Ruby Tuesday Closing 95 Underperforming Restaurants

Image courtesy of Mike Matney

Diners across the country will have one fewer salad bar to peruse with their lunch or dinner, as Ruby Tuesday announced it will close nearly 100 restaurants by the end of the year. 

Tennessee-based Ruby Tuesday revealed in its fourth quarter report on Thursday that it will close 95 underperforming locations by the end of the year as part of a “Fresh Start Initiative.”

While the company hasn’t identified which of its 724 restaurants will be closed, it said the decision was made after a comprehensive review of its corporate-owned restaurant portfolio.

Performance at the targeted locations was not meeting exceptions, the company said.

In all, the company said Thursday that its revenue declined 5.9% during the 2016 fiscal year, with same-store sales declining 3.7% over the previous year.

The locations are expected to cease operations by September. Full-time and part-time employees impacted by closures will be offered positions in nearby restaurants where possible, the company said.

“The decision to close restaurants is a difficult but necessary step as we take aggressive actions to strengthen our organization,” JJ Buettgen, Chairman of the Board, President, and CEO of the chain, said in a statement.

The company believes that its Fresh Start plan will ultimately create long-term value for shareholders.

Under the plan, the company says it will attract more women and young families, as well as increasing visits from our current Ruby Tuesday guests.

“We believe we can return to positive same-restaurant sales, expand restaurant level margins, and increase operating profit,” Buettgen said.

[via The Indianapolis Star]

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