COVID-19 has hit everyone hard, and, if you’re lucky enough not to be impacted health-wise, the biggest pinch for many people is financially. The CEO of Texas Roadhouse, a casual dining steakhouse, decided to forgo his salary and all bonuses for the fiscal year to help front line employees.
800k Salary From CEO
Kent Taylor, 64 is not just the CEO of Texas Roadhouse, he’s also the founder. As such, the welfare of the employees is very important to him. So, when COVID-19 started to get bad in March, he decided to give his pay from March 18th, 2020 to January 7th, 2021, which totaled over 800k. Additionally, he donated another $5 million to Andy’s Outreach, a charity he formed in 2002 to help with the financial needs of Texas Roadhouse employees. “It’s how I was raised. I did what I felt was right,” he says. “This is that kind of time where you have to persist and think differently and take care of those that are with you and lift everyone’s spirits and march forward.” (1, 2)
Additional Support
Taylor also bought the PPE for his almost 600 stores. And, as of June 24th, 2020, no employee has been laid off or had a pay cut because of COVID-19. “I’m 64 years old and I call people under 55 kids. So I have 70,000 kids, and you want to take care of them. I relate it to my own personal family,” he says. “I want to take care of my family, [that’s] how I look at it.”
He hopes he can motivate those in his employ who are able to pay it forward. “I want them to transfer the love we’re showing them to other people,” he says. (1)
The Financial Impact On Texas Roadhouse
Magazine Courier Journal reports that, as of May 8th, 2020, the company’s revenue was “$652,524, which is down from $690,608 in 2019. Income from operations was $15,790, down 73.9% from the $60,445 in 2019 and the net income is $16,029, which is down 68.2% from the $50,390 a year ago.”
The company has tried to adapt to changes, offering to-go and curbside pickup, as well as offering value packs of steaks, both hot and cold. It’s hard to say if Texas Roadhouse can recover from the beginning of this year. The franchises have reported a 29.7% drop in business in March, compared to other years. (2)
After CEO Gives Up Salary, Others Follow Suit
“I have always said we are a people-first company that just happens to serve steaks,” says Taylor. “Giving up my salary is the least I could do to show my commitment to that belief. This is my family.”
His words have inspired others in the company as well. Chief Operating Officer (COO) Doug Thompson gave up his salary starting in April 2020 and going until Jan. 7, 2021. Chief Financial Officer (CFO) Tonya Robinson and Chief Marketing Officer Chris Jacobsen gave up their salaries for April, May, and June. (3)
