Sometimes businesses do stupid things. Sometimes they are incredibly smart. This article is about the incredibly smart business decision that will gain good-will and increase revenue.
Texas Roadhouse has been a serial supporter of one of my favorite Charities, Christy’s Legacy of Hope. The Charity was named for Christy DePriest Wright, one of my former students at Liberty University.
Christy earned her business degree in order to more effectively meet the needs of orphaned Children in China. She had worked in orphanages short-term, and she planned to go back to China full-time, but she was struck down with a rare form of cancer in 2010.
Her family incorporated a 501(C)3 to carry on her work.
Texas Roadhouse has been a great help from the start. I recall a fundraiser in 2010 at a local restaurant (to defray medical expenses for her illness) and Texas Roadhouse has come through again.
Christy’s Legacy Card
Gift Cards have become trendy holiday gifts. Most gift cards exchange equal value (e.g. $50 dollars in exchange for $50 dollars of value on the gift card). Some offer a slight discount. This one gives 10% of the proceeds to Christy’s Legacy of Hope to provide for the needs of orphaned children in China. Additionally, the customer who uses this card will get a free Baby Blossom with the purchase of a entrée for an entire year.
Sounds Like an Expensive Proposition for Texas Roadhouse
Is Texas Roadhouse losing money? They are giving away a lot of free food and foregoing 10% right off the top. It seems like they are leaving a lot on the table, but I would bet they will make it back in free publicity, new customers, and return trips.
For example, I am pretty sure that I would not have written this article for the sake of maximizing the profits of Texas Roadhouse. But because they are contributing to a great cause, I am contributing my time to write about it. And now you know about it. It is a virtuous cycle and you can join in. Buy a gift card, pass this along to a friend, and keep the cycle going. Tweet about it.
Here is the short link: http://wp.me/pYT7Z-bU
Texas Roadhouse created value by contributing to a good cause (creating good will) which will increase their revenues (increased traffic and free marketing from people like me) leading to further good will and increased traffic.
What can your company do to create such a virtuous cycle?
-Darin Gerdes, Ph.D.
November 23, 2012
Dr. Gerdes is the Director of the MBA Program at Charleston Southern University
Note: The gift card will be available until Christmas 2012. The 10% donation will continue to stream until Christmas of 2013
The FREE BABY BLOSSOM IS ONLY VALID AT TAYLOR LOCATION (14660 PARDEE ROAD TAYLOR, MI 48180)
Contact Jessica Ericson of Texas Roadhouse at (734) 788-1410 or TaylorTexRoad@gmail.com.
A $0.40 fee will be applied for shipment of the card.
Thank you to TEXAS ROADHOUSE.