Ruby Tuesday, Inc

Restaurants | Financial Main Page | IGHRM Main Page
Disclaimer:

International Guild of Hospitality & Restaurant Managers

150 West Church Avenue
Maryville , TN 37801

Phone: (865) 379-5700
Fax: (865) 379-5004

Ruby Tuesday, Inc. (RTI) owns and operates the Ruby Tuesday concept in the bar and grill segment of casual dining. The Company also offers franchises for the Ruby Tuesday concept in domestic and international markets. As of June 4, 2002 , the Company owned and operated 397 casual dining restaurants, located in 25 states and the District of Columbia . Also, as of June 4, 2002 , franchisees operated 183 domestic restaurants located in 19 states and 16 international restaurants located in the Asian-Pacific region, India , Puerto Rico , Iceland and Central and South America .

Ruby Tuesday restaurants are casual, full-service restaurants with warm woods, whimsical artifacts and classic tiffany-style lamps. Ruby Tuesday's menu is based on variety, with something for just about everyone. Some of Ruby Tuesday's entree items, which are prepared fresh daily, are fajitas, ribs, chicken entrees, steak entrees, seafood entrees, pasta entrees, burgers, soups, sandwiches, its signature salad bar and signature Tallcake desserts in strawberry and chocolate varieties.

At June 4, 2002 , RTI owned and operated units concentrated primarily in the southeast, northeast, mid-Atlantic and midwest. The Company considers these regions to be its core markets. RTI intends to open approximately 50 to 55 Company-owned units during fiscal 2003. The majority of these new restaurants are expected to be located in existing markets. Development plans call for a continued shift towards freestanding restaurants versus mall-based restaurants, with approximately 97% of new restaurants to be opened in fiscal 2003 expected to be freestanding. Existing prototypes range in size from 4,000 to 6,600 square feet, with seating for 152 to 290 guests. The Company's focus is on a new 5,600 square-foot, 222-dining seat restaurant.

The Company's domestic franchise program began in the fiscal year ended May 27, 1997 (fiscal 1997). Domestic franchising efforts are concentrated outside RTI's core growth markets, which consist primarily of Florida and certain parts of the midwest, northeast, and western United States . Under the franchise agreements signed by each franchise partner, the Company receives development and license fees from the franchisees in exchange for the right for the franchisees to develop, over the next five to six years, and operate, over the next 15 to 25 years, Ruby Tuesday restaurants in their respective areas. RTI also receives royalty fees from the franchisees based on a percentage of each restaurant's sales, as well as support service fees for providing a variety of services, including the maintenance of franchisees' accounting records.

During the fiscal year ended June 4, 2002 (fiscal 2002), RTI sold 20 Ruby Tuesday restaurants to domestic franchise partners and 19 other new Ruby Tuesday restaurants were opened by domestic franchisees, bringing the total of domestic franchised restaurants to 183. The 24 domestic franchise partners and one traditional franchisee operate these 183 units in Arkansas (one) California (one), Colorado (12), Florida (52), Illinois (18), Indiana (nine), Iowa (one), Kansas (four), Kentucky (five), Maine (two), Michigan (25), Minnesota (five), Missouri (14), Nebraska (five), Nevada (one), New York (18), Oregon (one), Utah (five) and Washington (four).

The Company's International franchise program, which also began in fiscal 1997, continued its development during fiscal 2002 by opening five international franchise restaurants during the year. At present, the Company has 16 international franchised units with franchisees located in the Asian-Pacific region, India , Puerto Rico , Iceland and Central and South America .

RTI's WOW-U, located in the Maryville, Tennessee, Restaurant Support Services Center, serves as the centralized training center for all of the Company's and its franchisee's restaurant managers and other team members. Facilities include classrooms and a test kitchen. WOW-U provides managers the opportunity to gather for intensive, ongoing instruction and interaction. Programs include classroom instruction and various team competitions, which are designed to contribute to the skill and enhance the dedication of the Company's and franchise partners' teams and to strengthen its corporate culture. Further contributing to the training experience is RT Lodge, which is located on a wooded campus just minutes from the Restaurant Support Services Center . RT Lodge serves as the lodging quarters and dining facility for those attending WOW-U.

Financial Main Page | IGHRM Main Page

Disclaimer:
The data included within the Financial section is solely for information and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly urged to obtain professional advice with qualified individuals or corporations for any investments of funds.