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Steakhouse Surprise: Ruth's Chris Unveils Major Changes Under New Management

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Major changes are coming to Ruth's Chris Steak House, a well-known steak-lover place.

The restaurant is now under new owners and plans to shake things up. These changes are expected to make a real difference to the customers' dining experience, showing that the steakhouse is ready to try new things and improve how it serves its guests.

Ruth's Chris Steak House, renowned for its premium, broiled steaks served on sizzling-hot plates, strikes a unique balance in the dining scene. It's neither casual nor excessively formal, offering a comfortable yet upscale atmosphere.

With its 155 locations globally, this steakhouse chain is a significant player in the American beef industry. The chain's distinctive red-and-white signage, prominently featuring the label "U.S. Prime" to emphasize its commitment to top-tier beef, has become a familiar landmark.

This is particularly true in many suburban communities across the United States, where Ruth's Chris has established a strong presence.

Ruth's Chris Steak House Major Changes Due to New Ownership

Significant changes occur at Ruth's Chris Steakhouse, a well-known steakhouse chain. Recently, the Florida-based Darden Restaurants, known for running Olive Garden and other famous restaurant chains, bought Ruth's Chris.

This new ownership quickly brings new ways of doing things to the steakhouse.

Darden, which took over Ruth's Chris in the summer, is already planning significant updates. The company shared plans in September to invest $10 million in the steakhouse's locations. Of Ruth's Chris's total spots, 78 are owned by the company, while franchisees run others.

Rick Cardenas, the President and CEO of Darden, shared some exciting news with investors on Friday. He revealed that many changes at Ruth's Chris Steak House are underway. It includes a significant update to a favorite steak choice - the filet.

Cardenas mentioned this improvement during an earnings call but didn't give more details. He also noted that this new filet isn't available at every location.

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Major Changes at Ruth's Chris Steak House

People eating in a restaurant
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Cardenas recently announced several significant changes at Ruth's Chris Steak House. One of the notable changes is the end of home delivery. The steakhouse used to deliver its steaks and chops through DoorDash, Uber Eats, and GrubHub. But now, Darden has decided to stop this service altogether.

Cardenas mentioned that delivery doesn't bring much advantage to the company. They prefer to focus on orders that customers pick up themselves. He explained that the performance of restaurants offering third-party delivery wasn't much different from those that didn't.

He added, "We are confident in our decision to avoid third-party delivery."

Another change affects lunchtime diners. Cardenas said the company is cutting out lunch service wherever possible, though he didn't specify the reasons.

Additionally, most Ruth's Chris restaurants will be closed on Christmas Day, aligning with the practices of other Darden-owned eateries like Olive Garden, which closes on Thanksgiving and Christmas.

These changes come as Darden reported $2.7 billion in total sales in the last quarter, a 9.7% increase from 2022. This growth is partly due to adding Ruth's Chris and 45 other new restaurants to Darden's portfolio."

Meanwhile, Ruth's Chris Steak House carefully selects new expansion nations based on their primary clientele. Beef consumption in these countries is essential to this decision. The steakhouse's earnings and success depend on how many clients like beef.

The company examined average beef consumption in different countries. It helped them see where steakhouses are famous. Another significant influence is these countries' average income. Ruth's Chris needs to know eating is affordable. They considered dining out costs.

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