Ruby Tuesday (restaurant)

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Ruby Tuesday Inc.
Type Public
Traded as NYSE: RT
Industry Restaurant
Genre Casual dining
Founded 1972 (1972)
Knoxville, Tennessee, U.S.
Founder(s) Samuel E. Beall, III
Headquarters 150 West Church Avenue
Maryville, Tennessee, U.S. 37801
Number of locations 850 (2011)
Area served Worldwide
Key people James J. "JJ" Buettgen
(CEO)
Todd Burrowes
(COO)
Michael Moore
(CFO/EVP)
Products American cuisine
(biscuits • burgers • chicken • pasta • ribs • salad • seafood • soup • steak)
Revenue Increase US$ 1,265.16 million (2011)
Operating income Decrease US$ 52.622 million (2011)
Net income Increase US$ 46.878 million (2011)
Total assets Increase US$ 1,187.02 million (2011)
Total equity Increase US$ 591.71 million (2011)
Employees 40,500 (2011)
Website rubytuesday.com
References: [1]

Ruby Tuesday Inc. (NYSE: RT) is an American multinational foodservice retailer that owns, operates, and franchises Ruby Tuesday restaurants. The concept was started in 1972 by Samuel E. (Sandy) Beall, III.

The corporation was formed in 1996 as a reincorporation of Morrison Restaurants Inc. They are headquartered in Maryville, Tennessee, and operate 850 locations worldwide between their various concepts.

Their flagship brand is an American cuisine casual dining restaurant chain that is primarily located along the eastern coast of the United States. The company also owns Lime Fresh Mexican Grill, Wok Hay, and their internally developed concept, Marlin & Ray's Seafood & Sunsets. Additionally, they hold development rights to Truffles Grill.

On June 6, 2012, founder and long-time CEO Sandy Beall announced he would be leaving the company.[2][3]

Etymology

The restaurant's name was taken directly from The Rolling Stones song, "Ruby Tuesday", which was popular during the time of the first restaurant's inception. The name was suggested to founder Sandy Beall by a fellow investor.[4][5]

History

A Ruby Tuesday restaurant in Durham, North Carolina, August 2008.

Ruby Tuesday was born out of a $10,000 endowment Sandy Beall had received from a friend and operator of several Pizza Huts to open his own restaurant.[citation needed] With that money, and another $10,000 put together with four of his University of Tennessee fraternity brothers, the first Ruby Tuesday restaurant was opened in 1972.[6][7] The location was adjacent to the University's Knoxville campus, and although the building still stands, the restaurant has since closed.

Over the subsequent decade, Ruby Tuesday extended their footprint with a new location opening about every nine months. In April 1982, Sandy sold the expanded 16-unit Ruby Tuesday chain to Morrison Inc. for $15 million in cash and stock.[7] The sale provided the rapidly growing restaurant chain with additional financial support. It also saw Sandy become president of a newly formed Specialty Restaurant Division spearheaded by Ruby Tuesday.[1] By 1985, the chain had grown to operate 35 locations, and was a major contributor to the renewed success of Morrison's.[7]

Morrison Inc. was renamed Morrison Restaurants Inc. in 1992 to reflect the importance of their lucrative restaurant investments. Additionally, the company realigned their dining division with a new name, the Ruby Tuesday Group.[8] That same year, Sandy was named CEO of Morrison Restaurants Inc.[7] On March 9, 1996, the shareholders of Morrison's approved a distribution and dissolved Morrison Restaurants Inc. into three separate companies; Ruby Tuesday Inc., Morrison Health Care Inc., and Morrison's Fresh Cooking Inc.

Ruby Tuesday Inc. became the legal successor to Morrison Restaurants Inc. and was incorporated in Mobile, Alabama.[9] At the time of the distribution, Ruby Tuesday Inc. operated many other restaurant brands in addition to their flagship Ruby Tuesday brand, including: L&N Seafood Grill, Mozzarella's Café, Silver Spoon Café, and Tia's Tex-Mex.[7] In November 2000, Ruby Tuesday Inc. completed the sale of all restaurant brands (with the exception of Ruby Tuesday) to Specialty Restaurant Group, LLC. This divestiture allowed Ruby Tuesday to concentrate exclusively on the growth and development of its namesake brand.[10] On April 12, 2007, Ruby Tuesday Inc. changed its NYSE ticker symbol from RI to RT.[11]

Restaurant themes

The main entrance of Ruby Tuesday Inc. headquarters in Maryville, Tennessee, February 2012.

In August 2007, Ruby Tuesday Inc. ventured back into other concepts with their newly acquired Asian dining restaurant, Wok Hay.[12] The company proceeded to convert the concept from self-service to full-service dining. In October 2008, a second location was opened in a former Ruby Tuesday restaurant building.[13] The company's 2011 Annual Report noted an additional franchised Wok Hay restaurant in Trinidad, bringing the emerging chain to three operating restaurants.[1]

In September 2010, Ruby Tuesday Inc. continued its venture into other concepts with an agreement to license the Lime Fresh Mexican Grill brand. Earlier the same year, Ruby Tuesday also acquired the development rights to Truffles Grill and introduced their home-grown Marlin & Ray's Seafood & Sunsets concept.[14][15] As of 2011, the company is researching conversion of poorly performing Ruby Tuesday restaurants into some of these concepts. An excerpt from the 2011 Annual Report:

As of May 31, 2011, we owned and operated one Marlin & Ray’s, one Truffles, and two Wok Hay restaurants. We are currently evaluating the conversion of certain lower performing Ruby Tuesday concept restaurants to these concepts. We currently anticipate converting approximately six to eight company-owned Ruby Tuesday concept restaurants to the Marlin & Ray’s, Truffles, or Wok Hay concepts in fiscal 2012. Additionally, we anticipate opening one to two new restaurants and approximately seven to nine smaller, inline Lime restaurants in fiscal year 2012.

The company has also experimented conversion with the Alabama-based Jim 'N Nick's Bar-B-Q chain. However, a year after remodeling a Ruby Tuesday restaurant into the company's first Jim 'N Nick's, company spokeswoman Meridith Hammond indicated they would no longer explore that particular concept.[16] On April 4, 2012, Ruby Tuesday Inc. announced that it had purchased fast-casual chain Lime Fresh Mexican Grill for $24 million cash.[17][18] The announcement by Sandy Beall went on to add that "...John Kunkel, Lime’s founder, will be joining our Board of Directors following completion of the acquisition."[19]

In 2013, after posting a second quarter loss of $15.1 million, or 24 cents a share, Ruby Tuesday decided to immediately close 13 Marlin & Ray's restaurants and close its one Wok Hay location, exiting from both concepts. It also decided to seek a buyer for its two licensed Truffles Grill restaurants and close two company-developed Lime Fresh restaurants.[20]

Headquarters

An international Ruby Tuesday in Telford Plaza, Kowloon Bay, Hong Kong, June 2009.

In the summer of 1998, Ruby Tuesday relocated its main headquarters from Mobile, Alabama to Maryville, Tennessee, just 15 miles south of where the company had been founded. This location contains their Restaurant Support Center and an on-site training facility, called the Center for Leadership Excellence (formerly known as WOW-U).[10] These facilities are used as an internal troubleshooting department, development center, test kitchen, and corporate office for the company's executives, restaurant managers, and chefs.[4]

The company purchased a residential property at nearby Maryville College in 1997 to develop a corporate retreat, and renamed it the Ruby Tuesday (RT) Lodge. Additional guest buildings were added, and the area is currently used to dine and house management during corporate training sessions. The RT Lodge is also available for private use with advance reservations.[21][22]

Distribution

Throughout the first half of the company history, the chain mainly located itself in or near shopping malls. Starting in the early 1990s, the company adjusted its distribution strategy by including more freestanding locations. This shift changed the brand into a destination spot, and also provided the concept with more opportunities for growth.[8]

As of May 31, 2011, Ruby Tuesday, Inc. has company-owned and/or franchised Ruby Tuesday brand restaurants in 47 states and 15 foreign countries. The company owned and operated 750 Ruby Tuesday restaurants, while domestic and international franchisees operated 43 and 53 restaurants, respectively. Their international locations include Canada, Chile, Egypt, Greece, Guam, Honduras, Hong Kong, Iceland, India, Kuwait, Romania, Saudi Arabia, Trinidad, United Arab Emirates, and the United Kingdom.[23]

Marketing

For much of its history, Ruby Tuesday had little, if any, advertising. By 2002, the company found itself combating traffic and sales losses at many of its locations. This caused the company to change course and introduce coupons at selected sites.[24] By June of the following year, Ruby Tuesday had expanded on this strategy by testing television, radio, and billboard advertising in select locations. The company also began offering a curbside carryout service originally dubbed "TueGo!".[25][26]

New identity

The former Ruby Tuesday logo and slogan, used until December 2006.

In 2007, the company began a series of significant changes to its brand identity. The changes were made to move the brand's customer perception out of the "bar-and-grill" segment of the casual dining industry, and were showcased in the opening of their Times Square location the same year. As part of the changes, Pentagram design studios were hired to help construct a new public visual identity for the brand. The design team created a new logo set in Clarendon, altered the standard color scheme, and created all new packaging to promote the renamed "Ruby TueGo" carryout service.[27] Ruby Tuesday also began remodeling its entire suite of restaurants via the removal of their novelty wall artifacts, faux tiffany lamps, and dated furnishings. The update went on to bring a new menu with higher-quality food and beverages, revamped service techniques, high-definition televisions, and a free guest-accessible Wi-Fi network.[4][28]

Ruby Tuesday CEO Sandy Beall touched on the transformation in his letter to stakeholders in the company's 2007 Annual Report:

Elevating Ruby Tuesday above the crowd to a memorable, high-quality dining experience is critical to our growth and success. We are engaged in a three-year plan to reposition, reinvent and reinvigorate the Ruby Tuesday brand. We began by bringing our guests fresh, exciting new menu choices, then raised our standards of service, and are now creating an innovative new look and style for each and every restaurant. This revitalization will appeal to our loyal core guests while attracting a new generation of consumers.

"Implosion"

In 2008, Ruby Tuesday marketed an advertising campaign to show how radical their recent changes were. On August 5, over "live" streaming internet video, a demolition crew was supposed to implode the final "old Ruby Tuesday" to cap off the brand's commitment of change in front of a small crowd in Mount Holly, Ohio. However, to the crowd's shock, the "restaurant" next door (Cheeky's Bar and Grill, which looked like a typical casual dining chain) was demolished.[29]

Following the events, the senior VP of marketing for Ruby Tuesday (in actuality, an actor) posted a written apology on the company's website and videotaped a formal apology that was broadcast on television. As it turned out, the idea was merely an elaborate marketing ploy to raise attention to the newly remodeled restaurants. The implosion was actually on a miniature set staffed by a Hollywood special effects crew, and the "live" event was actually pre-recorded in Harriman, Tennessee. The two films were then edited together to make it look like an accident.[30]

Changes continue

The remodel and its accompanying changes came at an inopportune time for the chain. A global financial crisis was underway, and the casual dining segment of the industry was financially suffering. To address these issues, the company debuted made-from-scratch garlic cheese biscuits, a Sunday brunch program, and a steak-and-lobster deal night.[31] Despite all of this, financial analysts have been highly critical of the company's actions regarding the ever-changing shift in strategies.[32]

In 2012, yet another advertising campaign was announced to analysts to boost guest perception. It included a reintroduction of television advertising and a continued shift to convert under-performing stores.[19][33]

Sponsorships

A Ruby Tuesday location near the University of Virginia campus in Charlottesville, Virginia, July 2011.

From 2006 until 2009, Alex Job Racing and Ruby Tuesday partnered to form the Ruby Tuesday Championship Racing Team. The team drove the No. 23 Porsche-powered Daytona Prototype in the GRAND-AM Rolex Sports Car Series.[34]

In 2009, Eddie Sharp Racing announced a long-term partnership agreement with Ruby Tuesday as the sponsor of the No. 2 Toyota, driven by Tim George Jr. in the ARCA Racing Series.[35]

NASCAR

Starting with the 2010 NASCAR Nationwide Series, Ruby Tuesday has had a partnership with Penske Racing to sponsor Brad Keselowski in the No. 22 Dodge Challenger. The 2010 season saw them appear in six races; while the 2011 season saw that number increase to nine races. The company was also advertised on the rear deck lid of Brad's No. 2 Dodge Charger in the 2011 NASCAR Sprint Cup Series.[36][37]

Prior to the beginning of the 2011 Daytona 500, Ruby Tuesday was added as a last-minute one-race sponsor for Brian Keselowski, older brother of Brad Keselowski.[38]

In 2012, Ruby Tuesday dropped sponsorship on Brad Keselowski's car.

Menu

Ruby Tuesday in Washington, D.C.'s Chinatown neighborhood, January 2006.

Ruby Tuesday offers primarily American cuisine, including all-natural chicken, pasta, pork ribs, soups, steak, and seafood. However, the brand is still commonly recognized for their salad bar and hamburgers, which have been staples to the chain since its creation.[4][39] All of the restaurants also offer a full bar that serves cocktails, beer, and wine.[40] The wine menu was most recently changed in November 2011 to introduce what the brand is calling Cultivate Wines.[41]

A separate menu is available for placing a bulk take-out or catering order.[42] On January 25, 2012 the company announced their partnership with ezCater to help boost the company's catering sales.[43]

The executive chef for the chain is Peter Glander, who is the former sous-chef at The Modern restaurant located inside of the Museum of Modern Art in New York City. He is responsible for the addition of the "pretzel bun" to their menu, along with the removal of the brand's long-standing dessert, the chocolate tallcake.[4][25]

Dietary concerns

The company was the first large national casual dining chain in the country to post specific nutritional information on their menus.[44] After initially posting this information for all menu items, they reduced the inclusion to a more subtle item-specific format, called the "Smart-Eating" section (currently labeled as "Fit & Trim").[45] Nutritional and allergen-sensitivity information of the entire menu is available upon request.

Early 2011 saw the company revise and rewrite a portion of their drink recipes to encompass trendy "skinny" cocktails.[46] This shift included changing drink recipes to incorporate healthy liquor and mixer alternatives and labeling the new creations with their "under 150 calories" tagline. VeeV Açaí Spirit, Absolut Berri Açaí Vodka, St. Germain Elderflower Liqueur, and Minute Maid Light Lemonade are the key products used in these drinks.[40]

Cookbook

Ruby Tuesday released a cookbook on October 25, 2011 titled Simply Fresh: Casual Dining at Home by Jeff Morgan. The cookbook contains recipes that have been inspired by the menu, and even recipes that are signature to the brand.[47]

Restatement

On April 11, 2005, the Company and its audit committee determined the Company would restate previously issued historical financial statements to properly account for leases.[48]

See also

Wikimedia Commons has media related to Ruby Tuesday (restaurant).


References

  1. ↑ 1.0 1.1 1.2 Ruby Tuesday, Inc. (August 1, 2011). "FY 2011 10-K". U.S. Securities and Exchange Commission. pp. 4–44. Retrieved May 24, 2012. 
  2. ↑ "Ruby Tuesday, Inc. Announces Chief Executive Officer’s Intention to Step Down; Commences Search for Successor" (Press release). Ruby Tuesday Inc. June 6, 2012. Retrieved June 6, 2012. 
  3. ↑ Witkowski, Wallace (June 6, 2012). "Ruby Tuesday CEO, Chairman Beall to step down". Market Watch, The Wall Street Journal. Retrieved June 6, 2012. 
  4. ↑ 4.0 4.1 4.2 4.3 4.4 Segal, David (November 7, 2009). "At Ruby Tuesday, Casual Dining Dons a Blazer". The New York Times. Retrieved May 24, 2012. 
  5. ↑ Ruby Tuesday Inc. (September 4, 2001). "Ruby Tuesday Franchise Review 2002" (PDF). Uniform Franchise Offering Circular (UFOC) (via franchisehelp.com). p. 3. Retrieved May 24, 2012. "... named their restaurant after a Rolling Stones’ song. " 
  6. ↑ "Our History". Ruby Tuesday Inc. 2012. Retrieved May 24, 2012. 
  7. ↑ 7.0 7.1 7.2 7.3 7.4 "Ruby Tuesday Inc. -- Company History". International Directory of Company Histories, Vol. 71 (via fundinguniverse.com). St.James Press. 2005. Retrieved May 24, 2012. 
  8. ↑ 8.0 8.1 Carlino, Bill (May 24, 1993). "Ruby Tuesday tunes trio, adds Sweetpea's to stable". Nation's Restaurant News (findarticles.com). Retrieved May 24, 2012. 
  9. ↑ Morrison Restaurants Inc. (September 28, 1995). "Company News; Morrison Restaurants Plans Three-Way Split". New York Times. Retrieved May 24, 2012. 
  10. ↑ 10.0 10.1 LaVecchia, Gina (May 1, 2002). "Ruby Tuesday Still Rocks". Restaurant Hospitality. Retrieved May 24, 2012. 
  11. ↑ "Changes NYSE Symbol to RT" (Press release). Ruby Tuesday Inc. April 11, 2007. Retrieved May 24, 2012. 
  12. ↑ News Sentinel staff (August 9, 2007). "Ruby Tuesday acquires Wok Hay". Knoxville News Sentinel. Retrieved May 24, 2012. 
  13. ↑ Harrington, Carly (June 14, 2008). "Ruby Tuesday to open second Wok Hay Diner". Knoxville News Sentinel. Retrieved May 24, 2012. 
  14. ↑ Jennings, Lisa (September 21, 2010). "Ruby Tuesday plans to open fast-casual outlets". Nation's Restaurant News. Retrieved May 24, 2012. 
  15. ↑ McCann, Josh (September 15, 2010). "Truffles name might go national under deal with Ruby Tuesday". islandpacket.com. Retrieved April 29, 2012. 
  16. ↑ "Jim 'N Nick's closes on Lovell Road". Knoxville News Sentinel. April 28, 2011. Retrieved May 24, 2012. 
  17. ↑ Walker, Elaine (April 10, 2012). "Ruby Tuesday buys homegrown Miami chain Lime Fresh Mexican Grill". The Miami Herald. Retrieved May 24, 2012. 
  18. ↑ Jennings, Lisa (April 5, 2012). "Ruby Tuesday to buy Lime Fresh for $24M". Nation's Restaurant News. Retrieved May 24, 2012. 
  19. ↑ 19.0 19.1 "Ruby Tuesday Reports Third Quarter Fiscal 2012 Results" (Press release). Ruby Tuesday Inc. April 4, 2012. Retrieved May 24, 2012. 
  20. ↑ Fox, Ben (January 9, 2013). "Ruby Ruby Tuesday Q2 loss widens on restaurant closures". MarketWatch (Wall Street Journal). Retrieved January 10, 2013. 
  21. ↑ "Center for Leadership Excellence". Ruby Tuesday Inc. 2012. Retrieved May 24, 2012. 
  22. ↑ "Our History, RT Lodge". RT Lodge. 2012. Retrieved May 24, 2012. 
  23. ↑ "Restaurant Unit Count" (PDF). Ruby Tuesday Inc. May 31, 2011. Retrieved May 24, 2012. 
  24. ↑ Peters, James (October 21, 2002). "Ruby Tuesday deploys sales, service initiatives: chain reintroduces coupon program and increases staffing in effort to drive traffic". Nation's Restaurant News (findarticles.com). Retrieved May 31, 2012. 
  25. ↑ 25.0 25.1 Peters, James (July 21, 2003). "Ruby Tuesday rolls out changes to drive sales". Nation's Restaurant News (findarticles.com). Retrieved May 24, 2012. 
  26. ↑ Hayes, Jack (November 26, 2001). "Drive-by dining: ruby tuesday steers toward curbside takeout". Nation's Restaurant News (findarticles.com). Retrieved May 31, 2012. 
  27. ↑ DJ Stout; Austin design team (October 26, 2007). "New Work: Ruby Tuesday". Pentagram. Retrieved May 24, 2012. 
  28. ↑ MKM Partners LLC (June 20, 2007). "Ruby Tuesday Is a Casual Dining Gem". Barron's. Retrieved May 24, 2012.  (subscription required)
  29. ↑ Hein, Kenneth (July 30, 2008). "Ruby Tuesday Attempts to Blow Up Failed Image". Adweek. Retrieved May 24, 2012.  (subscription required)
  30. ↑ Raphael (August 5, 2008). "Ruby Tuesday Punks Us All, Blows Up Wrong Restaurant". Serious Eats. Retrieved May 24, 2012. 
  31. ↑ Elan, Elissa (September 30, 2010). "Ruby Tuesday CEO outlines future financial plans". Nation's Restaurant News. Retrieved May 31, 2012. 
  32. ↑ Steverman, Ben (October 27, 2010). "Ruby Tuesday Bets on New Chains to Spark Growth". Bloomberg BusinessWeek. Retrieved May 31, 2012. 
  33. ↑ Liddle, Alan J. (January 9, 2012). "Ruby Tuesday looks to boost brand perception". Nation's Restaurant News. Retrieved May 31, 2012. 
  34. ↑ "Ruby Tuesday and Alex Job Racing Join Forces in Grand Am" (Press release). Alex Job Racing. April 17, 2006. Retrieved May 24, 2012. 
  35. ↑ "Ruby Tuesday Enters Long-Term Partnership Agreement with Tim George Jr.". Eddie Sharp Racing. May 6, 2009. Retrieved May 24, 2012. 
  36. ↑ Brandau, Mark (January 18, 2010). "Ruby Tuesday revs up NASCAR sponsorship". Nation's Restaurant News. Retrieved May 24, 2012. 
  37. ↑ lee_montgomery (January 24, 2011). "Ruby Tuesday remains sponsor of Brad Keselowski, Penske Racing". NNSracing.com. Retrieved May 24, 2012. 
  38. ↑ Pockrass, Bob (February 20, 2011). "Brian Keselowski, Bill Elliott, J.J. Yeley, Dave Blaney get last-minute sponsors". scenedaily.com. Archived from the original on January 23, 2012. Retrieved March 25, 2012. 
  39. ↑ "The Menu". Ruby Tuesday Inc. 2012. Retrieved May 24, 2012. 
  40. ↑ 40.0 40.1 "The Bar". Ruby Tuesday Inc. 2012. Retrieved May 24, 2012. 
  41. ↑ "Cultivate is now at Ruby Tuesday!" (Press release). Cultivate Wines. November 1, 2011. Retrieved May 24, 2012. 
  42. ↑ "Catering Menu". Ruby Tuesday Inc. 2012. Retrieved May 24, 2012. 
  43. ↑ "Ruby Tuesday Partners with ezCater to Boost Catering Sales". Business Wire. January 25, 2012. Retrieved May 24, 2012. 
  44. ↑ "Ruby Tuesday Adds More Lower-Calorie, Lower-Fat Items and Puts Nutrition Information on Its Menu" (Press release). Ruby Tuesday Inc. April 27, 2004. Retrieved May 24, 2012. 
  45. ↑ Kadlec, Daniel (June 7, 2004). "America's Obesity Crisis:Eating Out: Chain Reaction". TIME Magazine. Retrieved May 24, 2012. 
  46. ↑ Viera, Lauren (March 4, 2012). "The skinny on skinny: No longer unique to spa menus, low-cal cocktails have now hit the mainstream". Chicago Tribune. Retrieved May 24, 2012. 
  47. ↑ Ade, Sue (October 18, 2011). "Restaurant serves up simply fresh recipes for enjoying at home". Bluffton Today. Retrieved May 24, 2012. 
  48. ↑ "Ruby Tuesday, Inc. Announces Restatement of Historical Financial Statements Related to Lease Accounting". 

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