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Ruth's Chris Case Study Report

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Ruth's Chris Case Study Report

Executive Summary

Ruth's Chris is a chain of steakhouse restaurants 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 by Ruth Fertel, a single mother of two. In 2005 Ruth's Chris raised more than $ 154 million in new equity capital. In the same year the restaurant sales grew to a record $ 415.8 million from 82 domestic locations and 10 international outlets, Ruth's Chris is currently the largest luxury steak company.

By conducting TOWS and situation analyses, many internal and external issues have been identified most importantly the deteriorating economic conditions, the stereotypical image of U.S and general anti-U.S, consumers perception, supply of beef and regulations in foreign countries. Other problems include the company's management structure, the restricted brand image and availability of high quality beef in foreign countries..

After studying the problems and aligning them with the strengths and opportunities, we have suggested few strategic alternatives i.e. changing organizational structure, independent brand imaging, broadening customer base, use of local raw material, domestic and global expansion to sustain its position both in domestic as well as in foreign markets.

Table of Contents

Business Environment Analysis 3

Industry Analysis 3

Top Competitors 3

Potential New Entrants 3

Substitute Product Analysis 3

Analysis of Suppliers and Buyers 3

Organizational Analysis 3

Financial Condition 3

Management Philosophy 3

Organizational Structure: 3

Organization Culture: 3

Current Marketing Strategy 3

Analysis of Sales, Profits, and Market Share 3

Analysis of Target Markets 3

Analysis of Marketing Mix Variables 3

TOWS Analysis 3

Threats: 3

Opportunities: 3

Weaknesses: 3

Strengths: 3

Problems Identified in the Situation and TOWS Analysis 3

Strategic Alternatives and Suggestions 3

• Change of Organizational Structure: 3

• Independent Brand Image:. 3

• Broadening of Customer Base: 3

• Domestic Expansion: 3

• Global Expansion:. 3

• Use of Local Raw-Material: 3

• Target Regional Hubs and Metropolises: 3

Conclusion 3

Sources: 3

Records 3

Web Pages 3

Business Environment Analysis

The US restaurant industry includes about 480,000 restaurants with combined annual revenue of about $375 billion. The industry is highly fragmented: the 50 largest companies hold just 20 percent of the market. It consists of full service restaurants (FSR) and limited service eating places, which include quick service restaurants (QSR); cafeterias; buffets; snack bars; and non-alcoholic beverage bars. (Research and Markets, 2011)

Ruth's Hospitality Group (RHG) is one of the largest upscale dining operators in the country with more than 150 locations anchored by the Ruth's Chris Steak House chain. Boasting about 130 restaurants in 30 states and some international markets, Ruth's Chris is the largest high-end steak house chain in terms of number of locations. Its menu features a variety of steak cuts, along with lamb, veal, and fresh seafood. About half the restaurants are company-owned while the rest are franchised. In addition, Ruth's Hospitality operates about 20 seafood restaurants under the Mitchell's Fish Market and Cameron's Steakhouse banners.

In August 2005, the Company completed an initial public offering of the Company's common stock, which is

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