Ruth's Chris: International Expansion

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Ruth’s Chris: The High Stakes of International Expansion Case Study By Efren Lejano Table of Contents I. Situation Analysis Page 3 – 4 II. Marketing Strategy Solutions Page 4 – 6 III. Summary Page 7 IV. Appendix Current Financial Analysis Page 8 Income Statements Page 9 I. Situation Analysis Problems and Issues of Expansion Ruth’s Chris Steak House is one of the most well known and established fine dining steak houses in the U.S. Its popularity spreads across the world for serving high quality steaks and providing outstanding customer service. Ruth Fertel started the restaurant in New Orleans, LA back in 1965. Since then, the restaurant saw explosive growth in three decades from one humble restaurant to ninety-two, 82 in the US and 10 international locations in Canada, Mexico, Hong Kong and Taiwan. By far, the restaurant has the most locations in the fine dining steak house industry category beating its closest rival by nearly 30 locations. Enjoying its success, The company decided to go public with an IPO offering in 2005 that raised over $154 million in new equity capital. As expected, the company now faced high expectation of increasing share holder equity through expansion and profitability. Dan Hannah, vice president of business development was responsible for development of a new business strategy focused on continued growth of the company owned restaurants as well as franchisee owned. He saw major opportunities in expanding abroad and regularly fields inquiries from prospective franchise owners around the world. For the company to succeed in its expansion plans, it must decide on a marketing plan, answer some critical questions and resolve some issues. Hannah and his team decided on two marketing strategies; market penetration and market development. Market penetration was already implemented and new

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