MARYVILLE, TN – Ruby Tuesday, Inc. today announced plans to “streamline the organization” and close as many as 95 restaurants – but Mason City’s location is doing fine and doesn’t seem to be involved in the downsizing effort.
Ruby Tuesday recently completed a comprehensive review of its corporate-owned restaurant portfolio and determined that it was in the Company’s best interest to close approximately 95 underperforming restaurants. These locations will cease operations by September 2016. As of May 31, 2016, Ruby Tuesday’s system included 724 restaurants, of which 646 were company-operated. This conclusion, followed a rigorous unit-level analysis of sales, cash flows and other key performance metrics, as well as site location, market positioning and lease status.
A call to the Mason City Ruby Tuesday restaurant confirmed that, indeed, the local eatery is a franchise operation, and a manger, Jim, told NIT that “all is well here, we are doing great.” Meaning, the restaurant is likely not part of the closures the company is referring to.
JJ Buettgen, Chairman of the Board, President, and Chief Executive Officer concluded, “The decision to close restaurants is a difficult but necessary step as we take aggressive actions to strengthen our organization. Performance at each of these locations, despite the loyalty of valued guests and the efforts of our dedicated employees, was not meeting expectations. Full-time and part-time employees impacted by closures will be offered positions in nearby restaurants where possible.”
Buettgen also commented, “Our fourth quarter was impacted by softness in the casual dining industry and increased promotional activity by our peers. Given that we expect the macro environment to remain challenging for some time, we are taking the necessary steps to change the trajectory of our business.”
Mason City’s Ruby Tuesday was under construction in fall of 2010 and opened soon thereafter. It has been a favorite of local diners ever since.
