Ruby Tuesday Internal Analysis

Ruby Tuesday’s

A Strategic Analysis

Conducted by: Michael L. Green, Jr.

April 15, 2011

Introduction

Let me first start by saying that I am truly excited that your company has selected me to conduct this analysis. I am very confident that it will provide some very helpful insight as to the direction that your company should move toward in the future. The things that you will be able to find in this analysis are an in depth analysis of the environmental trends that will affect future decision making, a characterization of your company’s strategic make up, and finally the recommendations that I will be making with respect to Ruby Tuesday’s future.

Environmental Analysis

This section is very essential in understanding where Ruby Tuesday’s fits within the industry and how it can use that positioning to excel in the future. Your company’s current structure, identity, and services rendered places you in the restaurant industry, more specifically the segment known as casual dining. This segment of the restaurant industry can be best described as restaurants whose foods are priced in the moderate level, and who provides table service. Two of the most notable competitors in this segment include Chillis’ and Applebees’s. For quite some time this segment was small, but with changing demand and increased competitors things may look different in the future. Let’s take for example market size.

Over the years the market size the for what is known as casual dining has steadily grown, so much that many believe that it has outpaced the actual demand for such restaurants. As Outlined in the Newsweek article, “ there are still 10 percent to 15 percent too many casual dining restaurants in the U.S. based on demand,” exhibit 1 gives a very clear picture of what the actual level of supply looks like versus what it should look like according to demand. This very thought speaks to what will slowly become a mandatory decline in market size if for no other reason than...