Ruth Chris Market Development Model

Decent Essays
Ruth’s Chris is a steak house that has been franchised all over the world, with a consumer recognizable name that is widely popular for their brand and calling. Ruth’s Chris began in 1965 when Ruth Fertel mortgaged her home and bought a steakhouse that had 60 seats called Chris Steak House in New Orleans (Peter & Donnelly, 2013). Twelve years later, in 1976, the restaurant suffered a kitchen fire and was destroyed. Ruth had the drive not to let that destroy what she loved. She purchased another property shortly after and called it Ruth’s Chri. One of her regular customers convinced her to allow him to franchise the restaurant, and by the 1980’s Ruth’s Chris was a global brand. Ruth’s Chris targets business professionals, and well to do beef eaters in their local markets (Peter & Donnelly, 2013). Ruth’s Chris Steak House has always put a focus on families and local patrons…show more content…
After exploring the four different models, the market development model is best aligned for them to succeed, more of the same restaurants in new markets. When they realized this was the model that needed to be followed, they altered the way they market and who they market too. First, they market to the Beef-Eaters, those looking for high end prime products. Their primary customers enjoy beef. Second, they have to market to places that are able to have U.S beef imported to them. Third, the average cost for just an entrée is $70, so they need to market to people with high-disposable income (Peter & Donnelly, 2013). Competitors Ruth’s Chris has two main competitors. Morton’s and II Fornaio (Bhosale, 2016). Ruth’s Chris still controls a majority of the fine-dining business because they have almost double the amount of restaurants compared to their competition. Ruth’s Chris continues to be innovative and is always trying to become a better company (Bhosale, 2016). Factors for Success/Improvements to be
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