Ruth's Chris updates itself
I've been meaning for a couple of days to link to this story that was published Monday, but Restaurant Week has gotten in the way.
The article discusses the ways the Ruth's Chris chain is scaling back in a response to the recession and its changing audience. But its problems could apply to any number of special-occasion restaurants.
We've talked about this in earlier posts on aging restaurants and on fixed-price menus and other ways special-occasion restaurants are keeping their heads above water. ...
I notice the Baltimore Ruth's Chris locations are offering a $39.95 three-course dinner all summer, as well as a couple of half-price wine days.
I actually didn't realize the Ruth's Chris parent group was in any trouble. (The article mentions plunging sales and heavy debt.) I suppose all special-occasion restaurants are feeling the pain, but steakhouse chains seemed less vulnerable than more imaginative restaurants.
I guess not.
(Kenneth K. Lam/Sun photographer)
Comments
It should be pointed out that the local Ruth Chris' are not owned by the chain but by Steve de Castro and his Big Steaks group.
Posted by: Ted | August 12, 2009 3:01 PM
"more imaginative restaurants"?
It's about the food.
If an operation can actually manage to produce the food properly, as described and on a consistent basis that is subject to the presence of one particular staff member...
then the place can indulge in all the elaborate and the theatrical.
In almost every instance of less than financial success it is directly attributable to the operation getting that sequence wrong by believing that appeal to jaded foodies matters.
Posted by: MrRational | August 12, 2009 4:53 PM
Morton's is in on the "discount" act, too. I have coupons for 2 dinners for $100 (wine not included) good till the end of September.
Posted by: Frequent Little Italy Restaurant Visitor | August 13, 2009 6:34 AM
I agree with MrRational on this one. It's all about the food. I saw an epsiode of Bourdain where he was in Japan (I think) and part of the gimmick for diners was eating in wheelchairs at surgical steel tables. How on earth does that add to your dining experience?
Having said that, I think Ruth's Chris consistently gets raves about great steaks and good service, so I can only imagine that they are in trouble because of their hefty price tag. And, IMHO opening a location on Rt 50 was a fatal error in judgement.
I may be wrong, but we've only had one comment from one person ever saying that they eat there. With all the commotion downy ocean, there's much better bargains to be had.
Posted by: Joyce W. | August 13, 2009 6:52 AM
Ruth's Chris became a publicly traded company in August 2005, and almost immediately got hit with Hurricane Katrina. Since then, it's dealt with ballooning debt from expansions and acquisitions, management upheaval, and the current economy. The same stock that sold for $18/share in the 2005 IPO dropped to $0.70 in March 2009, and currently trades in the range of $3-$4. To be fair, Morton's, which had an IPO in February 2006 at $17/share, has had an equivalent stock price decline (as low as $1.42, and currently in the range of $3-$5). Not even steakhouses are immune from the current economic climate.
Posted by: hmpstd | August 13, 2009 8:25 AM
Little Italy -- I took Morton's up on their 2 for $100 deal. It was a great price for the amount of food. The steak was cooked excellently. The service was excellent too. Give it a shot!
Posted by: BaltBabs | August 13, 2009 3:46 PM