Following Bankruptcy, is Ruby Tuesday Permanently Closing?

The restaurant chain permanently closed over 600 locations in the past decade, with 209 remaining upon exiting a Chapter 11 bankruptcy early last year. The long-term future of the company remains in question.

Ruby TuesdayShutterstock

Author’s Note

This article is based on corporate postings and accredited media reports. All linked information within this article is fully-attributed to the following outlets: Wikipedia.org, RubyTuesday.com, BusinessWire.com, and RestaurantBusinessOnline.com.

Introduction

The Ruby Tuesday chain’s Wikipedia page provides historical perspective of the once-venerable restaurant that was founded in 1972 and has recently confronted notable business challenges: Ruby Tuesday filed for Chapter 11 Bankruptcy protection on Wednesday October 7, 2020, stating it will permanently close 185 restaurants that had been shut down during the COVID-19 pandemic. After the closures, the company would have 236 company-owned and operated locations, as well as an undisclosed number of locations run by 10 franchisee groups. Ruby Tuesday emerged from bankruptcy on February 24, 2021, Ruby Tuesday exited Chapter 11 Bankruptcy, with 209 restaurants, closing more restaurants than initially planned.

A February, 2021 article from RestaurantBusinessOnline.com picked up from there. The article, titled “A Much Smaller Ruby Tuesday Emerges From Bankruptcy,” stated the following: At the end of 2019, Ruby Tuesday operated 451 locations. But it operated 840 locations a decade ago, according to data from Restaurant Business sister company Technomic.

The question becomes one of chain’s longevity: Will it be able to hold on? And, if so, for how long?

Let us explore further.

Ruby Tuesday, 2022

One year following the company’s bankruptcy exit, Ruby Tuesday issued a press release announcing a new menu to great fanfare, and the beginning of an attempted rebrand: Ruby Tuesday has declared Feb. 22, 2022 the Greatest of all Tuesdays (“The G.O.A.T.”) in celebration of a brand-new menu, with special $2 deals available throughout the day. As part of its “2’s Day” celebration, guests who visit on Feb. 22, 2022 can enjoy $2 mini-margaritas, $2 domestic draft beers, $2 Ruby Relaxers, as well as a Garden Bar add-on and dessert add-ons for only $2 each with the purchase of an entrée.

Time will tell if the fanfare attains its desired effect.

In the meantime, the company appears to be fully intending to stay in business and reclaim its place as a perennial brand. See here for more on the history of Ruby Tuesday, from the company’s website: From that first restaurant near the campus of the University of Tennessee in 1972 to more than 600 restaurants across the United States and around the globe, Ruby Tuesday grew to become part of a large public foodservice company in 1982, to be its own independent, publicly traded company in 1996, and along the way to become one of the most well-known and beloved brands in casual dining.

Such represents the public face of the company. Though the parent entity, Ruby Tuesday Inc. (RTI) no longer runs 600 restaurants, the history remains.

Conclusion

For now, remaining locations of the Ruby Tuesday chain are staying open, per official company word. However, much like Friendly’s — which I had written about earlier for NewsBreak — this restaurant is one to watch, as economists and various media outlets continue to question the company’s longevity.

Thank you for reading.