Ruby Tuesday Essay

Should Ruby Tuesday Remain as a Casual-Dining Restaurant?

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Should Ruby Tuesday Remain as a Casual-Dining Restaurant? Ruby Tuesday has not posted positive revenue growth since 2006. Preliminary outcomes for its fiscal third quarter in February was $225.7 million, which was 17% less than the $271.5 million it reported last year (Munarriz, 2017). Although Ruby Tuesday intends to be acquired, this is considered as a poor strategy that will lead to shareholder loss. The best alternative is to reposition itself as a better-burger restaurant which can increase shareholder value and sales.

PEST and SWOT Analyses PEST analysis indicates stable political and economic factors, whereas social and technological factors

Selling out may not benefit shareholders, while focusing on take-out and deliveries would not shake off the "oldness" of Ruby Tuesday's brand. Ruby Tuesday has to start fresh with a new brand and restaurant design that can compete with existing better-burger brands (Richter & Street, 2017). Also, using food trucks can make the business mobile in offering the new brand across the country, thereby serving as a marketing strategy too (Richter & Street, 2017). Food trucks are famous to-go food sources too, especially when placed near schools and workplaces (Richter & Street, 2017). To assess the success of the repositioning, quarterly and annual sales should be closely monitored, as well as customer satisfaction through monthly

Ruby cannot stay as it is because it has stagnated as a brand. To revive sales, it must become a new company with a new name and positioning that can capture consumers who love to-go food that are delicious, quick to make, and accessible.

References

Bureau of Economic Analysis (BEA). (2018). U.S. Economy at a Glance: Perspective from the BEA Accounts. Retrieved from https://www.bea.gov/newsreleases/glance.htm

Maze, J. (2015). Casual-dining's summer slump: Full-service traffic declined as consumers defected to quick-service competitors. Nation's Restaurant News, 49(13), 104.

_______. (2016). 10 reasons casual dining is still struggling: Competition, economic factors and changing consumer habits lead to weak same-store sales trends. Nation's Restaurant News, 50(8), 42.

_______. (2017a). Casual dining finds a ray of light: Takeout: Chains are making a big push for delivery and to-go orders, but will it be enough? Nation's Restaurant News, 51(8), 14.

_______. (2017b). Casual-dining continues to cede market share: Better-burger chains pick up the slack. Nation's Restaurant News, 51(10), 42.

Munarriz, R. (2017, March 14). Goodbye -- but Not Good Buy -- Ruby Tuesday. Fool.com.