Submitted by: Submitted by bbetterley
Views: 494
Words: 1593
Pages: 7
Category: Business and Industry
Date Submitted: 07/15/2013 06:17 AM
Ruth’s Chris Restaurant Case Study
Issue Identification:
In order to meet Wall Street expectations for revenue growth the Ruth Chris Restaurant company must expand its franchise or corporate store locations.
Environmental & Root Cause Analysis:
1. Company needs to decide where to expand locations to.
2. Ruth’s Chris restaurants only use USDA prime beef this is costly to import to foreign countries.
3. If you allow local prime beef it must meet the strict standards required by Ruth’s Chris Restaurant
4. Target customers are for well-to-do beef eaters; therefore you must find a market location to be strong to accommodate a successful store location.
5. Since a typical Ruth’s Chris fine dining experience is about $70US new locations must be in locations where the population has customers with high disposable income.
6. Ruth’s Chris is an American brand and with some countries being anti American, careful considerations would have to be made to consider foreign country store locations.
7. A decision on whether franchises, more corporate stores or possible joint venture opportunities to be offered to the new market locations.
8. No data to support how many people eat out or how much they spend.
9. Franchise options have to meet strict application criteria. This limits opportunities for expansion locations to entrepreneurs.
10. For any new location opportunities research will be required to analyse what the local competition is and it may affect success of a new Ruth’s Chris store.
Alternatives and Options:
a. Expand market in the US only
i. PROs - Customers know the brand, US friendly welcomed store
ii. CONs - Large foreign market opportunities may not be captured
b. Expand locations to a foreign market
i. PROs - Opportunities for future growth stores once first store is in place
ii. CONs - Import costs high for USDA grade beef if local supplier...