Hospitality Management - Ruths Chris Steak House - Case Study Example

Ruth’s Chris Steak House

Introduction

The purpose of this research paper is to examine and explore Ruth’s Chris Steak House. The corporation is situated along 3321 Hessmer Avenue; Metairie, Louisiana, US. The mission of the company is to engage in the construction of a growing, profitable enterprise or restaurant with the intention of highlighting the highest elements of quality, hospitality, and value in agreement with the demands and expectations of the consumers (Canziani, Almanza, Frash, McKeig, & Sullivan-Reid, 2016). The paper will offer historical information, evaluation of services, and target market, as well as competitors with the objective of enhancing effective understanding the functioning of the corporation.

Historical Information

In the mid-19th century, Ruth Fertel, a divorced mother of two, sought to mortgage her home at the expense of $22,000 with the intention of procuring a small 60-seat restaurant in New Orleans, Louisiana. The restaurant did adopt the name Chris Steak House. Shortly after procuring the restaurant, fire outbreak did force the founder of the business entity to change the original location of the enterprise before renaming it to Ruth’s Chris Steak House. Ruth Fertel did exploit enthusiasm and determination to substitute her lack of experience in the restaurant management, thus, the platform for the realization of greater success beyond her expectations (Ruth’s Hospitality Group, 2010).

In 1977, Ruth sought to address the desires of her loyal consumers through the creation of the first franchise outside Baton Rouge, Louisiana. The sizzling franchise did begin after that in the mid-1980s in Georgia. The company focuses on the utilization of the sizzling steaks concepts’ franchise partners to honor the vision, as well as traditions, which Ruth Fertel set as the founder of the enterprise. Evidently, the institution has been able to maximize its humble beginning in New Orleans in 1965 to achieve or attain the current position under the influence of globalization (Ruth’s Hospitality Group, 2010). From this perspective, Ruth’s Chris Steak House has focused on welcoming steak enthusiasts, thus, the platform for the generation of 140 restaurants in the global context (Kupetz & Alon, 2006).

Products and Services

Ruth’s Chris Steak House is an international chain regarding upscale restaurants. In the contemporary society, various listings have focused on placing the corporation among the best restaurants within the United States. The enterprise engages in running Ruth’s Chris Steak Houses in diverse 70 locations inclusive of Mexico and Taiwan. In most cases, the company engages in running more than 50 percent of the restaurants as franchises while the remaining entities enjoy direct operational relationships with others. It is valuable to note that each restaurant tends to have unique décor in spite of the similarity in their menus. The menus tend to feature corn-fed Midwestern beefsteaks regardless of the existence of other dishes in the menus (Ban, 2012).

Steaks account for close to 90 percent of sales. For instance, the company engages in the provision of Ruth’s Chris beef, which is dry-aged in Chicago before shipping twice a week in the large cuts to the relevant restaurants. Eventually, the institution engages in the essence of cutting the steaks into smaller portions at diverse restaurants and preparation by the special process while utilizing the broiler, which undergoes heating to approximately 1,800 degrees Fahrenheit. It is valuable to demonstrate the fact that the cooking technique demonstrates consistency across the chain. Categorically, the institution is a private entity belonging to Ruth Fertel (founder) and her two sons.

Target Market and Market Segmentation

Notably, the target market of a restaurant depends majorly on the consumers living in or visiting the local area. In the course of opening an upscale steakhouse, it is valuable for the business entity to engage in the exploration of the consumers and entities patronizing competition, thus, the platform for the determination of the core consumers (Chathoth & Olsen, 2003). Nevertheless, it is ideal for the business entities to execute demographic analysis of the consumers within the region with the intention of solidifying the target market.

The company engages in targeting business professionals who are less price-sensitive during wining and dining practices. Evidently, business professionals are the secondary target market. In the second instance, since the chains exist in the suburban setting, thus, the platform to cater for the local consumers. From this perspective, the company engages in targeting families and local patrons as the core target market. The group has been essential in facilitating the growth and development, as well as the expansion of the brand.

Marketing Mix

Marketing mix tool is an illustration of product, place, promotion, and price. In this section, it is valuable to engage in exploring the marketing mix of the company.

Product

Ruth’s Chris Steak House focuses on the provision of diverse products in agreement with the expectations and desires of the consumers. For instance, Ruth’s Chris Steak House engages in the production of steaks and chops, seafood and specialties, soups and salads, desserts, and appetizers and sides in the dinner menu. Similarly, Ruth’s Chris Steak House offers cocktails, sparkling wine, red wine, and white wine as major or core drinks to satisfy the needs of the consumers. During the happy hours, consumers have the opportunity to procure drinks and food components, thus, the platform for the maximization of the revenues and profit levels at the end of each fiscal period.

Price

Ruth’s Chris Steak House provides diverse products at different prices and costs. For instance, Ruth’s Chop Salad goes at $9.50 while Filet* goes for $40.00. Additionally, petite filet* goes for $35. These price diversities are essential in the maximization of the revenues of the company as one of the leading operators in the industry.

Promotion

Promotion is essential in enabling consumers to enhance their awareness of the products and services at their disposal. In this context, it is essential to note that Ruth’s Chris Steak House engages in incorporating both traditional and modern advertising and promotional techniques to inform consumers of products that are available at their market disposal (Queensland Government, 2016). This is through utilization of social media platforms, TV, radio, newspapers, and word-of-mouth as critical promotional techniques. The approach is valuable in the maximization of the revenues and profit levels at the end of each fiscal period.

Place/Distribution

Ruth’s Chris Steak House focused on the utilization of a chain of franchises of the restaurants in diverse locations; thus, the platform to exploit globalization. These chains and locations are essential in enabling consumers to purchase products in the menu. Integration of such chains promotes effectiveness and efficiency in the satisfaction of the desires of the consumers.

Competition Analysis

The upscale segment in the restaurant industry proves to be highly competitive because of the slowly growing buyers’ demand, as well as the lack of cost of choosing another restaurant to dine. There are also numerous restaurants in the industry. In most cases, customers tend to expect the great value of food, as well as the quality of service in agreement with the price and promotions (Ban, 2012). Revenues of the restaurants tend to depend on the customer traffic relating to the strong or aggressive marketing. Business entities focus on attaining competitive advantage through changing prices, as well as the exploitation of the differentiating strategies. It is valuable to note that restaurant business is highly competitive because of the high fragmentation (Rmgt, 2012). Corporations compete on quality of the products, cost/price, customer services, locations, and reputation regarding the brand name.

Positioning Grid

Product Differentiation

The company engages in the provision of numerous product variations in terms of food and wine selection while focusing on quality. Ruth’s continues to command and maintain its product price while increasing sales, as well as gaining loyalty to the brand name. The institution engages in the utilization of unique drivers in enhancing differentiation. Management of the institution continues to demonstrate the belief on the influence of differentiation advantage through continuous quality improvement regarding streamlining presentation and preparation (Ban, 2012). Similarly, differentiation approach enables the company to engage in increasing the intensity of marketing and sales activity through exploitation of social media and websites. Moreover, the institution engages in the creation or incorporation of new services such as private dining and HD satellite programs, thus, the platform to enhance uniqueness of the company in addressing the desires and expectations of the consumers (Alon & Kupetz, 2010).

SWOT Analysis

Strengths

• Highly professional customer service
• One of the leading restaurant companies in the upscale segment
• Valuable reputation from the established business, thus, the platform to utilize the strong brand name
• Preparation and distribution of high quality food

Weaknesses

• Increased price point
• Increasing operational or transactional costs
• Increasing cost or price of beef
• Limited number of vendors in the industry

Opportunities

• International expansion and nationwide
• Development of the alternatives on the menu to reduce the price point
• Assessment of alternative vendors while making price arrangements

Threats

• Slow economic recovery
• Costly government regulations
• Increasing competition
• Lack of compliance with the global corporation policies

Conclusion

The research paper sought to examine and explore Ruth’s Chris Steak House. According to the findings of the research paper, the corporation exists along 3321 Hessmer Avenue; Metairie, Louisiana 70002 in the United States. The mission of the company is to engage in the construction of a growing, profitable enterprise or restaurant with the intention of highlighting the highest elements of quality, hospitality, and value in accordance with the demands and expectations of the consumers. The company engages in the provision of unique and quality products, which aim at maximization of the revenues and profit levels at the end of each fiscal period.