Ruth's Chris Steak House

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Ruth's Chris Steak House, Inc.
Type Public (NASDAQ: RUTH)
Founded In 1965 at Broad Street in New Orleans, Louisiana
Headquarters Heathrow, Florida, USA
Key people Craig S. Miller, Chairman & CEO
Ruth Fertel, Founder
Industry Restaurants
Products Food service
Market Cap $474.75M (04-22-07)
Revenue ▲ $74.75 million USD (2006)
Website ruthschris.com

Ruth's Chris Steak House (NASDAQ: RUTH) is a chain of 114 steakhouses[1] across the United States and in several international locations. The restaurant is regarded as an upscale fine dining establishment, marking a gradual elevation in its status since its founding in the 1960s.[2] Ruth's Chris is currently the largest player in the luxury steak market, besting other restaurants such as The Palm and Morton's chains in number of locations, operating income, and overall profit.[3] On November 19, 2007, the chain's newest location, and the tenth new site in 2007, opened in Santa Barbara, California. On March 22, 2008 the company announced it would be seeking stockholder approval to change its name to Ruth's Hospitality Group to better represent the business after the acquisition of Mitchell's Fish Market[4].

Contents

[edit] History

The chain was founded by the late Ruth Fertel, a single mother of two, in 1965, after she bought the existing Chris Steak House in New Orleans. In buying the restaurant, Fertel had to agree that the restaurant keep the "Chris" name for a specified period of time. After the original location sustained a kitchen fire, she relocated the restaurant about one-half mile (0.9 km) to the west on Broad Street and renamed the rebuilt establishment "Ruth's Chris." Under the purchase agreement, the name "Chris Steak House" could not be used at any other location, and she did not want to lose customers already familiar with the Chris name.[5] Fertel started to franchise the restaurant in the 1970s to locations throughout the United States and throughout the world.[6]

Advertising efforts are primarily focused in the talk radio market and its male demographic. The chain has cultivated paid endorsements from several radio celebrities, including Rush Limbaugh and Sean Hannity, with the latter proclaiming Ruth's to be his favorite restaurant.[7] Ruth's won the 2006-2007 Golden Icon Award for "Best Steak House Chain"; the Golden Icon Awards are presented annually by Travolta Family Entertainment.

In 2005 Hurricane Katrina devastated Greater New Orleans (see: Effect of Hurricane Katrina on New Orleans), and the chain moved its corporate headquarters to Heathrow, Florida. In June 2008, the chain announced a plan to return corporate headquaters to New Orleans by August of 2008. Like most businesses in the city, two of the chain's locations in the Greater New Orleans area were forced to close because of the storm.[8] The Metairie, Louisiana location has since reopened. Amid much criticism of local officials and media, and on the heels of Morton's steakhouse announcement it would reopen its own New Orleans branch,[9] the corporate offices announced that, due to extensive damage, the old flagship Ruth's Chris on Broad Street would be permanently closed and donated to charity.[10] In May 2008, Ruth's Chris re-opened in New Orleans and is centrally located downtown in the Harrah's hotel at 525 Fulton Street. The opening of the New Orleans restaurant has brought more than 110 new jobs to New Orleans, and Ruth's Chris has provided relocation assistance to several employees of the original Broad Street location allowing them to return to New Orleans and work after being displaced by Hurricane Katrina.

[edit] Fare

The restaurant's signature is serving USDA prime steaks that are seared at 1800°Fahrenheit[11] (982.2°C[12]) and served on plates heated to 500°Fahrenheit (260°C). One ounce (30 g) of butter is added just before the plates leave the kitchen in order to cause the meat to sizzle. In addition to steaks, the restaurant also serves entrees of chicken, lamb, fish and shellfish.[13]

Main entree prices, ranging typically from $18.95 to $79.95, are for the dish itself and do not include any Hors d’œuvres, salads or side dishes. The side dishes are served a la carte, priced at an average of $8.00. Portions are generally large enough to serve two or more diners. Of particular repute are the au gratin potatoes, topped with a bechamel sauce and cheddar cheese. Also available are dessert selections, also priced at an average of $8.00, with the restaurant's signature pecan pie being a staple item throughout the chain.[14]

All locations offer smaller, separate rooms for private dining[15] as well as a gift card program.[16] Reservations (available online at http://www.ruthschris.com) are recommended and the dress code is usually a range from business/dressy to business casual.[17]

[edit] See also

[edit] References

  1. ^ Press Release, Ruthschris.com, 02-26-07.
  2. ^ "Ruth's Chris Steak House", Funding Universe. Retrieved on 2007-04-22. 
  3. ^ Farkis, David. "Raising the Stakes", Chain Leader Magazine, 2005-12-1. Retrieved on 2007-04-22. 
  4. ^ Ruth's Chris vying to change name, First of Columbus, March 27 2008
  5. ^ McDowell, Bill, "Ruth's Chris Steak House," Restaurants & Institutions, August 1, 1994, 54.
  6. ^ "Never Give Up: Ruth's Chris Steak House," Entrepreneur Magazine, September 1997, 81.
  7. ^ Farkis, David. "Raising the Stakes", Chain Leader Magazine, 2005-12-1. Retrieved on 2007-04-22. 
  8. ^ Dash, Craig. "Ruth Built the Steakhouse. Katrina Intervened", New York Times, 2005-9-5. Retrieved on 2007-04-22. 
  9. ^ Fitzmorris, Tim. "Morton’s beefs up city’s diminished steak offerings", New Orleans City Business, 2006-2-27. Retrieved on 2007-04-22. 
  10. ^ Press Release, Ruth's Chris Steakhouse, Inc., November 18, 2005.
  11. ^ Savor Perfection with a Steak from Ruth's Chris Steak House, Ruth's Chris Steak House, accessed July 2, 2007.
  12. ^ [1], 5/9 * (1800-32),accessed June 18, 2007.
  13. ^ Sample menu, ruthschris.com, accessed April 22, 2007.
  14. ^ Ibid.
  15. ^ Private dining, ruthschris.com, accessed April 22, 2007.
  16. ^ Gift card program, ruthschris.com, accessed April 22, 2007.
  17. ^ Reservation center, ruthschris.com, accessed April 22, 2007. </ref Gift card program], ruthschris.com, accessed April 22, 2007.

[edit] External links