The Ruth’s Chris Steak House chain is being acquired by Darden Restaurants for about $715 million.
The original Chris Steak House opened on New Orleans’ Broad Street in 1927, and became a long-standing NOLA tradition. In 1965, Ruth Fertel, a divorced mother of two, mortgaged her home for $22,000 to buy the small 60-seat restaurant. Shortly thereafter, a fire forced her to change the original location and she renamed the restaurant, “Ruth’s Chris Steak House.”
Despite her lack of restaurant experience, Ruth’s enthusiasm and determination made the restaurant a greater success than even she had anticipated. In 1977, at the urging of a loyal customer, Ruth granted her first franchise just outside Baton Rouge, Louisiana. Today, the company has 154 locations worldwide, including 80 company-owned or -operated restaurants and 74 franchised restaurants.
But the Ruth’s Chris Steakhouse company, now based in Winter Park, Florida, suffered as most restaurants did during the pandemic, closing 23 restaurants in early 2020, furloughing workers and announcing that executives were taking less pay. The good news is that shares of Ruth’s Hospitality Group Inc., which owns the restaurants, recovered within a year of the outbreak.
“Ruth’s Chris is a strong and distinctive brand in the fine dining segment with an impressive history of delivering elevated dining experiences to their loyal guests,” said Darden CEO Rick Cardenas said in a prepared statement Wednesday.
Darden Restaurants Inc. owns Olive Garden, LongHorn Steakhouse, Yard House, Cheddar’s Scratch Kitchen, The Capital Grille, Seasons 52, Bahama Breeze and Eddie V’s. The deal, which was unanimously approved by both companies’ boards, is expected to close next month.
—
Photo Credit: Jonathan Weiss / Shutterstock.com