Ruby Tuesday hasn’t exactly pursued a me-too strategy for the post-Recession, as Restaurant Reality Check noted six months ago. So how’s that contrarian approach working?
Not well, judging from the company’s financial results for the October-through-November period. As you might have heard, Ruby lost $2 million for the quarter, compared with a net income of $4.6 million for the same period of the prior year.
Buying restaurants from franchisees, a 180-degree departure from what most chains are doing today, helped to raise revenues by almost 6 percent. But the gain was far more than offset by debt expenses and a steeper-than-expected decline in unit sales, which came despite new service and value initiatives.
Does that mean the company is scrapping its contrarian views? Well, yes and no.
As we noted here in July, the company’s namesake chain is betting it can win more bargain-hunters by giving customers access to its salad bar without an add-on charge. It’s sticking with that more-is-lots-more approach. In a call with financial analysts, executives spoke cryptically of additional service enhancements that are currently in test at 10% of company-run Ruby units.
They didn’t reveal all the components of the new Surprise & Delight initiative, but did divulge such components as shaking martinis tableside, and having servers grate Parmesan cheese onto patrons’ entrees after they’re served.
But the biggest disclosure was a mention that Ruby plans to follow the herd for a huge savings on routine restaurant upkeep—repair & maintenance, or R&M, in industry parlance. Instead of letting each restaurant handle that function, Ruby is going to centralize control, “which a lot of the QSR chains and some of the other casual dining chains have gone to,” explained CEO Sandy Beall.
Ruby is confident it can deliver millions in savings by consolidating its expenditures for R&M. “It's approximately [a] $40 million spend a year annually, and we believe that through using a consolidated group that we can better monitor our rates and our costs on the actual parts and what have you,” said EVP and operations specialist Kimberly Grant.
“It's basically bulk buying power for the services we're participating with,” added Beall. “It's like a huge co-op, so better pricing.”
Showing posts with label restaurant service. Show all posts
Showing posts with label restaurant service. Show all posts
Monday, January 9, 2012
Tuesday, April 19, 2011
Service as a concept differentiator
Once upon a time, restaurant innovators focused on the menu as their means of differentiation. But look at today’s innovators and there’s no denying that modes of service are the way of standing out.
Consider, for instance, ZED451, one of the more upscale (and interesting) concepts in the portfolio of Tavistock Group, also the parent of Freebird World Burritos and the ethnic concepts formerly run by eBrands.
The company describes ZED as “a contemporary, internationally inspired steakhouse,” but it’s really a high-end, ultra-high-quality riff on the old Sizzler steak-and-buffet format. Guests help themselves to an extensive spread of fresh, seasonal sides, often with ethnic roots. Included in the spread are salads, vegetables, soups, breads and cheeses.
As you munch what you took, chefs roam the tables with platters of steak, seafood, poultry and game. They carve the proteins for you and explain how it was made, since they were the ones who prepared it.
Servers are still part of the mix. They take and serve drink orders, and presumably clear away empty dishes.
But clearly the concept takes the notion of a display kitchen one step further, bringing the kitchen out to the table to discuss what he or she made for you.
Vapiano, a German chain featuring Italian food, has a similar objective. Like Rich Melman’s FoodLife in Chicago, guests go from station to station for the elements of the meal, charging what they get to a card holding a smart chip. For instance, they can stop at a pasta station and have something made expressly for them. The food is prepared by a “cook-tainer” who converses with them as he or she whips up the serving. The guest brings the food to his or her table.
The U.S. arm of the company describes it as “somewhere between the nicest of fast casual and hippest of casual.”
Of course there’s no shortage of more-conventional entrants in the fast-casual sector, sometimes in decidedly unexpected pairings. Ruby Tuesday is moving away from full service with its development deal with Lime Fresh, a Mexican concept that some might label Chipotle 2.0.
But perhaps the winner in service uniqueness has to be the handful of avant garde places that Technomic has dubbed non-food restaurants. We at MonkeyDish.com prefer to think of them as B.Y.O.F. places, as in have getting the food from elsewhere.
As Technomic’s Darren Tristano explained at our Restaurant Leadership Conference, these new places are basically bars without a kitchen. They encourage you to have food delivered, maybe from a preferred nearby restaurant, or to bring it in from the restaurant trucks or carts outside. Then they sell you the accompanying drinks.
They don’t have to invest in a kitchen or devote space to ovens and the like. Nor do they need the usual venting and exhaust fixtures that render many urban spots unfeasible for a restaurant.
Restaurants without the food. Who’d have thought it? It’s the non-menu menu.
Consider, for instance, ZED451, one of the more upscale (and interesting) concepts in the portfolio of Tavistock Group, also the parent of Freebird World Burritos and the ethnic concepts formerly run by eBrands.
The company describes ZED as “a contemporary, internationally inspired steakhouse,” but it’s really a high-end, ultra-high-quality riff on the old Sizzler steak-and-buffet format. Guests help themselves to an extensive spread of fresh, seasonal sides, often with ethnic roots. Included in the spread are salads, vegetables, soups, breads and cheeses.
As you munch what you took, chefs roam the tables with platters of steak, seafood, poultry and game. They carve the proteins for you and explain how it was made, since they were the ones who prepared it.
Servers are still part of the mix. They take and serve drink orders, and presumably clear away empty dishes.
But clearly the concept takes the notion of a display kitchen one step further, bringing the kitchen out to the table to discuss what he or she made for you.
Vapiano, a German chain featuring Italian food, has a similar objective. Like Rich Melman’s FoodLife in Chicago, guests go from station to station for the elements of the meal, charging what they get to a card holding a smart chip. For instance, they can stop at a pasta station and have something made expressly for them. The food is prepared by a “cook-tainer” who converses with them as he or she whips up the serving. The guest brings the food to his or her table.
The U.S. arm of the company describes it as “somewhere between the nicest of fast casual and hippest of casual.”
Of course there’s no shortage of more-conventional entrants in the fast-casual sector, sometimes in decidedly unexpected pairings. Ruby Tuesday is moving away from full service with its development deal with Lime Fresh, a Mexican concept that some might label Chipotle 2.0.
But perhaps the winner in service uniqueness has to be the handful of avant garde places that Technomic has dubbed non-food restaurants. We at MonkeyDish.com prefer to think of them as B.Y.O.F. places, as in have getting the food from elsewhere.
As Technomic’s Darren Tristano explained at our Restaurant Leadership Conference, these new places are basically bars without a kitchen. They encourage you to have food delivered, maybe from a preferred nearby restaurant, or to bring it in from the restaurant trucks or carts outside. Then they sell you the accompanying drinks.
They don’t have to invest in a kitchen or devote space to ovens and the like. Nor do they need the usual venting and exhaust fixtures that render many urban spots unfeasible for a restaurant.
Restaurants without the food. Who’d have thought it? It’s the non-menu menu.
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