Ruth's Chris Steak House is a chain of over 100
steakhouse
A steakhouse, steak house, or chophouse is a restaurant that specializes in steaks and chops. Modern steakhouses may also carry other cuts of meat including poultry, roast prime rib, and veal, as well as fish and other seafood.
History
Choph ...
s across the United States, Canada and Mexico. On May 22, 2008, the company underwent rebranding and became part of
Ruth's Hospitality Group after its acquisition of
Mitchell's Fish Market. The group's headquarters are in
Winter Park, Florida
Winter Park is a city in Orange County, Florida, United States. The population was 29,795 according to the 2020 census. It is part of the Greater Orlando, Orlando–Kissimmee–Sanford, Florida Metropolitan Statistical Area.
Winter Park was foun ...
.
Darden Restaurants
Darden Restaurants, Inc. is an American multi-brand restaurant operator headquartered in Orlando, Florida. Darden has more than 1,800 restaurant locations and more than 175,000 employees, making it the world's largest full-service restaurant c ...
later acquired the chain.
History
The original Chris' Steak House (1927–1965)
Chris' Steak House was founded on February 27, 1927 by
New Orleans
New Orleans (commonly known as NOLA or The Big Easy among other nicknames) is a Consolidated city-county, consolidated city-parish located along the Mississippi River in the U.S. state of Louisiana. With a population of 383,997 at the 2020 ...
entrepreneur Chris Matulich. It was located at 1100 North Broad Street near the
Fair Grounds Race Course
Fair Grounds Race Course, often known as New Orleans Fair Grounds, is a thoroughbred racetrack and racino in New Orleans, New Orleans, Louisiana. It is operated by Churchill Downs Louisiana Horseracing Company, LLC.
The ''Carrollton Race Cours ...
, seated 60 people, and had no parking lot. During Matulich's 38-year management, the business was sold six times. Each time it was sold the business failed and Matulich bought the restaurant back cheaply from the purchasers. In 2022, the building became the focus of a historic preservation dispute, when its new owner demolished the iconic wraparound terracotta-tile awning without the proper permits.
Ownership by Ruth Fertel, 1965–1999
Acquisition, 1965
Ruth Fertel was a divorced single mother who needed money to send her teenage sons to college. Ignoring the advice of her banker, lawyer, and friends, Ruth purchased the restaurant in 1965. She used her brother's restaurant, Sig's Antique Restaurant in Port Sulphur, Louisiana, along with family recipes to lay the foundation for her restaurant. She initially planned to raise just $18,000 () to cover the purchase price, until it was pointed out to her that she would need an additional $4,000 (equivalent to $) to cover the cost of renovations and food. On her first day, May 24, 1965, she sold 35 steaks at $5 each (equivalent to $).
Fertel personally took a hand in every part of the business. For many years, Chris Steak House was the only upscale restaurant in New Orleans with an all-female wait staff.
Name change to ''Ruth's Chris Steak House'', 1976
In early 1976, shortly after Fertel signed a new ten-year lease on the restaurant, a fire destroyed the building. Fertel had recently acquired a second property nearby to rent out as a party space. Within seven days, she had relocated the restaurant to its new location a few blocks away at 711 North Broad Street and re-opened it, expanding to 160 seats in the process.
The sales agreement with Matulich prevented her from using the original name at any other address, so she named the new restaurant ''Ruth's Chris Steak House'' in order to keep some continuity with the previous location. She admitted later to ''
Fortune Magazine
''Fortune'' (stylized in all caps) is an American global business magazine headquartered in New York City. It is published by Fortune Media Group Holdings, a global business media company. The publication was founded by Henry Luce in 1929. T ...
'' that "I've always hated the name, but we've always managed to work around it."
Expansion and franchising, 1976–1999
The first franchised restaurant was opened in 1977 by a loyal customer, Thomas J. "T. J." Moran (c. 1931–2015), in
Baton Rouge
Baton Rouge ( ; , ) is the List of capitals in the United States, capital city of the U.S. state of Louisiana. It had a population of 227,470 at the 2020 United States census, making it List of municipalities in Louisiana, Louisiana's second-m ...
, who went on to open several more franchised Ruth's Chris locations, TJ Ribs, and Ruffino's restaurants through his company T.J. Moran Associates. Fertel noted, "All our franchisees were people who had eaten at one time or another in one of our restaurants. We never looked for franchisees. They came to us".
The chain expanded rapidly over the next two decades, with 66 locations in the U.S. and overseas by mid-1998, and achieving over $200 million in annual revenues.
Acquisition by Madison Dearborn 1999–2005
In 1999, Fertel, then 72, developed
lung cancer
Lung cancer, also known as lung carcinoma, is a malignant tumor that begins in the lung. Lung cancer is caused by genetic damage to the DNA of cells in the airways, often caused by cigarette smoking or inhaling damaging chemicals. Damaged ...
. She sold a 79.3 percent interest in the chain in August 1999 to investment company
Madison Dearborn Partners
Madison Dearborn Partners (MDP) is an American private equity firm specializing in leveraged buyouts of privately held or publicly traded companies, or divisions of larger companies; recapitalizations of family-owned or closely held companies; ba ...
of
Chicago
Chicago is the List of municipalities in Illinois, most populous city in the U.S. state of Illinois and in the Midwestern United States. With a population of 2,746,388, as of the 2020 United States census, 2020 census, it is the List of Unite ...
, remaining as a shareholder until her death in 2002.
In that period, the chain expanded to 86 restaurants, including 10 overseas locations. Revenues fell to $167.8 million in 2003, before rising again to $192.2 million in 2004.
Public company, 2005 onward
On August 9, 2005, under President and CEO Craig Miller, Ruth's Chris Steak House became a
public company
A public company is a company whose ownership is organized via shares of share capital, stock which are intended to be freely traded on a stock exchange or in over-the-counter (finance), over-the-counter markets. A public (publicly traded) co ...
following a successful
IPO
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...
valuing the company at $235 million and an increase of 15 percent in first-day trading.
Relocation to Florida, 2005
In late August 2005
Hurricane Katrina
Hurricane Katrina was a powerful, devastating and historic tropical cyclone that caused 1,392 fatalities and damages estimated at $125 billion in late August 2005, particularly in the city of New Orleans and its surrounding area. ...
devastated
Greater New Orleans
The New Orleans metropolitan area, designated the New Orleans–Metairie metropolitan statistical area by the U.S. Office of Management and Budget, or simply Greater New Orleans (, ), is a metropolitan statistical area designated by the United ...
(see:
Effect of Hurricane Katrina on New Orleans
As the center of Hurricane Katrina passed southeast of New Orleans on August 29, 2005, winds downtown were in the Category 1 range with frequent intense gusts. The storm surge caused approximately 23 breaches in the drainage canal and nav ...
), and the chain moved its corporate headquarters to
Heathrow, Florida
Heathrow is a census-designated place and an unincorporated suburban community in Seminole County, Florida, United States. Heathrow is on the I-4 Corridor in Central Florida, 19 miles northeast of Orlando and 38 miles southwest of Daytona Bea ...
. Like most businesses in the city, two of the chain's locations in the New Orleans area were forced to close because of the storm. The
Metairie location has since reopened. Members of the Fertel family, particularly Ruth's son Randy, were bitterly opposed to the move. Amid much criticism by local officials and media, and on the heels of the announcement by
Morton's that it would reopen its own New Orleans branch, the corporate offices announced that, due to extensive damage, the old flagship location on Broad Street would be permanently closed and donated to charity.
Tulane University
The Tulane University of Louisiana (commonly referred to as Tulane University) is a private research university in New Orleans, Louisiana, United States. Founded as the Medical College of Louisiana in 1834 by a cohort of medical doctors, it b ...
was the recipient of the gift, remodeling and reopening the site in 2012 as the Ruth U. Fertel/Tulane Community Health Center. In May 2008, Ruth's Chris reopened in New Orleans and is centrally located downtown in
Harrah's Hotel at 525 Fulton Street.
In 2011, the corporate headquarters was relocated to its current location in
Winter Park, Florida
Winter Park is a city in Orange County, Florida, United States. The population was 29,795 according to the 2020 census. It is part of the Greater Orlando, Orlando–Kissimmee–Sanford, Florida Metropolitan Statistical Area.
Winter Park was foun ...
.
Expansion
In February 2008, the company purchased the
Mitchell's Fish Restaurant and Columbus Fish Market brands from
Cameron Mitchell Restaurants for $92 million. As the
recession
In economics, a recession is a business cycle contraction that occurs when there is a period of broad decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be tr ...
began to bite, the acquisition was not initially successful. The stock price fell from $22 in 2006 to under $5 and company debts rose to $185 million. CFO Tom Pennison resigned, and CEO
Craig Miller was ousted by the board to be replaced by Mike O'Donnell. O'Donnell restructured and rebranded the company, creating
Ruth's Hospitality Group (RHGI) as the parent entity in May 2008, allowing each of the individual restaurant brands to have their own identity within the group. The current President and COO is Kevin Toomy, formerly owner and president of the Goldcoast Seafood Grill in South Florida.
In February 2013, RHGI reported that fourth quarter sales at Ruth's Chris restaurants were up by 7.0 percent on the previous year, representing the 11th consecutive quarterly increase in sales.
Ruth's Chris continues to add new restaurants, most recently in
Harrah's casino in
Las Vegas
Las Vegas, colloquially referred to as Vegas, is the most populous city in the U.S. state of Nevada and the county seat of Clark County. The Las Vegas Valley metropolitan area is the largest within the greater Mojave Desert, and second-l ...
in January 2013, after the previous Las Vegas location on Flamingo closed in 2009. a new restaurant in
Denver
Denver ( ) is a List of municipalities in Colorado#Consolidated city and county, consolidated city and county, the List of capitals in the United States, capital and List of municipalities in Colorado, most populous city of the U.S. state of ...
, Colorado, and four or five new franchised locations.
In 2015, it was announced that the restaurant was expanding into
Albuquerque, New Mexico
Albuquerque ( ; ), also known as ABQ, Burque, the Duke City, and in the past 'the Q', is the List of municipalities in New Mexico, most populous city in the U.S. state of New Mexico, and the county seat of Bernalillo County, New Mexico, Bernal ...
. In 2016, Ruth's Chris opened its restaurant in
Odenton, Maryland. In 2018, Ruth's Chris opened its newest restaurant at the
Silver Legacy in
Reno, Nevada
Reno ( ) is a city in the northwest section of the U.S. state of Nevada, along the Nevada–California border. It is the county seat and most populous city of Washoe County, Nevada, Washoe County. Sitting in the High Eastern Sierra foothills, ...
which replaced Sterling's Seafood Steakhouse that had been in business from 1995 to 2018.
COVID-19 pandemic
During the
coronavirus pandemic
The COVID-19 pandemic (also known as the coronavirus pandemic and COVID pandemic), caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), began with an disease outbreak, outbreak of COVID-19 in Wuhan, China, in December ...
,
Ruth's Hospitality Group received $20 million in forgivable loans intended for small businesses from the
Paycheck Protection Program
The Paycheck Protection Program (PPP) is a $953-billion business loan program established by the United States federal government during the First presidency of Donald Trump, Trump administration in 2020 through the Coronavirus Aid, Relief, and ...
, leading to widespread backlash.
The funds were distributed as part of the government's $2.2 trillion
CARES Act
The Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, is a $2.2trillion Stimulus (economics), economic stimulus bill passed by the 116th U.S. Congress and signed into law by President Donald Trump on March  ...
, which set limits of $10 million per entity. On April 17, 2020, two of the company's subsidiaries each received $10 million.
[ These loans were meant for companies with 500 or fewer employees while Ruth's Chris employs more than 5,700.][ On April 24, 2020, it was reported that the loans would be repaid to the Treasury Department following the public controversy.
]
Acquisition by Darden Restaurants (2023 – )
On May 3, 2023, Darden Restaurants
Darden Restaurants, Inc. is an American multi-brand restaurant operator headquartered in Orlando, Florida. Darden has more than 1,800 restaurant locations and more than 175,000 employees, making it the world's largest full-service restaurant c ...
announced it was acquiring Ruth's Hospitality Group Inc. for $21.50 per share in an all-cash transaction with an equity value of approximately $715 million.
Lawsuits and discrimination
On multiple occasions and in several jurisdictions, Ruth's Chris has been the target of legal action for its treatment of staff, employees, and customers. In 2011, class action status was granted to female employees in a complaint that charged the company with pay discrimination, fewer promotions, and maintaining a "sexually-charged" environment.
In 2017, the company was accused of denying service to black customers, as part of a class action lawsuit. The charges stemmed from a Houston customer who was seated in a different dining area.
References
External links
*
Updated financials from Yahoo! Finance
{{Restaurants in New Orleans
Steakhouses in the United States
Companies based in Orange County, Florida
Restaurants established in 1965
Madison Dearborn Partners companies
Restaurant chains in the United States
Restaurant franchises
1965 establishments in Louisiana
Restaurants in New Orleans
Fine dining
Winter Park, Florida
Darden Restaurants brands