Hart pointed out that Texas Roadhouse enjoys the advantage of "real estate flexibility" in its site selection, explaining that "We are not dependent on being where the lunch crowd is, like many of our competitors." Since Texas Roadhouse is primarily a dinner restaurant and serves lunch only on the weekends, it can operate profitably in many varied types of locations and in many places that competitors would not likely choose, the CEO said.

The Texas Roadhouse locations are in 39 states, primarily in mid-sized cities, but Colosi noted that the company also does very well in some small towns and has restaurants in larger cities like Boston, Dallas and Denver as well. "Based on our demographic, we have identified 600 potential locations in the US where we could go," Colosi said. "Basically, we can go anywhere Outback can go," he added, although he pointed out that Texas Roadhouse would not likely open as many locations as a chain like Applebee's, which tends to space its restaurants a bit closer that the Louisville-based chain.

Having gone public with its IPO about a year ago, the company is on track to open 20 new restaurants in 2005 and opened 19 in 2004, according to Hart. Colosi elaborated on the growth strategy, saying the chain expects to expand the number of company-owned stores by 16% to 18% yearly, meaning the actual number of new company restaurants will rise each year as the base rises. It expects franchised units to grow by about four to six locations per year.