texas Roadhouse has been more conservative with price increases than most competitors✓
D. Texas Roadhouse has not raised prices at all
25. What does CEO Morgan describe as the 'value piece' of the menu?
A. The drink specials
B. The dessert menu
C. The happy hour offers
D. The free peanuts and fresh-baked bread✓
26. What relationship does Texas Roadhouse rely on to manage beef costs despite being a large buyer?
A. Government contracts for subsidized beef
B. Direct ownership of cattle ranches
C. Great relationships with their meat packers due to volume✓
D. Importing beef from international markets
27. What customer behavior metric does CEO Morgan reference to show customers accept their price increases?
A. App downloads and engagement rates
B. Customer satisfaction survey scores
C. Top-line sales growth✓
D. Number of loyalty program members
28. What does CEO Morgan suggest about sharing the burden of rising costs?
A. Customers should pay for all cost increases
B. Suppliers should absorb all cost increases
C. The government should subsidize restaurant costs
D. Both the company and customers should share some of the cost increase✓
29. How does Texas Roadhouse create a 'country music-style' atmosphere?
A. By playing classical music in all locations
B. By offering line dancing classes
C. Through casual energy, honky-tonk style music, and a rowdy yet hospitable environment✓
D. By decorating with rodeo memorabilia only
30. What is the central tension Texas Roadhouse must navigate according to the video?
A. Expanding internationally vs. staying domestic
B. Balancing offering good value to guests against rising food and operating costs✓
C. Choosing between a premium brand vs. a budget image
D. Competing with fast food vs. fine dining
