An $11 ribeye might sound too good to be true, but Ruby Tuesday sure knows how to strike a bargain. It just might come at the expense of their employees...
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00:00An $11 ribeye might sound too good to be true, but Ruby Tuesday sure knows how to strike
00:05a bargain.
00:06It just might come at the expense of their employees.
00:09Getting your veggie intake is easy-peasy thanks to Ruby Tuesday's salad bar.
00:13But if you wish to nourish yourself with clean greens, then the sit-down chain is going to
00:17disappoint.
00:18While Ruby Tuesday supplies its garden bar with farm-fresh produce, none of it can be
00:22considered organic.
00:23The franchise doesn't hide this fact.
00:25If anything, it's been more than transparent.
00:28Former CEO JJ Butgen remarked in 2015,
00:31"...we are pretty focused on food quality, but not necessarily, at this point, on local
00:36organic."
00:37Although a study by the USDA Economic Research Service suggests that the price premium on
00:41organic products has mellowed out in recent years, it still costs a lot out of pocket.
00:46According to the USDA, vegetables that are organic can't be grown or manufactured using
00:51synthetics or procedures that cause ecological harm.
00:54The process is more specialized and requires more work to fulfill the demand, and the bounty
00:58accumulated at the end is far smaller than the industry norm, thus resulting in an increased
01:03sticker price.
01:05The former CEO didn't rule out the possibility of Ruby Tuesday ever going green.
01:09Rather, he noted that the chain would keep the potential in mind and wait to see if the
01:13trend would stick around.
01:15Since organic food doesn't appear to be going anywhere, we can safely assume Ruby Tuesday
01:19has chosen to prioritize frugality over procuring spinach grown without GMOs.
01:25Much of Ruby Tuesday's menu can stay relatively affordable because the sides are just plain
01:29cheap.
01:30Just looking at its menu online, you'll notice that none of them require extravagant seasonings
01:34or complicated cooking techniques, and the ingredients themselves are frugal to obtain.
01:39For example, zucchini costs $1 to $2 by the pound on average, according to the U.S. Department
01:44of Agriculture.
01:46Price for the chain's rice pilaf side is a whopping $0.82 per pound, and it's convenient
01:50that mashed spuds complement a steak dinner so swimmingly because potatoes are also easy
01:55to buy in bulk, averaging at $0.78 a pound.
01:59If you remain skeptical of the economical properties found in a Ruby Tuesday accompaniment,
02:03heed the words of this anonymous employee who once provided Daily Press with the recipe
02:07for the chain's potato salad.
02:09Essentially, the ingredients consisted of cheap kitchen staples, russet potatoes, green
02:14pepper, bacon, and chopped onion.
02:16Same thing for the dressing, which allegedly mixes humble components including celery salt,
02:21mustard, pepper, and classic mayo.
02:23By maintaining a low-maintenance approach to the garnishes, Ruby Tuesday can focus its
02:27dollars on the entrees that compose the main attraction of any sit-down meal.
02:31The meat, so to speak, is what people come for, so keeping the side dishes affordable
02:35allows for excess in other places.
02:38What draws customers to dine at a Ruby Tuesday over similarly-priced establishments?
02:42The salad bar.
02:44It's the reason why 80 percent of its clientele visit the restaurant in the first place, according
02:48to former interim CEO Lane Cardwell.
02:50Aiming to turn its slumping sales around in 2017, the chain decided to give its signature
02:55offering a refresh with dozens of fresh new fruits and veggies, creative toppings, cheese,
03:00and dressings, nearly doubling the size of its show-stopping salad bar.
03:04The new and improved garden bar sought to attract a younger crowd by modernizing the
03:08build-your-own concept to reflect current tastes.
03:11In addition to featuring a high number of toppings, the upgraded salad bar showcased
03:15artisanal ingredients and dressings made from scratch daily.
03:18On the surface, the decision to refine the salad bar is pretty simple.
03:22Ruby Tuesday decided to make changes to what the brand is already known for, that is, the
03:26customizable salad bar, as opposed to the riskier alternative of hopping aboard a new
03:30trend the restaurant has no prior experience dealing with.
03:34Additionally, it's a smart investment in terms of its competitive value.
03:38Cardwell described the garden bar to analysts as, quote,
03:41"...not something that can be easily replicated at other eateries."
03:45While the salad bar is Ruby Tuesday's moneymaker, there's two categories the restaurant leans
03:49on to increase sales — drinks and desserts.
03:52Former CEO J.J.
03:53Butgen commented on the efforts taken to expand the restaurant's selection back in 2015, saying,
03:59"...if you were to look at our brand versus some of our competitors, whether that's casual
04:03dining at large or a bar and grill, we under-index some of the others in both alcoholic beverages
04:08and desserts, so we're strengthening those offerings."
04:11According to Ruby Tuesday's website, Happy Hour discounts are offered daily along with
04:15$5 cocktail specials, seasonal selections, and cheap upgrades for a bigger beverage.
04:20The bar serves major beer brands, both domestic and imported, and also caters to health-conscious
04:25diners with low-calorie versions of popular cocktails.
04:28As for dessert, the main menu features standard fare like ice cream sundaes and cookie skillets,
04:33yet it also embraces seasonal flavors from time to time.
04:36As guaranteed crowd-pleasers, the lure of baked goods and booze will ensure Ruby Tuesday
04:41makes a killing night after night.
04:43And unlike some of the main entrees, they're easier to serve in large quantities.
04:47Since many patrons are already in the mood to cap off their gorge-fest with a pint of
04:51Guinness or chocolate lava cake, Ruby Tuesday might as well give them what they want.
04:56The next time you hit up Ruby Tuesday for dinner, take note of your surroundings.
04:59Chances are high that you are feasting at a mall location.
05:02Operating in shared lots was a strategy Ruby Tuesday implemented in the 1990s to offset
05:07the real estate costs that come with standalone facilities.
05:11And this remains true even in the face of fewer locations standing today.
05:14There are over a dozen active restaurants at shopping plazas in New Jersey, Florida,
05:18Georgia, and more.
05:20The rationale of gathering a variety of eateries within close range is fairly straightforward
05:24— less money will be spent.
05:26Because financial upkeep of the complex is split between multiple franchises, the cost
05:30of running a restaurant — including kitchen equipment, heating, utilities, etc. — can
05:35be slightly lowered just by sharing the bill.
05:38Restaurant owner reports that the average brick-and-mortar eatery spends $5,000 a month
05:42on rent alone, so every penny does count.
05:45Fear of competition could sway some restaurants from going the communal route, but the upside
05:49of sharing space with other businesses?
05:51It levels the playing field.
05:53Customers benefit by having more dining options to choose from, and the restaurants who participate
05:57benefit from not having to spend as much money on necessary, although costly, expenditures.
06:02It's a win-win for everyone involved, and nothing wins more than a Ruby Tuesday customer's
06:06wallet.
06:08Working in the service industry can be a rewarding experience for many, but anybody who's been
06:12hired by a bustling chain restaurant knows how underwhelming the paycheck can be.
06:16Low wages seem to be a frequent explanation lurking behind any restaurant discount, because
06:21it usually is.
06:22And Ruby Tuesday is far from an outlier in compensating its workers with the bare minimum.
06:27Zipia found that a typical employee will only make $13.20 an hour, with workers at
06:32the bottom taking home around $17,000 annually, if that.
06:37It's true that Ruby Tuesday employees across the board aren't paid much, but no one gets
06:40the shaft quite like tipped workers.
06:43A former Ruby Tuesday bartender explained on Reddit how workers who subsisted off of
06:47gratuities had to participate in tip pooling, a practice where tips are summarily split
06:52between workers during a whole shift, as opposed to each worker pocketing all of their own
06:56Breaking down the hours worked and tips accumulated, they found that a shift could result in less
07:01than $2 per hour in tips.
07:03As they explained,
07:04"[The company charges more than $2 for something as simple as a flavored iced tea, and although
07:09I may make dozens of drinks in an hour, I am not even being paid the cost of one of
07:13those drinks."
07:14While Ruby Tuesday was revamping its garden bar, it was also doing away with 30 percent
07:19of its menu.
07:20As the Florida Times-Union reports, reducing the number of entrees was much more than a
07:24simple cost-cutting maneuver.
07:26The decision was made to help the restaurant chug along faster in serving customers, which
07:30also carries the advantage of reducing messed-up orders and altogether improves the chances
07:34that happy diners will come back.
07:36Ruby Tuesday has always thrived off variety, but serving a wide array of choices doesn't
07:41necessarily mean that customers will feel compelled to order them.
07:44Cooks are expected to prepare a variety of meals, with waitstaff shouldering the labor
07:48of serving those dishes to customers in a prompt manner.
07:51A barrage of different entrees can drastically slow down the pace of a high-traffic eatery,
07:56particularly during peak hours, so having fewer options makes the job much easier for
08:00the workers involved.
08:02The food will also be much fresher and less at risk of going to waste.
08:05Although it's tempting to believe phone book-sized menus will inspire enthusiasm among diners,
08:10it's not feasible for Ruby Tuesday if it wants to keep its budget in order.
08:14Trimming down the menu is the only way diners can enjoy bargain prices.
08:18Ruby Tuesday unveiled a spinoff concept in 2021 called Libby's Barbecue, with a focus
08:23on smoked meats and picnic sides.
08:25The kicker?
08:26Libby's Barbecue has no standalone locations, and it's only available through delivery apps.
08:31Virtual brands have been a big focus for Ruby Tuesday following its financial struggles,
08:35and for good reason, too.
08:37How so?
08:38They're cost-effective.
08:39To create a virtual brand requires no additional investments in a physical space.
08:44So long as there's a kitchen, equipment, and workers to assemble orders, the need for a
08:48storefront is basically moot.
08:49Ruby Tuesday already has the real estate at its disposal, plus over 32,000 employees in
08:55its orb to make items off both the Libby's Barbecue and Ruby Tuesday lineup.
08:59Additionally, menus tend to be more limited in scope than full-scale eateries, which means
09:04fewer ingredients — and workers — are called for to prepare them.
09:08And at the end of the day, virtual concepts mean more offerings for customers, which only
09:12serves to drive profits if done right.
09:15Gone are the days of having to shell out thousands for TV advertisements.
09:19Thanks to the internet, Ruby Tuesday has been able to shift its marketing strategy focus
09:23to promoting its brand on Facebook, Twitter, and Instagram instead.
09:27And it's been a success.
09:28According to Chief Marketing Officer Dave Skina, establishing an online presence made
09:33advertising much easier because of the direct yet accessible nature of social media.
09:38What exactly inspired Ruby Tuesday's shift towards social media marketing?
09:42Certainly, it would be foolish for companies not to take advantage of the medium,
09:46as smartphones practically run our lives.
09:48But for Ruby Tuesday, it wasn't just to keep up with the Joneses.
09:51Digiday reports that its top demographic — young mothers with kids — were opting
09:56to consume content on social media over more traditional forms, such as TV.
10:00Besides that, utilizing social media sites made more sense for the brand's size,
10:04as unlike McDonald's and Starbucks, Ruby Tuesday's appeal is regionally grounded,
10:09specifically on the East Coast.
10:11A well-timed tweet or Facebook graphic can spread faster and with more efficiency than
10:15a TV commercial.
10:16And compared to the cost of making commercials, a social media post is downright minimal.
10:21With less to spend on advertising, it's reasonable to assume the company can focus
10:25on delivering extra savings to its customers.
10:27And at the end of the day, more people will find out about Ruby Tuesday's jaw-dropping
10:31discounts, and it will have cost barely anything to accomplish.
10:35It's something Ruby Tuesday does well.