Second fiscal quarter results and a need to re-organize its image for future profit is forcing Ruby Tuesday to close 30 of its restaurants a press release reported Wednesday.
Fifteen locations will close after their lease is up the press release reported. Twenty-seven restaurants will lock up for good in the third fiscal quarter, with another three shuttering in the fourth fiscal quarter according to the press release. Eight other locations will hit the commercial real estate market following the closing the press release reported.
"We are committed to our brand transformation strategy and in building on this early momentum," JJ Buettgen, Chairman, President and CEO at Ruby Tuesday said in a statement. "A critical piece of our brand transformation is lowering our overall cost structure and we will continue to aggressively work toward implementing cost savings in areas that do not negatively impact the guest experience," Buettgen said in the statement. "Our teams' top priorities are to increase guest counts and grow same-restaurant sales. We believe the path to this success is through a menu that is innovative and affordable; service that delivers a solid guest experience in an atmosphere that is fun and energetic; and communicating with effective advertising and promotions that bring the brand transformation to life and reshapes consumer perceptions of the Ruby Tuesday brand," Buettgen said in the statement.Ruby Tuesdays had a $4.4 million impairment charge for no money before taxes in the second fiscal quarter the press release reported. The franchise restaurant chain anticipates $2 million in extra costs in the third fiscal quarter including lease savings, and additional closing expenses the press release reported.
Ruby Tuesday has 800 restaurants it either owns or franchises out according to information its website. The restaurant company has over 40,000 employees in its corporate offices and franchise locations the company's website reported.
