Texas Roadhouse intends to accelerate the expansion of its smaller restaurant concepts.
Texas Roadhouse, the popular American casual dining chain, is set to accelerate the expansion of its younger brands, Bubba's 33 and Jaggers. This shift marks a significant departure from their previous growth patterns, promising strong development expectations for the coming years.
Comparison to Previous Growth Patterns
Bubba’s 33, a full-service sports bar with a rock-and-roll theme, has historically grown steadily but more moderately. Last year, four locations were opened, and seven are planned for this year. In 2024, systemwide sales surged over 20%. The brand currently operates around 53 locations.
Jaggers, a fast casual restaurant offering burgers, chicken sandwiches, salads, and shakes, has had very slow growth over the past decade with only 15 restaurants opened. However, recent openings have been more clustered, including on a U.S. military base in South Korea.
Planned Expansion
For Bubba’s 33, Texas Roadhouse plans “double-digit” openings next year, all company-operated. For Jaggers, up to 8 new locations could open next year, with some franchised alongside company-operated stores. Bubba’s 33 aims to follow the corporate development model typical of Texas Roadhouse with a strong focus on multi-unit company operators.
Expectations for Development
Bubba’s 33 targets a massive long-term goal of about 500 locations, supported by strong average unit sales of $6.5 million, which exceed typical casual dining peers. The company views both brands as ready for rapid growth due to improved leadership, operational infrastructure, and strong guest reception.
In the second quarter of 2025, Bubba’s 33 achieved average weekly sales exceeding $128,000 (even higher for locations under six months old), signalling robust consumer demand. Jaggers also showed impressive growth in sales (+58% according to Technomic data in 2024), with average weekly sales near $76,000 in Q2 2025.
Summary
The growth pace for Bubba’s 33 and Jaggers is shifting from slow and cautious to aggressive and scaled, with the parent company now confident in both brands' readiness to expand significantly. Bubba’s 33 especially is poised for rapid growth toward hundreds of locations, leveraging Texas Roadhouse’s proven operational playbook and strong consumer appeal. Jaggers, while smaller, is also accelerating expansion, particularly by blending corporate and franchised units.
This planned ramp-up contrasts with the previous decade of relatively slow growth and reflects Texas Roadhouse’s confidence in these concepts as meaningful contributors to their overall portfolio’s future growth. CEO Jerry Morgan stated that Texas Roadhouse might exceed its usual number of openings in the next couple of years.
The restaurant-level margins at Texas Roadhouse declined to 17.1% in the second quarter, a point lower than a year ago. The acquisition of franchised locations will bring the number of domestic franchised Texas Roadhouse locations to just over 30, or less than 5% of the system.
[1] Source: Texas Roadhouse Q2 2025 Earnings Call [2] Source: Technomic data [3] Source: Texas Roadhouse Brand Expansion Strategy 2026-2027 [4] Source: Texas Roadhouse Acquisition of Louisville Support Center Announcement [5] Source: Texas Roadhouse Investor Presentation 2025
Technology advancements are expected to play a significant role in the expansion strategies of Bubba's 33 and Jaggers, with the use of innovative marketing techniques and streamlined operations to optimize growth. The casino-and-gambling industry, as a general-news topic, could potentially be impacted by the increase in competition and consumer spending in the restaurants' locations. Weather conditions, especially in the locations where new Jaggers stores are planned to open, could also influence the success of their expansion, as inclement weather might affect foot traffic and sales.
