way around. “People come for the food, and the sports is there,” Doster said. Bubba’s serves both lunch and dinner and is currently generating average unit volumes of $6.5 million, well above the sports-bar average of $4 million, according to Technomic. In fact, its numbers are more similar to a steakhouse, where the per-unit average is more than $5 million. Texas Roadhouse, though, is in a tier of its own with $8 million AUVs. At first, the company was careful not to make the Bubba’s-Roadhouse connection too obvious in an effort to protect its original concept. “I think when you have such success with one brand, you are a little cautious when a second one comes out, because if it isn’t as successful, then does it hurt your main brand,” Morgan said. “But that’s not the case in this scenario. Bubba’s 33 is absolutely a complement to our portfolio.” Bubba’s and Roadhouse can co-exist in the
same market, Morgan said. When scouting real estate for Bubba’s, the team will look at the existing sports bar competition in a town. But it doesn’t worry too much about stealing share from a Roadhouse that may already be there. That said, the two brands do share customers. Burgers and pizzas are everyday items, but Texas Roadhouse has made steak, typically reserved for special occasions, more accessible to the masses. “I do see a lot of the same guests that eat at Roadhouse would probably eat at Bubba’s,” Morgan said. But he noted that there are plenty of meals in the week to go around. “How can we get Roadhouse and how can we get Bubba’s in that equation a little more on a regular basis?” One potential answer to that question is value, which has helped both brands avoid some of the consumer spending challenges that have stung the restaurant industry in recent years. Roadhouse has deliberately
underpriced inflation, sacrificing some profits in exchange for better traffic and sales. “You’ve got to have value built into your menu and your concept,” Morgan said. “You have to be able to serve a lot of people from that side of it.” Bubba’s is still small, just 5.5% of the size of Roadhouse in terms of total sales last year. But the company doesn’t intend for it to stay that way. Executives have their sights set on 200 locations in the near term, but believe Bubba’s could eventually have as many as 500, which is about the size of a Red Robin or Red Lobster today. That is a recipe for a very large brand. If Bubba’s AUVs were to stay where they are today, even 200 restaurants would make it among the very largest casual-dining chains in the country in terms of sales. “We’re targeting 200 right now, but I do believe we can get to 400 or 500,” Morgan said. “And once we get there, then we’ll know how much further we can go.”
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RESTAURANT BUSINESS JULY 2025
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