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Texas Roadhouse President and CEO G.J. Hart drew scrutiny for a five-day, 1,000 person employee appreciation the company held in San Francisco recently.
“How dare you have a good time,” scolded a CNBC commentator during an April 6 interview. Managing partners and their spouses were treated to posh rooms at the Fairmont and Ritz-Carlton hotels, big-name entertainment and a street festival during the event.
“We’re going to have a good time, but we’re also going to be serious about what we’re all about … our people and our culture,” Hart responded. “Our people are the biggest asset we’ve got. … We have a philosophy in our company that if we take care of our people, they will take care of our guests.”
That philosophy is paying off. While other restaurants are struggling to attract diners, 89 percent of Texas Roadhouse customers plan to return; 71 percent eat there more than two times a month. In an industry known for its high turnover rates, employee turnover has dropped by 15 percent in the last two years. Incidentally, those employees also have bought $100,000 worth of “I Love My Job” T-shirts to wear at work.
Hart pointed out that Texas Roadhouse wasn’t just spending $2 to $2.5 million on meetings and entertainment. Nearly half the event’s budget was going towards labor and supplies for a full-day of humanitarian work in San Francisco.
“We believe that giving back and doing these types of things make all the sense in the world,” Hart said. “But I’ll tell you something else: I’m not sure it’s enough.”
Here’s the CNBC interview in its entirety:

Join the discussion
Is it the money or the message that causes change? : Plan Your Meetings Says:
2009-05-22 12:55:42
[...] the media were pretty damning, but a lot of the meetings that canceled after being criticized were legitimate business expenses essential to the company and its economic [...]
Patti Burge Says:
2009-06-05 09:37:52
Nice to hear about a company with the courage to stand up for what's important -- your employees. Seems to me that the numbers support you! Way to go!
Addressing misperceptions about meeting : Plan Your Meetings Says:
2009-09-04 13:21:03
[...] made a point to host his appreciation event for his employees and kept his purpose and goals clear. When a CNBC reporter questioned him about how could he spend so much money on entertaining his employees, he replied: “We’re going [...]
Incentive Travel During a Recession: The Benefits « Incentive Travel Blog – Corporate Incentive Travel Says:
2010-04-05 03:03:14
[...] Article & Video 1: Texas Roadhouse CEO defends Employee Appreciation Event [...]
Ben Says:
2011-06-06 13:03:29
Have been going to the Texas Roadhouse in Thornton, Colorado for years along with others as I travel around the U.S and I have a complaint. I am a member of the VFW and American Legion along with some other clubs and a officer in a few. I have always sent business your way and have had events at your establishment but, I'm going to spread the word to every club member and every state and national convention I go to not to go to the Texas Roadhouses anywhere from now on. I just got word that a trainer at the Thornton location was demoted after many years of service. She is one of the reasons many of us go there, the staff is well trained and when she waits tables it is easy to see why. She has been the national trainer of the year and runner up a few times. I hear she has three children that she raises alone because her husband died in Mexico about a year and a half ago or so. I don't know what kind of offense would bring this on but, if that is the way loyal employees get treated, then you don't deserve our business anymore and will spread this to every post and club in the U.S that we go too. I'm sure the CEO who knows this employee wouldn't have treated her with this much disrespect and hope that he might speak up for this lady and see if the local managers can't have their minds changed about her being a trainer? It is their loss but, will come at a great expense in the future from our many members.
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