MARYVILLE TENN. Ruby Tuesday Inc. is adding a new tactic: value. In addition, the company revealed it had purchased a controlling interest in a single-unit, fast-casual concept, Wok Hay Fresh Asian Diner, for research purposes and possible development. —After posting a 48.5-percent plunge in profit in its most recent quarter despite a two-year effort to drive sales with upgraded menu items and decor,
Ruby Tuesday this month will unveil at its 935-unit flagship chain new, bargain-priced lunch combination meals starting at $6.99. The company also said it would reduce prices on its appetizers, entrées and salad bar options and would introduce additional promotions from November through January. —After posting a 48.5-percent plunge in profit in its most recent quarter despite a two-year effort to drive sales with upgraded menu items and decor,
Ruby Tuesday officials admitted that the chain would be playing catch-up with its competitors when it comes to pushing value. —After posting a 48.5-percent plunge in profit in its most recent quarter despite a two-year effort to drive sales with upgraded menu items and decor,
Applebee’s since March has been offering the value-centric “Pick ’N Pair” lunch menu option of items starting at $5.99 in most markets. T.G.I.Friday’s is advertising a “3-Course Menu” that allows customers to choose from among five appetizers, 12 entrées and four desserts for $12.99. —After posting a 48.5-percent plunge in profit in its most recent quarter despite a two-year effort to drive sales with upgraded menu items and decor,
“To compete more effectively for the short and long term, we feel we have to add [another] strategy…compelling value,” Ruby Tuesday founder and chief executive Sandy Beall said during the company’s Oct. 11 quarterly conference call. “We are definitely committed to our long-term strategies of brand position. Better food and service and a nicer place always [work] with the guests. And if you add better value, it should work even better.” —After posting a 48.5-percent plunge in profit in its most recent quarter despite a two-year effort to drive sales with upgraded menu items and decor,
Ruby Tuesday has spent nearly two years working to lure higher-income customers, who are believed to be less affected by high gas prices and shrinking home values, by upgrading its brand image through better-quality menu items, restaurant remodels and new marketing campaigns that rely on television advertising rather than coupons. While observers say the company may have miscalculated slightly, they say the damage is not irreparable. —After posting a 48.5-percent plunge in profit in its most recent quarter despite a two-year effort to drive sales with upgraded menu items and decor,
“The company tried to move its brand positioning up too far too quickly…abandoning its core middle-income, bar-and-grill consumer,” securities analyst Steven Rees at J.P. Morgan Securities LLC said in a research note. “We believe this is not irreversible and think trial of the brand will encourage higher frequency as store-level offerings have improved.… Consumers will recognize that Ruby Tuesday has actually succeeded in making substantive and noticeable improvements to its menu and service.” —After posting a 48.5-percent plunge in profit in its most recent quarter despite a two-year effort to drive sales with upgraded menu items and decor,
Ruby Tuesday’s renewed focus on value may be aided by a new experiment in its newly purchased Wok Hay. The $1 million acquisition in late June, which was reported this month in corporate filings with regulators, presents “an opportunity for research and development,” said Ruby Tuesday vice president Rick Johnson, who spoke to Nation’s Restaurant News via e-mail. —After posting a 48.5-percent plunge in profit in its most recent quarter despite a two-year effort to drive sales with upgraded menu items and decor,
“Although we may consider opening one or two more [Wok Hay units],” he said, “we have no plans at this time to do anything other than operate one local restaurant that is a very appealing concept with great food.” —After posting a 48.5-percent plunge in profit in its most recent quarter despite a two-year effort to drive sales with upgraded menu items and decor,
Several casual-dining competitors have added fast-casual concepts to their portfolios in recent years. P.F. Chang’s China Bistro Inc. operates a chain of fast-casual restaurants called Pei Wei Asian Diner, and Carlson Restaurants Worldwide, parent to the T.G.I. Friday’s casual-dining brand, also owns the fast-casual Pick Up Stix Fresh Asian Kitchen concept. Also experimenting with Asian cuisine is The Cheesecake Factory Inc., which is gearing up to introduce a new full-service concept, Rock Sugar Pan Asian Kitchen. Another casual-dining company, California Pizza Kitchen Inc., also has tapped the fast-casual market with its CPK/ASAP brand. —After posting a 48.5-percent plunge in profit in its most recent quarter despite a two-year effort to drive sales with upgraded menu items and decor,
According to a dining guide serving Wok Hay’s home market of Knoxville, Tenn., the restaurant’s menu offerings include noodle bowls, like “Singapore Noodles,” which consists of rice noodles tossed in a peanut sauce with tomatoes, Napa cabbage, carrots, cilantro and scallions, with a choice of beef, chicken, vegetables, shrimp or scallops. Starters include seared ahi tuna and Wok Hay spring rolls. Among the main dishes are General Tso’s chicken, moo goo gai pan and Malaysian curry. —After posting a 48.5-percent plunge in profit in its most recent quarter despite a two-year effort to drive sales with upgraded menu items and decor,
As for how Wok Hay fits into corporate planning, Johnson said, “Relative to [the company’s] overall corporate strategies and direction, it’s not a significant development at this time.” —After posting a 48.5-percent plunge in profit in its most recent quarter despite a two-year effort to drive sales with upgraded menu items and decor,
As Ruby Tuesday strengthens its value offerings, officials said they also would continue remodeling restaurants. Once the remodels are completed, the chain will heavily target the higher-income guest it has coveted with direct-mail advertising campaigns to households with incomes of more than $75,000. The materials will highlight the chain’s upscaling effort and the company said it expects to see positive results in 12 to 18 months. —After posting a 48.5-percent plunge in profit in its most recent quarter despite a two-year effort to drive sales with upgraded menu items and decor,
Remodels at all corporate units, which number about 691 units, are expected to finish by March 2008, the company said. About 300 units have already been revamped. Among the first 50 unit remodels, same-store sales are posting a nominal jump of 2.5 percent, Ruby Tuesday said. That positive result compares to a same-store sales drop of 4.5 percent at corporate units during the company’s latest quarter ended Sept. 4, as well as a decline of 10.5 percent in September. —After posting a 48.5-percent plunge in profit in its most recent quarter despite a two-year effort to drive sales with upgraded menu items and decor,
Net income for the company’s fiscal 2008 first quarter, which ended Sept. 4, totaled $11.1 million, or 21 cents per share, compared with year-earlier profit of $21.6 million, or 37 cents per share. The most recent results included costs of 5 cents per share for the chain’s remodel initiative. First-quarter total revenue increased 2.4 percent to $346.8 million. —After posting a 48.5-percent plunge in profit in its most recent quarter despite a two-year effort to drive sales with upgraded menu items and decor,
While the latest results met the company’s already-reduced target from last month, Ruby Tuesday still was forced to lower by as much as 58 cents per share its full-year profit estimate. The company now expects to earn between $1.01 per share and $1.13 per share for fiscal 2008. That estimate includes 18 cents to 20 cents per share in costs for Ruby Tuesday’s remodels. Same-store sales are expected to be down 3 percent to 5 percent at corporate restaurants. —After posting a 48.5-percent plunge in profit in its most recent quarter despite a two-year effort to drive sales with upgraded menu items and decor,
