Ruth’s Chris

Group-04
 Brief of case study

 Founded by Ruth’s Fertel in 1965 with purchase of Chris

Steak House in city of New Orleans.
 It was 60 seated restaurant on the corner of Board & Ursuline.
 Suffer due to hurricanes in 1965.
 In 1976 Ruth reopened the restaurant in name of Ruth’s Chris
steak house in different locations.
 In 1980’s the little corner steak house grew into a global
phenomena with restaurants opening every year in cities
around the nation & the world.
 Brief of case study(CONT.)

Fertel become first lay of American Restaurants.

In 2005 Ruth’s Chris enjoyed a significant
milestone, completing a successful IPO that raised
more than US$ 154.
In 2005 sales grew to a record US $ 415.8 from 82
different locations in the US & 10 international
locations including Canada, Hong Kong, Mexico
& Taiwan.
 Speciality of Ruth’s Kitchen

Ruth's Chris Steak House in Baton Rouge serves the finest aged,
corn-fed USDA Prime beef. Broiled in a trademark 1,800° oven
& served on a plate heated to 500 degrees, your steak is
presented to you sizzling hot. At Ruth’s Chris Steak House in
Baton Rouge you can always enjoy New Orleans-inspired
cuisine, aged USDA Prime steaks, fresh seafood, signature side
dishes and incredible homemade desserts, all complemented by
an award-winning wine list and served with Southern hospitality
in an elegant, yet comfortable atmosphere. Ruth's Chris never
fails to please!
Ownership of Ruth’s restaurant
Competitor’s details
 Criteria for Franchisee
 Liquid net worth of at least US $ I million.
 Verifiable experiences within hospitality industry.
 Cost of frenchisee – US$100000 per restaurant.
 5% gross sales royality fee
 2% of gross sales fee as a contribution to the national advertising
campaign.
 Each franchisee entered into 10 years franchisee agreement with 10-years
renewal options for each restaurant.
 Each agreement granted franchisee territorial protection, with option to
develop a certain number of restaurant in their territory
 Termination clause in the event of non-performance by the franchisee.
 World Opportunity

Four standard models considered by Dan Hannah(Vice president

for business development)
1. Product Development- new kind of restaurant in existing
market.
2. Diversification- new kind of restaurant in new market.
3. Penetration- more of the same restaurant in new market.
4. Market development- more of the same restaurants in the
new markets.
Growth Path Restaurant
 Criteria for selecting New
Market
 Beef Eater- Ruth’s kitchen is having lot of verities of meats &
Sea foods. But primarily customers are beef eaters.
 Legal to import US beef- Use only USDA approved beef.
 Population & High urbanization rate- Their target market should
be highly density populated area.
 High Disposal income- Population having high disposal income.
 Willing factor to spend money for out side food.
 Affinity for US brand.
 Challenges with new model

Identification of new franchisee.

How & whom will be selected as find Global
partner.
Importing beef from US to other global market.
Affinity towards US brand
THANK YOU