In 1972 Ruby Tuesday Inc. introduced their first restaurant in Tennessee (Ruby Tuesday Inc. 2014). Having a humble beginning of just 16 restaurants, the company has now grown to over 300 locations. These restaurants are located throughout the United States in the regions of the Southeast, Midwest, Mid-Atlantic, and Northeast. Besides their primary domestic market, they have also expanded to 19 other countries.
Distribution Channels
Ruby Tuesday Inc. is an international retailer that operates, owns, and franchises Ruby Tuesday restaurants. For the past 42 years Ruby Tuesday Inc. has built a reputation around their bar and grill. Although, Ruby Tuesday Inc. now operates in their bar and grill through the segments of the casual dining. …show more content…
In other words, to get the product from the supplier to the restaurants, Ruby Tuesday Inc. uses third party outsourcing to store and deliver purchased goods to the restaurants for use. Ruby Tuesday Inc. selects locations in both rural and metropolitan areas located in the Southeast, Midwest, Mid-Atlantic, and Northeast. Their target markets are individuals between the demographic ages of 25 and 55 with a middle class income. Thus, Ruby Tuesday locates their restaurants in visible sites in order for customers to easily see their location spots (Guidelines for Restaurant, 2015). Furthermore, Ruby Tuesday Inc. uses proximity to draw large crowds such as shopping centers. For example, at Westbury Plaza, NY there is a “well establish power center anchored by Costco and Wal-Mart” (Equity One Inc. 2015). One of the major tenants is Ruby Tuesday. The location is located at Old Country Road, which has population size of 12,752, with an average household income of $97,959. The daytime population size is 407,106. This indicates that Ruby Tuesday will desire to open its restaurants nearby the established stores such as Costco, Wal-Mart and Marshalls. As a result, Ruby Tuesday Inc. will get an advantage from the daytime population within those traded areas. Below is a diagram that describes the channels that Ruby Tuesday Inc. uses to reach the end …show more content…
This shows that Ruby Tuesday Inc. is not located near major metropolitan areas due to high competition in the Los Angeles areas (Ruby Tuesday, 2015). Secondly, Ruby Tuesday’s target market is focused on family and/or casual dining. For instance, there is a Ruby Tuesday restaurant located in Orlando, FL with approximate census population of 14,960 and average household income of $54,341 between the age groups of 25-55 (Demographic Summary Report, 2013). They have taken the marketing strategy of trying to locate its restaurants to serve higher end customers. However, due to negative company performance this strategy has been adjusted to serve a broader demographic (Harrington, 2013). This includes having locations in more densely populated regions than there were previously. Ruby Tuesday Inc. will therefore conduct market research ensuring customer demographics, visibility, and proximity to competitors meets the needs of the