Ruth Chris Case Study

Running Head: RUTH CHRIS CASE STUDY

RUTH CHRIS CASE STUDY

Introduction

The name Ruth Chris’s Steak House conjures up a mouthwatering steak, potato and perhaps some fresh seafood with a medley of fresh veggies on the side. Not only does the name invoke instant hunger, the company is a multi-million dollar franchise founded by Ruth Fertel in 1976. The company’s vice president Dan Hannah, is looking to expand its franchise base in the international arena however, several issues hinder the process. These issues will be identified in the ensuing paper. In addition to the issues, critical international concerns will be addressed and will be coupled with recommended solutions to counteract the concerns. Based on the recommended solutions certain impacts will transpire and will affect the company. These impacts will be factored into this paper along with the most important concepts taken away from case study of Ruth Chris.

Ruth Chris Case Study

Major and Minor Problems

Ruth’s Chris Steak House does not encounter problems when it comes to the food and customer service it provides. However, problems will arise when the company can not decide where and how to get Ruth’s Chris to the next level. The company has 93 restaurants, 42 of which are company-owned and the remaining 51 franchised owned. One restaurant had to close due to the damage from Hurricane Katrina bringing the total to 92. The company has restaurants located in Canada, Hong Kong, Mexico and Taiwan. All have been profitable.

The name alone attracted many want to be franchisers from all over. However, the company had strict conditions on acceptance:

1. “Liquid net worth of at least $1 million USD”

2. “Verifiable experience within the hospitality industry”

3. “Ability and desire to develop multiple locations”

(Kupetz and Alon, 2006)

The strict criteria above reduced the number of prospects. Additionally the cost alone of “$100,000...