Fifty employees at Ruby Tuesday headquarters in Maryville got a rude holiday surprise yesterday: pink slips. The front page of the Maryville Daily Times has a photo of a Maryville PD patrol car stationed outside Ruby Tuesday HQ to provide security.
The company says this is the first step of a "comprehensive review of its cost structure." They have "restructured corporate support services and reduced operating expenses through workforce reduction," eliminating 50 jobs at the Maryville Restaurant Support Center. The company expects the cuts to save $6 million annually.
They are also "working with a leading enterprise improvement consulting firm to assist with additional cost reduction initiatives focused on cost of goods sold, restaurant operating costs, and other general and administrative costs."
It seems odd that they would need an outside consultant. Just a year ago they hired a top level executive from Darden to replace outgoing (ousted?) founder and CEO Sandy Beall. What are they paying the new guy $9 million for?
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Homegrown local business, hate to see them struggle
But its a big company now and it takes millions in cost cuts to move that needle down there on the bottom line.
Hopefully, they'll get back to the quick casual menu for burgers and the salad bar and back away from the brass and fern restaurant model which is in space they can't compete in or can't make money in.
Most truly successful restaurant operators can tell you to the penny what their costs are in the plate of food you were just served. Hopefully Ruby's can figure that out as well and get back to the basics.
Poor taste
If there was a security issue, the picture would have been warranted. Add that detail or omit the picture.
As for Ruby, Darden has successful restaurants. And a HQ in Orlando. Next to the Ritz and the nation’s most popular private park.
What they didn’t have is a surplus of real estate locations at a vast number of interstate exits, but now they do.
This acquisition, for Darden, was about real estate. Maybe I’m wrong, but don’t be surprised when Longhorn’s and Red Lobster’s start popping up where RT’s used to be.
Acquisition? That wouldn't
(in reply to Average Guy)
Acquisition? That wouldn't surprise me but I don't think it has happened? I said at the time they hired this new CEO that he might be an advance inside man...
Bad wording on my part
Probably should have stuck with interest or involvement.
$120,000?
The average cost of 50 employee laid off was $120,000? No wonder they are in financial trouble!
50 employees could mean a
(in reply to Local Citizen)
50 employees could mean a building or a significant part of one. Supporting those employees cost money and whatever they were doing cost money, so it's not all salaries.
They're struggling because it
They're struggling because it seems nobody teaches cooking at business schools, but yet their menus and recipes all seem to be produced in the accounting department.
If they want to quit circling the drain, they'll banish the word "product" from their lexicon, and bring some chefs to HQ who want to cook food, and give them complete authority to create the recipes and menus. Next, tell all the MBAs they have to take exactly what the chefs give them and figure out the pricing and logistics to get the necessary ingredients out there. (Maybe throw them a bone and get them excited about figuring how much they'll save by getting rid of all the micowave ovens.) Finally, once all that's in place, give it to the marketing people to create a "come back, we've started serving food again" campaign.
Oh, but somebody does teach
(in reply to Somebody)
Oh, but somebody does teach cooking at business schools. They insanely overcook the English language.
And
(in reply to redmondkr)
And sometimes the books.
The old menu seems to be why
The old menu seems to be why everyone left, doesn't the RT board not follow the blogs? It's was number one restaurant after a movie, until I couldn't get a Mushroom Swiss Burger with their great mushroom gravy. We would visit every few month in hopes the our favorites would return. It took a about three years before we gave up.
More layoffs
Sources tell 6 News 16 people were laid off Wednesday, mostly from Ruby Tuesday's IT department.
I think Ruby Tuesday's would
I think Ruby Tuesday's would be much more successful if they served food.
Ruby Tuesday has lots its
Ruby Tuesday has lots its chance. I hate that but they have just gotten lost in the corporate shuffle.