Texas Roadhouse: Culture as a Moat

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That list of 13 values, I think it is, has remained the same throughout?

We then went on a tour, which is an annual event even today, where the CEO and other key leaders, including the CFO, visit various locations. I was sometimes required to attend every stop, especially if the topic was core values. During the tour, we asked employees about our core values. G.J. Hart, our CEO, took notes on a flip chart, and we received between 1,500 and 2,500 responses. The most common values were passion, partnership, integrity, and fun. We added "all with purpose" to focus the organization on these values.

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That list of 13 values, I think it is, has remained the same throughout?

That's how our core values were established. During my 21 years with the company as the head of the People department, when asked about my biggest accomplishment, I always say it was not screwing up the culture.

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What is the current mechanism for a managing partner to share their successful strategies with the rest of the organization? They obviously have a lot of autonomy, and if something is working well for them, how do they share those learnings? It seems like Kent Taylor used to be responsible for disseminating that kind of knowledge. How does it work today?

This culture is built into the organization. Even on weekly calls, a managing partner shares best practices, allowing all regions to learn from each other. There aren't many silos between regions, although there's always some competition. It's a highly competitive group, and if you're not competitive, it might be a difficult place for you. Because they want to win, whatever it takes.

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