Essay Ruth’s Chris Steak House
How should Ruth’s Chris Steak House meet its revenue growth targets? Be sure to support your recommendation with specific details of how you would carry out your recommendation.
Ruth’s Chris is an American chain of restaurants implanted in five countries: 3 in the Americas (USA, Canada and Mexico) and 2 in Asia (Taiwan and Hong Kong). This restaurant proposes prime quality meats from the USA. The average price of meal is around $70 so the target is high income customers.
Ruth’s Chris Company wants to increase its revenues. For that, the company can implement one of the four strategies of Ansoff matrix.
The penetration strategy consists in implementing more of the same restaurants in the …show more content…
To increase its revenues, Ruth’s Chris Restaurant should go in countries where there is a high urbanization rate. Indeed, in urban area we can easily implement restaurant and have a large clientele. Furthermore, in urban area people are more often richer than in countryside, so it corresponds to our target group with high disposable income (high PPP).
We should also choose countries where people dine out regularly. It seems that in Asian culture, people are used to dine out more frequently than in Europe for example. It is not rare to go out every day in Asia although in Europe people dine out much less often.
“Ruth’s Chris” is an American name so it shows image of an American brand. In anti-United States countries or in countries where population doesn’t like American culture it should be difficult or impossible to make business, so we don’t have to select these countries.
Of course, one of the main criteria to choose which country we want to implant new restaurant is the beef-eaters criteria. If population of a country doesn’t eat or doesn’t like beef, we should eliminate it.
In consideration of these criteria, we should expand in Asia (Singapore, Shangai, Beijing, Seoul, Tokyo…), in Brazil and in Dubai, where the per capita income has significantly raised, people are embracing some