Ruth’s Chris Steak House

Positioned more as a brand than a chain, this decades-old steakhouse relies on high-quality, classic dishes and superior customer service to secure its timelessness.

By Lisa White, Contributing Editor -- Foodservice Equipment & Supplies, 9/1/2007

Even with 106 restaurants and a dozen more on the way, executives at Ruth's Chris Steak Houses continue to position this fine-dining mainstay as more of a brand than a chain.

Geoffrey Stiles, COO and senior vice president, says this is part of his operation's goal to be the local favorite steakhouse in each community it serves. "When we create our restaurants and design them, we want them to be a bit different to avoid that chain feel. It is a deliberate choice to create variety in our design," he says.

Still, Ruth's Chris never strays far from its New Orleans roots or its founder Ruth Fertel's vision. A divorced mother of two looking to make ends meet, Fertel purchased Chris' Steak House for $18,000 back in 1965. A former lab tech at Tulane University, she enjoyed cooking, but had no restaurant experience.

In fact, when Fertel visited a banker to mortgage her home for the necessary funds, he had to inform her that she would need extra cash for supplies and to help market the concept.

On paper, it was a risky move. The previous owner, Chris Matulich, had sold his restaurant six times and repeatedly bought it back at bargain prices when the new owners either failed or gave up. What Matulich did not count on was Fertel's tenacity. This was no surprise coming from a woman who graduated high school at age 15 and earned a chemistry degree from Louisiana State University at only 19.

A setback occurred after only three years in business, when a fire forced Fertel to move her restaurant a couple of blocks away. Although the location was similar, the bill of sale prohibited use of the former name. With only a week to decide on an alternative, Fertel simply added her first name to the front and the first Ruth's Chris Steak House was created. "She simply did not want to alienate her loyal customers by changing the name [too dramatically]," explains Stiles, adding that the name's uniqueness has helped endear the restaurant to patrons.

In fact, the name is so well-known in New Orleans, that its police force will use it to test the sobriety of suspected drunken motorists.

Fertel's original intention was to open only a couple of restaurants in New Orleans and franchise her concept in any town with an NFL team. However, this plan was derailed in the 1980s, when major expansion efforts were launched and executed.

Today, this publicly traded steakhouse business has an equal number of company-owned and franchised locations.

Even though Fertel passed away six years ago, her philosophy of balancing the relationship between price and value remains a big part of Ruth's Chris' culture. "She felt that a customer's experience in her restaurant will justify the higher prices," Stiles explains. "Back in the '60s, many New Orleans restaurants changed over to a club status so they could exclude minorities. Instead of going with the flow, Ruth created a restaurant that was accessible to everyone. She treated all customers the same, no matter what their background, gender or race."

Along with its high level of customer service, Ruth's Chris takes pride, and is well-known for its decadent steaks. Its USDA prime beef originates from corn-fed cattle out of the Midwest. "Only 2 percent of beef in this country is corn-fed, and our patrons consume a large portion of that," Stiles says. This high quality produces a moist, flavorful steak that needs minimal seasoning.

While 85 percent of its entrées are beef, the remaining 15 percent is split between seafood and poultry dishes. "Because most of our guests like variety, our menu has expanded significantly. Our chefs now have the ability to provide signature seafood dishes, which rival those at the top seafood restaurants," Stiles says.

Even with this expansion, Ruth's Chris' menu remains straightforward and simple. "This is so we can focus on a smaller number of items and do them very well. One way we are able to justify our prices is because we buy the very best ingredients we can purchase," Stiles says.

Although the average-size restaurant is about 8,500-square-feet, newer locations run closer to 10,000-square-feet. The bar consumes much of this extra square footage. This "luxury lounge" concept, which was created in 2004, offers a gathering space for small groups and individuals. "We find that our guests have a higher expectation when it comes to the bar environment. Many times, these customers' restaurant experience either begins or ends in the bar. Also, since about a third of our customers are business travelers, the bar area is where they are most comfortable, especially if they are dining alone," Stiles explains.

Even though most Ruth's Chris locales seat about 250, that's where the similarities end in the front of the house. "Each of our restaurants is a little bit different, and that's done deliberately. We try to tailor a bit of local history and weave that into our décor," Stiles says.

The New Orleans touch is evident in the restaurants' architectural elements, yet each location has décor that is customized to the local communities they serve.

Unlike some restaurants of this genre that deal with thousands of guests a night, a Ruth's Chris location services an average of 1,600 guests each week. "Almost half of our guests are women, so we try to create an environment that is not too male-oriented," Stiles says. This includes the use of lighter woods as opposed to dark. Interiors also include bright, vibrant and soft color palates.

Like the menu, the kitchen layout and equipment list are simple and straightforward. An exception would be the customdesigned broilers that Fertel helped create. These pieces of equipment cook steaks at 1,800°F. "This process is unique to our business. It sears the outer portion of the steak, locking in moisture and flavor," Stiles says.

Separate ovens heat plates to 500°F., ensuring the meat, which is finished off with butter and parsley, remains hot. "Our beef has an amazing flavor profile. It is seasoned with just salt and pepper. We don't use marinades," Stiles says. "This has worked so well for us and has been well-received by guests. It is the foundation of our organization."

Ruth's Chris' core recipes are followed closely by its chefs. "When we talk about the fundamentals, one of the most important is the consistency we can deliver to our guests in both food quality and experience. The broccoli au gratin is the same, whether it is served at our restaurant in Seattle, Taipei, Manhattan or Huntsville, Ala. We use identical raw products," Stiles says.

This is not to say that challenges don't exist with this system. Stiles acknowledges the difficulty in obtaining the same fresh products in many parts of the country, especially when it comes to seasonal ingredients. "Heavy winters and storms can change supply. It can be challenging to buy product that is exactly the same for all of our restaurants. Fortunately, we can usually spec and obtain the items we need," Stiles says.

In terms of the kitchen, equipment package investments differ per location, but average $350,000. The square-shaped kitchens have a limited prep area, since knife work and portioning represent much of this process. Instead, the line consumes most of this space and serves as the final point of meal assembly and delivery before the plate reaches the dining room.

"Overall, when you examine our kitchen layouts, they are similar and simple. This gives us the ability to make sure everything is done at a high level," Stiles says.

The dish area and cooler space comprise 30 percent of the kitchen. The main line and pantry area comprise the majority of the back of the house. The kitchen typically encompasses a couple of broilers, in addition to three to four ovens for prep and plate heating. Two fryers perform limited tasks and focus on one product so flavors are not intermingled. "The amount of frying we do is very limited. Most of our items are either broiled or sautéed," Stiles says. The latter is accomplished using the ranges that vary in size between eight and 10 burners.

Two salamanders cook delicate items and brown others. For storage, the restaurants employ two walk-in coolers - one for prepped product and the other for meat. A walk-in freezer and smaller freezer on the line also serve as storage. Stiles notes that, due to the amount of fresh product, the line and undercounter require a large amount of refrigeration. "We also have rolling racks at the service lines. These are used for transporting meat from the walk-in coolers to the reach-ins," he explains.

Despite its success and longevity, Stiles says Ruth's Chris will not rest on its laurels. In addition to its expansion plans of between 12 and 14 restaurants this year, the company will experiment with a "power lunch" concept. This summer, about half its locations will be open for lunch on Fridays.

Stiles says management may examine the possibility of a secondary brand in the future, but that is not a priority. "Our real focus is expanding our core concept. With more than a dozen restaurants opening in the next year, I can foresee us having 200 to 250 locations domestically," he says.

There also has been an increased focus on Ruth's Chris' international presence. The chain operates restaurants in Asia, Canada and Mexico, with an operating agreement in Central America. "We are looking hard at Europe, Australia, Dubai and additional franchises in Canada. There is a lot of future potential. Growth is the oxygen of a healthy organization," Stiles notes.

Although operating under the same values as it did back in the '60s, Ruth's Chris has obviously discovered the formula for success. Its timeless menu and focus on customer service have made its name synonymous with quality and class.