Ruby Tuesday (restaurant)

Ruby Tuesday Inc.
	File:Ruby Tuesday logo.svg Logo used since 2007 rebranding
Company type	Private
Industry	Foodservice
Founded	1972
Founder	Samuel E. (Sandy) Beall III
Headquarters	Maryville, Tennessee, United States
Area served	United States, international locations including Canada, Chile, Egypt, Hong Kong, India, Kuwait, Saudi Arabia
Key people	Samuel E. (Sandy) Beall III (founder), NRD Capital Management (owner since 2017)
Products	Casual dining restaurants specializing in American cuisine
Parent	NRD Capital Management (since 2017)
Website	www.rubytuesday.com

Ruby Tuesday Inc. is a global American foodservice company that owns, manages, and franchises Ruby Tuesday dining establishments. Established in 1972 by entrepreneur Samuel E. (Sandy) Beall III, the business restructured in 1996 following its separation from Morrison Restaurants Inc. Headquartered in Maryville, Tennessee, it operated 209 outlets worldwide as of 2021, with some locations shuttered due to the COVID-19 crisis.

The company's primary brand is a casual dining chain specializing in American cuisine, predominantly situated along the U.S. East Coast, except for Boston and states on the Pacific Coast. Ruby Tuesday has withdrawn from markets including the Great Basin, Great Plains, and Chicago areas. In 2016, the firm divested Lime Fresh Mexican Grill rights to concentrate on its main brand and discontinued other subsidiaries such as Wok Hay, Marlin, and Ray's. It still holds development rights for Truffles Grill.

On June 6, 2012, founder and CEO Sandy Beall announced his resignation. Later, in October 2017, NRD Capital Management purchased Ruby Tuesday for $146 million, taking the company private by early 2018.

Amid financial difficulties worsened by the pandemic, Ruby Tuesday filed for Chapter 11 bankruptcy protection on October 7, 2020, intending to permanently close 185 restaurants. After restructuring, it maintained 236 company-owned locations alongside franchise operations. The company exited bankruptcy on February 24, 2021, operating 209 restaurants after surpassing its targeted closures.

History

Ruby Tuesday was launched in 1972 by Sandy Beall near the University of Tennessee campus with an initial investment of $20,000 pooled from a friend and four fraternity brothers. The restaurant’s name was inspired by The Rolling Stones' song "Ruby Tuesday."

Throughout the 1970s, the chain grew steadily, opening approximately one new restaurant every nine months. In April 1982, Beall sold the then-16-unit chain to Morrison Inc. for $15 million in cash and stock, which provided greater capital resources. Beall assumed the role of president of Morrison's Specialty Restaurant Division that included Ruby Tuesday. By 1985, the chain had expanded to 35 locations and was a significant growth segment for Morrison.

In 1992 Morrison Inc. was renamed Morrison Restaurants Inc., reflecting its focus on foodservice operations. Its restaurant division became known as the Ruby Tuesday Group, with Beall appointed CEO of Morrison Restaurants. In 1996 Morrison Restaurants split into three separate entities: Ruby Tuesday Inc., Morrison Health Care Inc., and Morrison's Fresh Cooking Inc. Ruby Tuesday Inc., incorporated in Mobile, Alabama, became the legal successor company operating multiple brands alongside its flagship concept.

By November 2000, Ruby Tuesday divested all other brands to Specialty Restaurant Group LLC to concentrate solely on its core brand identity. The company updated its NYSE ticker symbol from RI to RT in 2007.

On October 7, 2020, Ruby Tuesday sought Chapter 11 bankruptcy protection due to severe financial strain caused by the COVID-19 pandemic.

Restaurant themes

In August 2007, Ruby Tuesday Inc. broadened its portfolio by acquiring Wok Hay, an Asian dining concept which it transformed from self-service to full-service restaurants. By 2011, there were three operational Wok Hay locations including a franchised site in Trinidad.

In September 2010, the company obtained licensing rights for Lime Fresh Mexican Grill and acquired development rights for Truffles Grill while introducing a new concept called Marlin & Ray's Seafood & Sunsets. The company’s 2011 Annual Report revealed plans to convert underperforming Ruby Tuesday units into these new formats with a target of six to eight conversions and several Lime Fresh openings scheduled for fiscal year 2012.

Ruby Tuesday also experimented with Jim 'N Nick's Bar-B-Q based in Alabama but discontinued this initiative after one year. On April 4, 2012, it acquired fast-casual chain Lime Fresh Mexican Grill for $24 million cash; Lime founder John Kunkel joined Ruby Tuesday’s Board of Directors.

Following a $15.1 million loss in Q2 of 2013, Ruby Tuesday closed thirteen Marlin & Ray's locations and one Wok Hay restaurant while exiting both concepts altogether; it also sought buyers for Truffles Grill venues and shut two Lime Fresh outlets.

In a strategic move to go private, Ruby Tuesday agreed to be acquired by Atlanta-based private equity firm NRD Capital Management in a $146 million deal completed on December 21, 2017.

Headquarters

In 1998, Ruby Tuesday relocated its corporate headquarters from Mobile, Alabama to Maryville, Tennessee, close to the site where the company was originally founded. This facility functions as the Restaurant Support Center and the Center for Leadership Excellence (previously known as WOW-U), providing a corporate hub, training venue, test kitchen, and innovation center for executives, managers, and culinary staff.

The organization purchased land near Maryville College in 1997 to establish the Ruby Tuesday (RT) Lodge, a corporate retreat featuring guest accommodations designed for management training programs.

Distribution

Ruby Tuesday initially concentrated on restaurant locations within or near shopping malls but transitioned in the early 1990s to emphasize freestanding establishments.

By August 2019, Ruby Tuesday operated and franchised dining venues in 43 states across the U.S. and in 13 international countries. The company directly owned 658 restaurants, while franchise partners managed an additional 78 outlets both domestically and abroad. Significant overseas markets include Canada, Chile, Egypt, Hong Kong, India, Kuwait, and Saudi Arabia.

Marketing

Historically, Ruby Tuesday allocated minimal resources to advertising efforts. However, after experiencing declines in customer visits and revenue by 2002, the brand introduced targeted coupon initiatives and expanded its marketing channels to include television, radio, and billboard advertising by mid-2003. Additionally, they rolled out curbside carryout services under the "TueGo!" brand to improve customer convenience.

New identity

In 2007, Ruby Tuesday undertook a comprehensive rebranding campaign aimed at repositioning itself away from the traditional "bar-and-grill" casual dining image. This strategic shift was exemplified by launching a new location in Times Square. The company collaborated with Pentagram design studios to create a refreshed visual identity featuring a new logo in Clarendon typeface, updated color palettes, and redesigned packaging for the "Ruby TueGo" takeout service. Simultaneously, Ruby Tuesday renovated its restaurants by eliminating outdated décor elements and introducing an updated menu emphasizing premium food and beverages, improved service standards, high-definition televisions, and complimentary guest Wi-Fi access.

"Implosion"

In 2008, Ruby Tuesday unveiled an ambitious marketing initiative highlighting its brand evolution. On August 5, a live-streamed event in Mount Holly, Ohio, was promoted as the demolition of the final "old Ruby Tuesday" location. Unexpectedly, a nearby restaurant resembling a standard casual dining venue was torn down instead. It was later disclosed that this was a fabricated promotional stunt using a miniature model and special effects filmed in Harriman, Tennessee. The campaign sought to create excitement around the updated restaurants and emphasize the company’s dedication to its refreshed brand image.

Ongoing Changes

The renovation took place during the Great Recession, which adversely affected Ruby Tuesday's financial results within a challenging casual dining market. To address these difficulties, the company rolled out made-from-scratch garlic cheese biscuits, initiated a Sunday brunch offering, and introduced a steak-and-lobster special night. Despite these efforts, financial experts continued to critique the frequent strategic adjustments.

In 2012, Ruby Tuesday launched another advertising effort aimed at enhancing brand perception by reintroducing television commercials and concentrating on revitalizing underperforming locations.

By 2014, the chain sought to strengthen its family-oriented image by refreshing employee attire with vibrant jeans and shirts, redesigning menus featuring a chalkboard motif, updating its logo for a modern look, and incorporating contemporary music into its stores. The following year, it updated the children’s menu by adding items like cheese pizza and corn dogs, along with colorful drinkware and spiral straws.

To further appeal to families, Ruby Tuesday established a Kids Eat Free promotion every Tuesday at company-owned restaurants, providing complimentary meals for children with the purchase of an adult entrée.

Confronted with declining revenue, the company announced plans in August 2016 to close 95 locations as part of its operational restructuring strategy.

Sponsorships

Between 2006 and 2009, Ruby Tuesday collaborated with Alex Job Racing to sponsor the No. 23 Porsche-powered Daytona Prototype competing in the GRAND-AM Rolex Sports Car Series. In 2009, it secured a long-term sponsorship deal with Eddie Sharp Racing for Tim George Jr.’s No. 2 Toyota in the ARCA Racing Series.

NASCAR

Starting in the 2010 NASCAR Nationwide Series season, Ruby Tuesday partnered with Penske Racing to sponsor Brad Keselowski’s No. 22 Dodge Challenger. The sponsorship appeared in six races during 2010 and expanded to nine in 2011. Additionally, Ruby Tuesday’s branding was featured on the rear deck lid of Brad Keselowski’s No. 2 Dodge Charger in the 2011 NASCAR Sprint Cup Series.

Prior to the 2011 Daytona 500, Ruby Tuesday served as a last-minute one-race sponsor for Brian Keselowski, Brad’s elder brother. The company concluded its sponsorship of Brad Keselowski’s vehicle in 2012.

Ruby Tuesday offers American-style dishes including all-natural chicken, pasta, pork ribs, soups, steaks, and seafood selections. The chain remains well-regarded for its signature salad bar and hamburgers—menu staples since inception. Every location houses a full-service bar featuring cocktails, beer, and wine. In November 2011, the wine list was refreshed with an introduction of "Cultivate Wines."

A distinct menu is available for bulk take-out and catering services. On January 25, 2012, Ruby Tuesday formed a partnership with ezCater to boost catering sales.

From 2009 until 2016, executive chef Peter Glander—previously sous-chef at The Modern restaurant located in New York City’s Museum of Modern Art—steered menu innovation by introducing items such as pretzel buns while discontinuing legacy desserts like the chocolate tallcake.

Dietary considerations

Ruby Tuesday was a pioneer among major national casual dining chains in openly presenting detailed nutritional information directly on its menus. Initially, the chain offered comprehensive nutritional data for every menu item but later transitioned to highlighting a dedicated "Smart-Eating" or "Fit & Trim" section. Nutritional facts and allergen details continue to be accessible upon customer request.

In early 2011, the company refreshed several cocktail recipes to introduce a line of "skinny" drinks, focusing on healthier options for both liquors and mixers. These beverages, promoted as containing fewer than 150 calories, prominently include ingredients such as VeeV Açaí Spirit, Absolut Berri Açaí Vodka, St-Germain elderflower liqueur, and Minute Maid Light Lemonade.

Cookbook

On October 25, 2011, Ruby Tuesday released a cookbook authored by Jeff Morgan entitled Simply Fresh: Casual Dining at Home, which showcases recipes inspired by the restaurant’s menu offerings and signature dishes.

Financial statement restatement

On April 11, 2005, Ruby Tuesday along with its audit committee disclosed a restatement of prior financial reports to properly account for lease-related transactions.

External links

Official website