Food Service Growth in the Hispanic Millennial Market
LabBTeam2_POV_BeaupreBixbyFletcher
1. To: Kim Long
The Richard’s Group
Introduction
Ruth’s Chris faces a challenge with its aging consumer base. The average consumer at Ruth’s Chris is over 35 and
eats at fine dining restaurants 3-5 times a year. Ruth’s Chris has an opportunity with older, affluent millennials. In fact,
11 percent of 25-34-year-olds visit fine dining restaurants once a month and 35 percent have dined at a fine dining
restaurant in the last three months.
The target market’s negative view of chain restaurants stunts Ruth’s Chris’s opportunity. Through our research, we
discovered the target is more willing to visit a local restaurant than a chain restaurant. During our interviews, our team
uncovered a perception problem: younger consumers have not heard of Ruth’s Chris or they view it as an unenergetic,
boring restaurant.
There are certain aspects of Ruth’s Chris that differentiate the restaurant from other chains. For example, the
restaurant decor and interior design are different at each location. This allows for an aesthetic that is better catered to
the city it is located in. Additionally, the personal story of Ruth Fertel having the determination to keep the restaurant
running after unfortunate events like a restaurant fire adds a rich history. Many customers do not know about Ruth
Fertel. Through conducting primary research, we were able to determine Ruth’s story resonated with interview
participants, going as far as inspiring them to give the restaurant a try.
Ruth’s Chris is also competing with more successful competitors such as Capital Grille, Fleming’s and Morton’s for the
same target market. Respondents view Ruth’s Chris as a generic corporate chain and were more likely to consider
other restaurants.
Additionally, Savvy Savorers take pride in using their resources like Yelp or peer recommendations to see what their
city has to offer. When they dine out for a special occasion or explore a new place with their friends, they aren’t
looking to visit a chain restaurant. Because many Savvy Savorers are unfamiliar with Ruth’s Chris, unlike other chain
restaurants like Olive Garden, they have the opportunity to introduce themselves as a sought after restaurant
destination. Our recommendations will help solve this pressing concern.
New Target
To combat the aging customer base, we suggest moving away from the current target market to concentrate on older,
affluent millennials ages 26-34. We have decided to name this target “Savvy Savorers.” A Savvy Savorer is savvy with
their finances and their resources. They are educated professionals living in urban areas and advancing quickly in
their careers. No longer inhibited by finances, Savvy Savorers value their ability to seek out new places so they can
share it with their friends. To them, a meal is more than a meal. A meal is an experience that should savored and
shared.
Governing Thought
Ruth’s Chris needs to position itself as a trendy, local hangout where Savvy Savorers can visit for an enjoyable social
setting. By focusing on ambiance through interior design, emphasizing a unique personality through their company
history and hyper localizing restaurant events, Ruth’s Chris can combat their current corporate-esque image.
Point of View
Jacob Beaupre, Kylie Bixby, Caitlin Fletcher
2. Recommendations
1. During our qualitative research, interviewees said Ruth’s story was both interesting and important. Several
participants mentioned that Ruth’s story evoked a favorable brand image. One respondent said, “When I heard the
words Ruth’s Chris Steak House, I pictured a chain restaurant like Applebee’s. After learning about the history, I would
love to try it some time.” The history made Ruth’s Chris feel like a local staple instead of a bland, corporate chain.
However, most interviewees were not aware of the history behind Ruth’s Chris.
2. Hosting events at Ruth’s Chris can pay dividends for the brand. A local event can spark consumer curiosity and
media attention. If it is a charitable event, the brand can acquire goodwill from those in the local community. However,
it needs to be authentic to local consumers. If it does not seem authentic, the efforts will backfire and alienate local
consumers. Ruth’s Chris should choose charitable events that are relevant to the consumer and to the brand. Hosting
events would reinforce Ruth’s Chris’s personality and communicate their values. In doing so, Ruth’s Chris will seem
more like a local hangout than a corporate entity.
3. Unlike many chain restaurants, Ruth’s Chris does not have a uniform decor. We believe that keeping this lack of
uniformity would help the brand retain a local image and inspire locations keep their unique personalities. While it is
still a chain, a local Ruth’s Chris that does not look like other franchises creates distance from the national brand.
Emphasizing the unique characteristics and tailoring décor to the city will cement the idea that Ruth’s Chris is part of
the community. The fine dining establishment is not an inauthentic corporate implant that is an outsider to the local
community.
Support
Going out to a restaurant isn’t just about the food. A range of other factors influences the consumers’ decisions. Food
alone can no longer make up for a lackluster atmosphere or subpar service. Every part of the dining experience has to
live up to the target’s expectations. They take everything about the restaurant into consideration, such as a good wine
list or how efficient and personable the servers are. In addition, a lively scene or a relatable personality is important to
Savvy Savorers. 40% of consumers say that a restaurant being local and independent is an important factor in their
decision and only 38% of millennials trust large corporations. They don’t want to dine at a boring restaurant that feels
stagnant. They want a place to relax with friends and enjoy leisure time in a trendy atmosphere that doesn’t feel cold.
A restaurant that unapologetically offers its own spin on dining out is incredibly important when it comes to attracting
the new target. Ruth’s Chris can leverage our target’s preference of local restaurants by emphasizing their history,
unique design, phenomenal service and involvement with the local community in hopes to meet Savvy Savorers
demands and expectations.
3. Works Cited
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http://academic.mintel.com/display/482492/?__cc=1
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http://academic.mintel.com.proxy.mul.missouri.edu/display/747842/.
Schawbel, D. (2015, January 20). 10 New Findings About The Millennial
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http://www.forbes.com/sites/danschawbel/2015/01/20/10-new-findings-about-the-
millennial-consumer/2/#633f0c9342b8