Document Type

Research Paper

Comments

An industry Analysis Submitted in Partial Fulfillment of the requirements for the MBA Degree Course: MGMT 6800. Instructor, Paul C. Boyd, Ph.D. Faculty Advisor, Martin Sivula, Ph.D.

Abstract

Upscale segment of the restaurant industry makes up approximately 10% of total U.S. restaurant sales (Trends in Fine Dining, 2011a). Severe impact of the economic downturn on the fine-dining segment demonstrated the 13% decline in customer visits in 2009 what triggered steep decline in sales.

In 2011 industry experienced positive tendency and renewed interest to high-profile steakhouse chains and upscale seafood restaurants. As National Restaurant News stated “…fine-dining restaurants will remain popular as long as they continue to offer individuality, food quality and more casual setting …”(Trends in Fine Dining, 2011a). Trend of casualization in fine dining led to the implementing of two different concepts within one establishment: casual bar area with small-plate offerings and formal dining space for the whole experience.

Ruth’s Hospitality Group, Inc. (Ruth’s) is one of the leading companies in the segment that demonstrated positive trend in revenue within five years (2007- $319.17M, 2008 - $393.65M, 2009 - $344.63M, 2010 - $357.63M, 2011 - $369.57M) (Ruth’s Hospitality Group, Inc., 2012a). Balance sheet of the company confirms Ruth’s capability of paying its bills and investing in the future growth.

Dealing with economical factors, change in customer preferences and strong competition Ruth’s proved the strength of the company with overall success. Leaders of the company use its competitive capabilities and resources with reasonable and fair adjustments in order to stay true to the tradition and culture of Ruth’s, obtain the profits, expand nationwide and internationally.

Citation/Publisher Attribution

Ban, V. (2012). Analysis of the upscale/Fine dining sector in the restaurant industry. Johnson & Wales University, Providence, RI.

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