The statement was released following a request by rrspin to determine whether the Roanoke Rapids location is slated for closing.
“Our Fresh Start Initiative is designed to improve our financial profitability and ultimately create a stronger Ruby Tuesday for the future,” the statement said. “While the decision to close restaurants has been extremely difficult, it is a necessary step as we take aggressive actions to strengthen our organization.”
Said the statement: “We will be sharing the information on specific restaurant closures in the coming days. We look forward to continuing to serve our loyal guests at our many other Ruby Tuesday restaurants across the country.”
The Fresh Start initiative comes after the company announced fourth quarter and fiscal year 2016 financial results for the periods ended May 31, 2016.
The company also provided a fiscal year 2017 outlook and announced plans to streamline the organization, improve financial profitability, and create long-term value for shareholders through its Fresh Start initiative.
“The Fresh Start initiative will be achieved through the execution of several key strategies including an Asset Rationalization Plan along with programs to improve the food and beverage offering, dining environment and service at its namesake brand through a fresh new menu, fresh new garden bar, and fresh experience. These initiatives will be rolled out in phases across multiple markets throughout the coming quarters.”
JJ Buettgen, chairman of the board, president, and chief executive officer, said in a nationally released press statement, “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.Our Fresh Start Initiative has been designed to streamline our organization through asset rationalization, improve financial profitability, and ultimately create long-term value for shareholders.”
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.
As of May 31, 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.
Said Buettgen: "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.”