Summer Internship Project Report

On

“Consumer Awareness towards RubyTuesday

&

Customers’ Response to the Launch of Loyalty Program”

Undertaken At

A brand managed by

RTC Restaurants India Limited

Submitted towards the partial fulfillment of

Post Graduate Diploma in Business Management

Submitted By

Robin Kumar Jindal

PGDBM 2008-2010

Roll No. 28098

Submitted To: Mr. Vikas Pall Industry Guide

Submitted To: N. Meenakshi Faculty Guide

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CERTIFICATE OF ORIGIN

This is to certify that Mr. Robin Kumar Jindal, a student of Post Graduate Diploma

in Business Management at NIILM-CMS has worked in the RTC Restaurants (India)

Limited, New Delhi under the guidance and supervision of Mr. Vikas Pall, General Manager-

Operations.

The period for which he was on training was for 8 weeks, starting from 3rd May 2009

to 30th June 2009. This Summer Internship report has the requisite standard for the partial

fulfillment of the PGDBM. To the best of our knowledge, no part of this report has been

reproduced from any other report and the contents are based on original research.

Signature Signature

N. Meenakshi Robin Kumar Jindal

(Faculty Guide) (Student)

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DECLARATION

This is to certify that the project report entitled “Consumer Awareness Towards

Ruby Tuesday and their response to the launch of Loyalty Program” submitted by Mr.

Robin Kumar Jindal, a student of PGDBM at NIILM-CMS, New Delhi, is a bonafide record

of work carried out by him at RTC Restaurants (India) Limited in lieu of completion of the

Summer Internship Project. All the information of confidential nature has not been disclosed

in the report.

Signature Signature

Vikas Pall Robin Kumar Jindal

(Industry Guide) (Management Trainee)

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ACKNOWLEDGEMENT

It takes immense pleasure for me to express my sincere gratitude to all the helping hands

who have guided me in the completion of this project. It was a great learning experience for

me to work on my project for two months in such a charged and highly motivated

organisation. As a student of NIILM-Centre for Management Studies, I got an opportunity

for doing my summer internship in Ruby Tuesday, a part of RTC Restaurants (India) Ltd. I

would like to thank NIILM-CMS, New Delhi, for giving me the platform to work with one of

the most renowned organizations.

I would like to express my deep gratitude to RTC Restaurants (India) Limited, for giving me

the opportunity to hone my skills and learning through a practical approach with this

Summer Internship Project. I would like to give my regards to Mr. Vikas Pall, General

Manager (Operations) who was my mentor and a continuous source of inspiration during

these two months. Without him this project could never be succeeded. His guidance and

vision helped us in exploring different ways to complete this challenging task.

I am deeply indebted to my faculty guide Mrs. N. Meenakshi, who has supported me

immensely throughout the project through discussions and by always showing me the right

course to pursue. The information and suggestions provided by her proved to be most

valuable.

I owe special thanks to all the employees at RTC Restaurants (I) Ltd, 703, Chiranjiv Towers,

43, Nehru Place, New Delhi, for their support during the training period.

Last but not the least, my effort will remain incomplete if I do not express my indebtedness to

my teachers, friends and family members for their love and blessings and whose assistance

and support are instrumental in the successful completion of this project.

Robin Kumar Jindal

PGDBM 2008-2010

NIILM-CMS, New Delhi

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A WORD ON

NIILM-Centre for Management Studies

Beginning life in 1996, NIILM-CMS is scaling new heights and making rapid strides thanks

to its highest standards of academic excellence. Today, NIILM ranks among the country’s

top business schools. It’s flagship Post Graduate Diploma in Business Management

(PGDBM), approved by the All India Council for Technical Education (AICTE) and the

Human Resource Development (HRD) Ministry, Government of India, is also recognized

by the Association of Indian Universities (AIU) as per equivalent to an MBA degree.

This summer training is a part of the curriculum and it is as an interface between the

industry and the college so as to impart a deep learning to the students.

To develop a pedagogy based on learning-through-action, the institution has floated a

unique concept called Action Learning Laboratory (ALL). Using a plethora of techniques

such as role-playing, simulations, workshops and skill-building exercises, ALL helps the

students to communicate better and conduct themselves appropriately in a business

environment. Similarly, other activity-based platforms like the CEO Forum and Osmosis

seeks to increase students’ exposure to the industry and organize more interactions with top

management people.

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EXECUTIVE SUMMARY

This project is based on my learning and research that I underwent during my training at

Round The Clock (RTC) Restaurants (India) Ltd. It consists of the procedures involving the

collection and analysis of various information required to wholly understand the customer

awareness of Ruby Tuesday, whose master franchise in India is with RTC Restaurants (I)

Ltd, and also to assess the response of customers towards the launch of its new loyalty

program.

This project was completed using primary data, gathered directly from potential and existing

customers of Ruby Tuesday. A complete analysis of findings are compiled and classified into

appropriate sub modules. Various interesting findings from the interview of customers have

led to the culmination of this report.

The primary objective of the project is to find out the level of customer awareness of Ruby

Tuesday brand, especially in the areas nearby the Ruby Tuesday outlets, like Nehru Place,

Janakpuri, Greater Kailash- II, Saket, to name a few. Also, the project aims at gauging the

customer response to the launch of a loyalty program by Ruby Tuesday and whether it can

get converted to actual increase in footfall in the restaurant outlets.

To begin with, the research was conducted on 462 respondents on the basis of Mall-Intercept

to find out the awareness of the brand Ruby Tuesday. Out of 462 respondents, 106

respondents gave a favorable response for Ruby Tuesday. So the further research was

conducted on those 106 respondents.

Telephonic survey was conducted at the corporate office of RTC Restaurants (I) Ltd. After

the distribution of Neighborhood Loyalty Card, the customers were given a telephone call to

know the status of loyalty card and a general purpose questionnaire is filled by asking eight

questions from the targeted 139 respondents. Out of 139, those who (80) gave a positive

response to the first question (Have you dined at Ruby Tuesday?) were preceded further with

the entire questionnaire.

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From the study and with the help of the survey I concluded that the loyalty program can be a

better mode of increasing customer loyalty, brand awareness, brand recall, brand priorities &

repeat purchase behavior.

As Loyalty programs only have a limited range, so it should be clubbed with other marketing

programs to make a more effective tool of marketing brands. Proper ground work must be

done before launching these programs so as to avoid any irregularities & wastage of time &

resources.

The project has helped me immensely to get insight into the workings and trends in the

restaurant and hospitality industry. I got to know about other restaurant brands under RTC

Restaurant (I) Ltd as well and their different USPs in the market.

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Chapter 1: Introduction………………………………....…9

RTC Restaurants (I) Ltd……………………….…………......10 Brands Managed by RTC……………….………………...….12 Operations at RTC Restaurants (I) Ltd……………….............20 Ruby Tuesday International…………………………………..26 Ruby Tuesday Franchise……………………………………...33 Ruby Tuesday India…………………………………………..36 SWOT Analysis of Ruby Tuesday India……………………..39

Chapter 2: Literature Survey…………………………….40 Introduction to Consumer Behavior……...…………………..41 Introduction to Loyalty Programs……………………………44 Ruby Tuesday Loyalty Program……………………………...50

Chapter 3: Research Methodology……………………….52

Research Objectives…………………………………………53 Research Design……………………………………………..53 Sample Design……………………………………………….54 Scope of the Study…………………………………………...55 Limitations…………………………………………………....55

Chapter 4: Data Analysis and Interpretation…………...56

Data Analysis…………………………………………………57 Fieldwork...…………………………………………………...57Data Representation…………………………………………..57 Comparative Analysis of Ruby Tuesday……………………..80 Analysis of Customers’ Response to Loyalty Program………84

Chapter 5: Recommendations and Conclusion……….....96

Recommendations………...…………………………………..97 Conclusion……………………………………………………98

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Bibliography………….……………………………………99 Annexure.............................................................................101 Annexure I - Consumer Awareness towards Ruby Tuesday….……..…...…..102 Annexure II - Customer’s Response to Ruby Tuesday Loyalty Program……105 Annexure III - Locations of RTC’s Outlets in Delhi & NCR…………….….106

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ROUND THE CLOCK RESTAURANTS (INDIA) LTD AN INTRODUCTION

Round The Clock Restaurants (India) Ltd is the master franchise of Ruby Tuesday with

exclusive rights for India. Beginning from the year 2000, the company has set up fourteen

very successfully running restaurants in Delhi & NCR (national capital regions), Chandigarh,

Mumbai and Bangalore. The company has setup many more restaurants in Delhi, Mumbai,

Bangalore, Ludhiana, Kolkata and many major metros in India.

The very first restaurant in India Started in the year 2000, at Connaught Place, New Delhi In

India the company is headed by Mr. Gaurav Jain, who is the Managing Director. RTC has

employee strength of around 650.Within the last 7 years the company has spread to many

restaurants all over India.

Corporate Office- RTC Restraunts (India) Ltd

705, Chiranjeev Towers, Nehru Place,

New Delhi – 110 0019

Tel No: 011 – 26447971-76

Fax No: 011 – 26447963

Website: www.rtcindia.co.in

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RTC Restaurants (I) Ltd. Organisation Structure

Various Authorities & Their Designation at RTC Mr. Gaurav Jain Mr. Vikas Pall

Managing Director, General Manager (Operations)

Mr. Deepak Talwar Mr. Prasoon M Tripathi

COO, RTC Restaurants (I) Ltd. GM-HR, RTC Restaurants (I) Ltd.

Mr. Anil Rao Mr. Naveen Jindal

GM - Corporate Finance GM – Projects & Maintenance

Mr. Supender Goel Ms. Nidhi Kuchhal

GM – Supply Chain Management Senior Brand Markating Manager

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Brands Managed By RTC

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RTC

Ruby Tuesday

New Concepts

Mandarin Trail (High End- Chinese

Restaurant)

Food Junction (Food Court)

Polka Bar & Grill

World Cuisine (High End

Restaurant-Chinese, Italian & Thai

Mandarin Express (Chinese)

Indian Express (Indian & South

Indian)

Corn on the run (Corn Carts) In

Pipeline

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Ruby Tuesday is an all Simple Fresh American Dining Restaurant chain with over 1000

restaurants worldwide and has been running successful operations since 1972. Ruby

Tuesday, a publicly owned company, traded in NYSE and is spread all over North America,

South America, Europe and Asia. Ruby Tuesday was launched in India in the year 2000, with

its first outlet in the heart of Delhi – Connaught Place. After that there was no looking back!

Today there are proudly owned restaurants in Saket, Nehru Place, GK- II, Raja Garden,

Gurgaon, Noida, Mumbai (Nariman Point, Malad, Mulund), Bengaluru and Chandigarh1.

Ruby Tuesday serves an extravagant salad bar along with its mouth-watering delights:

Platters, Fajitas, Enchiladas, Stackers, Burgers, Pastas, Sandwiches and the range of Indian

Kebabs and Curries and complimenting these delicacies is an elaborate Bar, serving a spirited

range of Ruby Classic, Frozen Specialties, Shooters, Cocktails and a large variety of Classic

and Incredible Mocktails….

The goal, at Ruby Tuesday, is to provide you with WOW!! Food and WOW!! Service in

WOW!! Surroundings. From the freshness of hand cut vegetables on its awesome salad bar

to the smiles on its server’s faces, from the time it takes to season and slow – bake our

famous “PREMIUM BABY BACK RIBS” to the last bite of our Chocolate Tall Cake, we

take care about details, about getting things right and we are committed to consistency and

quality.

Named after the Rolling Stone’s chart buster ‘Ruby Tuesday’, the spirit of 70’s permeates the

atmosphere and music at Ruby Tuesday. Dressed up in warm inviting colors, with

memorabilia like upended tiffany, style lamps, base ball and basketball legends on the wall

and evergreen rock classics setting the mood for…. The WOW Casual Dining Experience…

Come experience…. SIMPLE FRESH AMERICAN DINING!!

1 Annexure III: Number of outlets and their locations operated by RTC in India

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SBARRO’s roots go back to Naples, Italy where for Gennaro and Carmela SBARRO, the art

of crafting Italian cuisine was a way of life. The couple and their three sons, Mario, Joseph

and Anthony, immigrated to America in 1956 to pursue their dream of owning a successful

business in the U. S. Their SBARRO Italian Delicatessen in Brooklyn, N.Y. was well

received by the local community and was the first of what would grow to become some

1,000 SBARRO restaurants. Today, SBARRO is owned by MidOcean Partners, a premier

riveted equity firm.

The SBARRO name is synonymous with delicious Italian food that customers can count on

for quality and taste. The company’s 8,000 employees continue Gennaro and Carmela’s

tradition of providing authentic Italian dishes and flavors in SBARRO restaurants all around

the world.

Over the past five decades, SBARRO has grown into the world’s leading quick service

Italian Restaurant Company with close to 1,600 units across 47 countries. The company

offers an extensive menu of more than 200 items based on authentic Southern Italian recipes

passed down through the SBARRO family. SBARRO restaurants can be found in malls,

airports, universities, rest stops, hotels and stadiums throughout the world. For five out of six

years, SBARRO has been ranked by Entrepreneur magazine as the #1 quick service Italian

restaurants. Other brands owned by the company include Mama SBARRO and Carmela’s of

Brooklyn. SBARRO is in a joint venture under the name Boulder Creek Venture, operating

steakhouses including Boulder Creek Steakhouse, Rothmann’s Steakhouse, Sagamore

Steakhouse, Blackstone Steakhouse and Burton & Doyle.

JOINT VENTURE OF SBARRO & RTC:

SBARRO, the world’s leading quick service Italian Restaurant Company, announced on 7th

September, 2006 a joint venture with RTC Restaurants India ltd to open 100 restaurants in

India. SBARRO’s joint venture with RTC Restaurants (India) Ltd, SBARRO Restaurants

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(India) Ltd, developed and operated India’s first SBARRO restaurants in New Delhi in 2007,

with 10 units opening every year over the next 10 years. The majority of the restaurants are

located within shopping malls in major metropolitan areas such as New Delhi and Mumbai.

Earlier this year, SBARRO announced agreements to open more than 75 units in regions

across the globe, including Mexico, Egypt, Romania, Central America and The Bahamas.

According to Peter Beaudrault, president and CEO of SBARRO, the joint venture with RTC

would result in SBARRO’s largest international expansion to date and allowed to introduce

the authentic Italian food to yet another culture. Again he said that with 250 malls in

development, India presents a huge opportunity for SBARRO and efforts are underway of the

work with RTC Restaurants (I) Ltd to establish the brand in the Indian market place.

SBARRO serves fresh, traditional Italian cuisine that the cooks prepare in exhibition kitchens

while the guests relax in a casual atmosphere. Their famous pizza is only the beginning of the

SBARRO culinary adventure. They offer sumptuous entrees, pastas, salads, sandwiches, and

homemade desserts - tastes to fit every palate.

The USP of SBARRO is that it offers “PIZZA BY SLICE”. The stuffed pizza, Stromboli,

Ziti Pasta, Penne with black olives, Garlic Bread and Roasted Potatoes are some of the

extremely popular dishes available. One can also enjoy these mouth watering delights on

various occasions like: corporate parties, kitty parties, birthday parties, get together, private

functions.

SBARRO is the first restaurant in India to offer pizza by the slice and a full Italian menu.

Menu items are tailored to the religious and ethnic preferences of the Indian culture and

exclude beef products and meat-based pasta sauces. Additionally, SBARRO chefs have

created a variety of new vegetarian dishes to appeal to the largely vegetarian population.

SBARRO’s contemporary Italian design, with sleek finishes, bright lighting, and an open

kitchen is offset by cozy seating to create an environment that is interesting, lively and

comfortable. Friendly, attentive service is what makes SBARRO the perfect place for social,

business and group dining.

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Chinese cuisine is defined by carefully balanced flavors and time tested recipes that call for

minimal cooking of finest ingredients. Mandarin Trail offers a truly upscale dining

experience with an authentic oriental ambience. It relishes a gargantuan menu that comprises

of rare recipes and cuisine from far Eastern China and a well-endowed stylish live kitchen.

Mandarin Tail is truly an Authentic Chinese Cuisine fine-dine restaurant, traces its roots from

the Mandarin region of China. It has tried to capture some of the traditional cooking style

that exists in the Mandarin region of China.

Situated at 3rd Floor in The Great India Place Mall, Noida, Mandarin Trial boasts a spacious,

contemporary setting space for over 82 diners including a stylish lounge bar and live kitchen,

beautifully design by Mr. Sumit Nath. While the furniture mainly constitutes of comfortable

couches and relaxed chairs, the walls furnished with pictures to give ambience a perfect look

and the hanging lights at the lounge goes with its theme.

Such an enormous restaurant deserves a gargantuan menu to match and Mandarin Trail

certainly has this. A menu that boasts of a range of soups, starters, dim sums, and a wide

variety of mains from the vegetarian or non-vegetarian a-la-carte menu. Some of the special

dishes include silken tofu lai style, tangy eggplant with sesame seeds, crispy conjee lamb,

and sautéed prawns butter garlic. The list is endless.

Dishes such as Wok-fried noodles, seasonal vegetables, spicy garlic sauce, Wok fried

noodles with slice fish in xo sauce, sautéed prawns in lemon coriander sauce, are some of the

other tempting dishes on the menu.

The main menu is based on culinary delights from Mandarin regions of China and would

leave you spoil for choice with over 107 dishes to choose from, including a selection of

mouth watering appetizers, lamb, chicken, seafood and vegetarian dishes.

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To compliment the food, mandarin trail offers a wide array of spirits and cocktails specially

crafted by our bartender.

Polka is a bar and restaurant renowned for its culinary appeal. The food at polka is light,

contains minimal oil and apposite quantities of spices. Polka rediscovers the flavors and

attempts to preserve its essence and at the same time embellishes it with a taste of the new

trends.

The lounge exudes sophistication not only in its contemporary yet the pop art movement of

its great Roy Lichtenstein, but also its plush and soothing ambience. While the furniture

mainly constitute of comfortable couches and relaxed chairs. The bar aims to be young and

trendy.

One can both heads for the bar and make his/her presence felt over the wide array of wine

and spirits. The house DJ plays mesmerizing music that is specially created for Polka. The

tracks are spun masterfully and exclusively for the place especially for the different nights.

Polka Bar & Grill is a tribute to people who are warm, expressive and in love with life itself.

Polka symbolizes all this and much more, bringing with it an element of fun, warmth and

freedom.

Polka rediscovers the flavors with the veritable spirit of Indian and Chinese cuisine. With

signature dishes including vegetarian entrees, tandoori dishes and kebabs, the customers

palate will never be the same. Furthermore, enjoy the multi-level experience of Chinese

cuisine with Chinese dish name (description like: refined flour stuffed with ground lamb and

baked in a clay oven) Chinese dish name (description like: long-grain Basmati rice cooked

with lamb, Hyderabadi style), or Chinese dish name, flavored with aromatic herbs, to name a

few.

The Polka bar offers a selection of the finest wines & spirits, carefully handpicked by their

beverage experts. The Polka bar promises to exhilarate the customer’s senses and give a

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relaxed space to unwind with friends and colleagues. Polka is assuredly the only bar in town

offering a classic experience within the ambience of an Island bar and restaurant. The house

DJ spins mesmerizing music masterfully & exclusively for Polka patrons.

Polka has a very huge range of imported flavored sheesha. In today’s fast changing world,

Polka provides a place where people can get together for a corporate launch or chill at night

in a fun place. May it be the food, the drinks, the décor or the music, everything is unique

and truly a mix of old and the new.

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OPERATIONS AT

RTC RESTAURANTS INDIA LIMITED

Restaurant Hierarchy

Area Manager

Restaurant General Manager

Assistant Restaurant General Manager

Restaurant Manager

Assistant Restaurant Manager

Shift Leader FOH Shift Leader BOH

FOH BOH

SPG Server Bartender Prep Grill Sauté Pantry

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FOH: FOH means Front of the House. This is the team of people who happen to have direct

interaction with the customers that is why they are called people at the front of the house.

FOH is headed by a Shift Leader (FOH) and he is responsible for ensuring normal operations

at the FOH.

FOH has following types of positions

SPG

Server

Bartender

BOH: BOH means Back of the House. This is the team of people who generally do not have

direct interaction with the customers that is why they are called people at the Back of the

house. Instead they co-ordinate and respond to the activities and actions of FOH team which

are in turn directed by the requests of the customers.

BOH is also headed by a Shift Leader (BOH) and he is responsible for ensuring normal

operations at the BOH.

BOH has following types of positions

Prep

Pantry

Grill

Sauté & QA

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General interaction structure among Customer-FOH-BOH

CPU: CPU is the abbreviation of Central Production Unit of the restaurants. There is one

common CPU which internally segregated to ensure supply of food & beverage items and

raw materials to all the restaurant units of north India without interfering with each others

requirements. The Central Production Unit is headed by CDP Mr. Shirish Singh.

Few Facts about CPU Northern Region

Located at Greater Noida, Uttar Pradesh

Backbone of units located in and around Delhi and NCR

Provides all supplies of raw materials- vegetables, cut meats, sauces, gravies

Main Function(s)

To ensure uninterrupted supply of processed & raw materials for food & beverages.

To standardize operations and products.

To maintain consistency.

To make the production cost effective.

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CPU Structure:

Just as a UPS has the role of providing regulated power supply to a computer system and

prevents it from fluctuations of external power supply, likewise the CPU ensures timely

supply of materials (food and beverages) by acting as a buffer between the market and the

restaurants.

CPU has four major sections

Receiving

Stores

Pantry/Kitchen

Shipping and Distribution

Uninterrupted

Supply

Standardized Operation & Production

Cost Effective Production

Consistency

CPU

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Receiving: The receiving section takes up requisitions sent by Restaurant Support Center for

various materials to be supplied at various units on daily basis.

Stores: This is the real warehouse of the CPU. It keeps and records all the raw materials to

be used for further preparations. The major items include various sauces, condiments, herbs,

special high glutenin flour, gravies etc. The amount of inventory to be kept is based on the

consumption pattern of last three months (3 months moving average)

Pantry/ Kitchen: Here the raw materials are processed, cooked, seasoned, garnished,

packaged, vacuumized, and sealed and transformed into a state and portions in which they

are readily consumable at the BOH of the restaurants.

The raw as well as prepared food items are classified into perishable and fast perishable

items and refrigerators and deep freezers respectively. Item Nature Stored in Temperature Range

Non Perishables Cool & Dry Rooms (25 to 15) Degree Celsius

Perishables Refrigerator Rooms (5 to 0) Degree Celsius

Fast Perishables Deep Freezer Rooms (-5 to -20) Degree Celsius

Receiving Stores Pantry/Kitchen Shipping and

Distribution

CPU

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The temperatures are continuously monitored and logged by electronic thermometers. There

is also fairly good backup of heavy generators in case of power failure

Shipping

Shipping at CPU refers to all the inbound logistics. Just as the restaurants are the internal

customers of the items internally produced by the CPU, likewise CPU is the external

customer for the external supplies of raw materials.

All the raw material from those external suppliers is received at the shipping bay. It is then

compared against the set standards or measures like weight, dimensions, color, taste, smell,

lean, cut, temperature etc. In case the samples do not meet up to the standards the lot is

rejected. This becomes fairly important in case of fast perishable items like meat and milk

products.

Item Provider Source Country

Cheese Amul India

Chicken Venky’s India

Pork Ribs Not Disclosed Brazil

Distribution

Distribution at CPU refers to all the outbound logistics to the restaurants. The Receipt section

forwards the list of all the items to store and pantry, for which the request had arrived from

the RSC. They transport the materials to distribution section, internally after making the

necessary entries. The distribution section loads those items into transport vehicles /

Refrigerated Trucks and they are then dispatched from CPU for delivery at the restaurants.

All supplies are transported in refrigerated vans to units at night after operations are over.

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INTERNATIONAL

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Brief History The first restaurant was founded in 1972 by five University of Tennessee students, and is

now headquartered in Maryville, Tennessee. The first location was adjacent to UT's

Knoxville campus on Twentieth Avenue near Cumberland Avenue. The building still stands,

but it is now occupied by a bar called the Roaming Gnome, next door to Stefano's Pizza, on

the corner of Cumberland, both of which are local institutions in their own right.

In April 1982, Ruby Tuesday became part of the Specialty Restaurant Division of Morrison,

Inc. The merger provided the chain with additional financial support to continue its growth.

In March 1996, the shareholders of Morrison's approved a distribution and divided Morrison

Restaurants, Inc. into three separate companies: Ruby Tuesday, Inc. (RTI); Morrison Health

Care, Inc., (subsequently purchased by Compass Group); and Morrison's Fresh Cooking,

Inc., (now owned by Piccadilly). Ruby Tuesday, Inc., therefore, is the successor of Morrison

Restaurants, Inc. and is now one of America's largest casual dining companies. At the time of

the distribution, Ruby Tuesday, Inc. operated many other restaurant brands in addition to

their flagship Ruby Tuesday brand, including L&N Seafood Grill, Silver Spoon Cafe,

Mozzarella's Cafe, The American Cafe, and Tia's Tex-Mex.

In the summer of 1998, Ruby Tuesday relocated its Restaurant Support Center from Mobile,

Alabama to Maryville, Tennessee, where the company built an on-site training facility,

WOW-U, in addition to a lodging and dining facility, RT Lodge. These facilities are used

daily as a training and development center for the Company's restaurant managers.

In November 2000, Ruby Tuesday completed the sale of The American Cafe, Silver Spoon,

L&N Seafood, and Tia's Tex-Mex restaurants to Specialty Restaurant Group, LLC. This

divestiture allowed Ruby Tuesday to concentrate exclusively on the growth and development

of its flagship brand.

Many of the locations in the Midwestern and Northern US can be found in mall locations,

while many of the Southern stores, such as those in Kentucky and Tennessee, are stand-alone

stores.

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On April 12, 2007, the Ruby Tuesday, Inc. changed its NYSE ticker symbol from RI to RT.

In August 2007, Ruby Tuesday acquired a local self-serve Fresh Asian Dining Restaurant,

Wok Hay. In October 2008, a second location was opened in a recently converted Ruby

Tuesday restaurant building.

Size and expanse of chain

Currently, Ruby Tuesday, Inc. has Company-owned and/or franchise Ruby Tuesday brand

restaurants in 44 states, the District of Columbia, Puerto Rico, Guam and 13 foreign

countries. As of 5 June 2007, the Company owned and operated 680 Ruby Tuesday

restaurants, while domestic and international franchisees (including Hawaii, Mexico and

India) operated 199 and 54 restaurants, respectively. In February 2008, the 1st branch in the

Philippines opened in TriNoma. Ruby Tuesday, Inc. is traded on the New York Stock

Exchange (Symbol: RT).

No more "Bar-and-Grill"

In 2007, the Company began re-branding itself, moving out of the "bar-and-grill" segment of

the industry, with changes including higher-quality menu items and handcrafted beverages.

As a part of re-branding, the company began remodeling its restaurants as a part of "a three

year plan to reposition, reinvent and reinvigorate the Ruby Tuesday brand". Ruby Tuesday

CEO and Chairman Sandy Beall explains the re-branding in his letter to shareholders, found

in the company's FY2007 Annual Report:

Elevating Ruby Tuesday above the crowd to a memorable, high-quality dining experience is

critical to our growth and success. ... We began by bringing our guests fresh, exciting new

menu choices, then raised our standards of service, and are now creating an innovative new

look and style for each and every restaurant. This revitalization will appeal to our loyal core

guests while attracting a new generation of consumers.

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"Implosion"

In August 2008, Ruby Tuesday created a campaign to show how radical these changes would

be. On August 5, over "live" streaming internet video, a demolition crew was supposed to

implode the final "old Ruby Tuesday" in where they said was Mount Holly, Ohio but was

actually in Harriman, Tennessee, to show their commitment of change in front of a small

crowd. However, to the crowd's shock, the restaurant next door called "Cheeky's Bar and

Grill" (which looked like any other casual dining chain) was imploded. After the events, the

senior VP of marketing for Ruby Tuesday (in actuality, an actor) posted a formal apology

and a video of said apology on the Ruby Tuesday website and on TV. The idea was merely

an elaborate marketing ploy to raise attention to the newly remodeled restaurants. In

actuality, the implosion was a miniature done by a Hollywood special effects crew, and then

edited into the footage of the pre-recorded webcast to make it look like an accident.

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Story "Ruby Tuesday" is a song recorded by The Rolling Stones in 1966, released in January

1967. The song was a number-one hit in the US and a number three in the UK.

"Ruby Tuesday"

Single by The Rolling Stones

from the album Flashpoint

Over 30 years ago, a young man named Sandy

Beall called together four college buddies from the

University of Tennessee and hatched an idea that

would become one of America's favorite casual

dining restaurants.

Sandy Beall, Chairman,

Ruby Tuesday

Ruby Tuesday is driven by uncompromising freshness and quality, gracious hospitality and a

growing list of Five-Star restaurants destined to be the envy of the casual dining business.

"Ruby Tuesday"

Single by The Rolling Stones

from the album ”Between the Buttons”

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At Ruby Tuesday, we're fully committed to preparing and serving food of uncompromising

freshness and quality - with signature choices like our premium Handcrafted Burgers and our

bountiful, Fresh Garden Bar - and we're grateful that our restaurants are made possible by

passionate employees who make it their business to delight each and every guest with an

excellent dining experience. From our ongoing efforts to bring you the best menu in casual

dining and the best Handcrafted Burgers anywhere, to the gracious smiles and genuine

hospitality that greet you at our doors, Ruby Tuesday wants to make our Simple Fresh

American Dining your favorite dining anywhere.

Mission Quality. Passion. Pride.

Quality means freshness. It's fresh 100% USDA Choice or Prime ground beef formed into

perfectly grilled, Handcrafted Burgers that redefine an American classic. Quality is seasonal

vine ripened tomatoes and crisp leaf lettuce still glistening with garden dew. It’s applewood

smoked bacon and premium cheeses and an uncompromising commitment to providing you

the best.

Passion is people. People who love what they do and take your enjoyment personally.

Passion is what to expect from the people who take your order, the people who craft your

meal (and peek out from the kitchen to see your delight) and the people who are designing

our comfortable, stylish Five-Star restaurants that are destinations in themselves. Everyone

you meet here is happy you've come, and they're genuinely dedicated to having you visit with

us frequently.

Pride makes us a family. This is our home. You are our guest. And we will attend to your

dining experience with a degree of care and attention to detail unrivaled anywhere. A deep

desire to serve others is the secret weapon of a gracious host. And it's why, at Ruby Tuesday,

we want you to always leave with a smile.

33

This trio of "non-negotiable" sets Ruby Tuesday apart. They fuel us, bind us and compel us.

They are the tools of a business culture comprised of talented, committed individuals focused

on the same thing: consistently delighting our Guests.

A primary goal of Ruby Tuesday is to find and select investors who are seeking a

powerhouse franchising investment. We are looking for proven business people who share

our values of quality, passion and pride and can translate these values into success.

In the next five years, Ruby Tuesday is anticipating rapid growth and high returns. By

joining the franchise family now you will open the door to a passionate culture that yields

sweet returns.

Locations around the World Our quality, passion and pride won't be hard for you to find

Canada Chile

Egypt Guam

Greece Hawaii

Hondura Hong Kong

Iceland India

Kuwait Puerto Rico

Romania Saudi Arabia

Trinidad

34

Ruby Tuesday Franchise The franchise philosophy at Ruby Tuesday is to leverage the strength of the proven, casual

dining restaurant2 and culture to deliver a lower risk, solid return offering to select

investment partners.

Since beginning the franchise program in 1997, they have created a franchise structure that

not only attracts qualified franchisees to Ruby Tuesday, but supports them in strategic ways

that allow them to make solid returns on their investment.

They must be doing something right. They have signed agreements for the development of

new franchised Ruby Tuesday restaurants with 46 franchisees throughout the United States

and in 16 foreign countries. Ruby Tuesday believes that the goals and objectives they share

with their franchisees can be achieved when they share a common vision and both possess

the necessary experience and financial strength.

Joining the Ruby Tuesday franchise family will open the door to an exciting future. Since

1972, they have set the highest standards in culinary excellence and restaurant innovations.

Ruby Tuesday have positioned them as a leader in restaurant technology, have been

recognized for their commitment to and the effectiveness of ongoing training, and achieved

the highest level of operational expertise. Franchise opportunities are now available for

interested investors and potential restaurant franchisees in many areas of the world, both

internationally and domestically.

Franchise Profile Multiple restaurant and/or hospitality experience

Solid financial backing

Successful business experience in the desired market

Time and development commitment

Aligned goals and values with Ruby Tuesday

A passion to successfully operate a proven brand

2 A casual dining restaurant is a restaurant that serves moderately-priced food in a casual atmosphere. Except for buffet-style restaurants, casual dining restaurants typically provide table service.

35

Ruby Tuesday knows what it takes to build and sustain a successful business.

Their franchise support team has many years of restaurant experience that they share with

franchisees during every phase of development - from inception, to restaurant establishment

and ongoing operations.

Ruby Tuesday believes in One Brand, One Standard and One System. To maintain and

protect the Ruby Tuesday brand, the same tools, processes and procedures that have created

the successful brand are leveraged across the franchise family. Services include

owner/operator training, real estate assistance, facility design, management training, new

restaurant opening procedures and ongoing operational support. The Ruby Tuesday Support

Team Covers All the Bases.

Real Estate Development The Real Estate department provides guidance to franchisees on matters related to real estate,

development and the design and construction of restaurants. At Ruby Tuesday, the selection

of real estate is so important that their Founder and/or Vice President of Real Estate visits

and approves every location that is built in the United States. In addition, they provide

assistance in the design and construction of restaurants based upon their innovative building

prototypes.

Operations Support Ruby Tuesday accepts only the best franchise operators. To support their efforts, they

provide Vice President-level support, communication and consultation for every franchisee.

They work with their franchise community to develop strategies for building sales,

optimizing profits and ensuring the strategic development of the market.

Marketing The Marketing department makes certain that the Ruby Tuesday brand stays top of mind with

Guests from coast to coast. In addition, building brand awareness and spending over $75

million in nationwide advertising, the Marketing department also provides local restaurant

marketing materials and support materials designed specifically for the franchise community.

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World-Class Culinary Department By leveraging their over 900+ restaurants and 35+ years of menu research and development

experience for the brand, the restaurant operators can be assured that every menu item will

meet or exceed the Guests' expectations as part of an incredible dining experience.

Every menu update and promotional item is introduced to the restaurants by seasoned,

trained operators. Complete roll out manuals and materials are created to ensure smooth

implementation of every menu item.

World-Class Information Technology Department Ruby Tuesday's Information Technology Department has created the tools necessary to

provide real-time access to virtually any information one needs to successfully manage their

business anywhere in the world. From downloading pricing to ones Point of Sale systems, to

creating proprietary tools that improve Guest satisfaction and ones bottom line, like KDS

(Kitchen Display System), BDS (Bar Display System) and their legendary BOSS (Back

Office Store System), the IT Department provides you with the real-time operational reports

and statistical information one needs to maximize success.

37

Ruby Tuesday INDIA Ruby Tuesday began operations in India in the year 2000. RTC Restaurants (India) Ltd is

the master franchisee with exclusive rights for India. Since its inception in India, 14 very

successful restaurants have become operational and many more are planned in all the major

cities nationwide.

The very first restaurant in India Started in the year 2000, at Connaught Place, New Delhi In

India the company is headed by Mr. Gaurav Jain, who is the Managing Director. RTC has

employee strength of around 650.Within the last 7 years the company has spread to 14 outlets

all over India.

Ruby Tuesday is driven by uncompromising freshness and quality, gracious hospitality and a

growing list of Five-Star restaurants destined to be the envy of the casual dining business.

38

Food & Drinks

Chicken Fresco

Chocolate Tall Cake

Combo - Minis

Premium Baby Back Ribs

39

SWOT Analysis of Ruby Tuesday India

INTERNAL ENVIRONMENT Strength: “Tex-Mex” (short for Texas-Mexican) cuisine, its USP.

High class services - quality, ambience, and music.

A blend of international standards with an Indian touch.

It adheres to Ruby Tuesday International standards, which includes all aspects

of menus, clothes, ambience, music, etc.

Ability to import high quality international non perishable raw materials like

flour, sauces, etc.

Biggest variety in the bar menu in its class of restaurants.

Weakness: Lack of advertising through the visual media and promotional activities.

Lower number of outlets as compared to its competitors.

Highly priced items as compared to its competitors like TGIF, Geoffrey’s.

EXTERNAL ENVIRONMENT Opportunity: Fast growing market of the restaurant business.

Lack of competitors in the fine dining market.

Abolition of Fringe Benefit Tax (FBT) and Commodity Transaction Tax

(CTT).

Huge untapped market constituting of the neo rich Indian middle class.

Threat: Lesser brand awareness in the market.

Stiff competition from the lower priced restaurants like McDonalds, KFC, etc.

High rate of attrition in the industry.

40

41

Introduction to Consumer Behavior Who is a consumer – Traditionally consumer have been defined very strictly in terms of

economic goods & services i.e., where a monetary transaction is involved. However, this

concept has been widened to include goods & services where monetary exchange is not

involved.

Example: the services of a voluntary organization have been included in this definition &

users of the service of this organization are also viewed as consumers.

So a consumer is one who actually purchases a product or services from a particular

organization or shop. However, the customer is an individual, for wider term that

includes not only the actual buyer or customer but also all its users.

The term consumer behavior is defined as the behavior that consumers display in

searching for, purchasing, using, evaluating and disposing of products and services that

they expect will satisfy their needs.

Consumer Awareness The study of consumer awareness is the study of how individuals make aware to take

decisions and to send their available resources i.e., time money and efforts on

consumption related items. It includes the study of what they buy, when they buy it,

where they buy it, how often they buy it and how often they use it.

Take the simple product toothpaste consumer resources want to know what type of

toothpaste consumer buy (gel, regular, striped in a tube, with a pump); which brand

(national brand, private brand, generic brand), why they buy it (to prevent cavities, to

remove strains, to brighten or whiten teeth); where they buy it (in a super-market, drug

store, convenience store) etc.

The term Consumer Behavior describes two different kinds of consuming entities: the

personal consumers and the organizational consumers.

42

CONSUMER

PERSONAL ORGANISATIONAL

Note: - The whole study of my project is based on personal consumer because

consumer buys goods & services for their own use or consumption.

Customer Values, Attitude and Life-Style Customer value is defined as the ratio between the customers’ perceived benefits

(economic, functional and psychological) and the resources (monetary, time, effort,

psychological) used to obtain those benefits3. Perceived value is relative and subjective.

For example, diners at Ruby Tuesday, where meal with beverages may be very

expensive, may expect unique and delicious food, immaculate service, and beautiful 3 Leon G. Schiffman & Leslie Lazar Kanuk- Consumer Behavior, 8th Edition, Pearson Education

The personal consumer buys goods

and services for his or her own use

(for e.g. Shaving cream, shampoo),

for the use of household (a V.C.R.),

or as a gift for a friend (a book).

The second category of consumers-

the orgainsational consumers-

encompasses for profit and not-for-

profit businesses, government

agencies (local, state, and national),

and institutions (e.g., schools,

hospitals, and prisons) all of which

must buy products, equipment &

services in order to run their

organisation.

43

décor. Some diners may receive even more than they had expected and will leave the

restaurant feeling that the experience was worth the money and other resources expended

(such as a month-long wait for a reservation). Other diners may go with expectations so

high that they leave the restaurant disappointed.

Consumer’s attitude toward a product or specific brands off a product is a function of

the presence (or absence) and evaluation of certain product-specific beliefs and/or

attributes. In other words, consumers generally have favorable attitudes toward those

brands that they believe have an adequate level of attributes that they evaluate as positive,

and they have unfavorable attitudes toward those brands they feel do not have an

adequate level of desired attributes or have too many negative or undesired attributes.

Conducting consumer attitude research with children, especially gauging their attitudes

toward products and brands is an ongoing challenge. What is needed are new and

effective measurement approaches that allow children to express their attitudes toward

brands. To this end, researchers have labored to develop an especially simple and short

attitude measurement instrument of questioning children between 8 and 12 years of age.

44

INTRODUCTION TO LOYALTY PROGRAMS Loyalty programs are structured marketing efforts that reward, and therefore encourage,

loyal buying behavior — behavior which is potentially of benefit to the firm.

In marketing generally and in retailing more specifically, a loyalty card, rewards card,

point’s card, advantage card, or club card is a plastic or paper card, visually similar to

a credit card or debit card, that identifies the card holder as a member in a loyalty

program. Loyalty cards are a system of the loyalty business model. In the United

Kingdom it is typically called a loyalty card, in Canada a rewards card or a points card,

and in the United States either a discount card, a club card or a rewards card. Cards

typically have a barcode or magnetic strip that can be easily scanned, and some are even

chip cards. Small key ring cards (also known as key tags) which serve as key fobs are

often used for convenience in carrying and ease of access.

A retail establishment or a retail group may issue a loyalty card to a consumer who can

then use it as a form of identification when dealing with that retailer. By presenting the

card, the purchaser is typically entitled to either a discount on the current purchase, or an

allotment of points that can be used for future purchases. Hence, the card is the visible

means of implementing a type of what economists call a two-part tariff.

The card issuer requests or requires customers seeking the issuance of a loyalty card to

provide a usually minimal amount of identifying or demographic data, such as name and

address. Application forms usually entail agreements by the store concerning customer

privacy, typically non-disclosure (by the store) of non-aggregate data about customers.

The store, one might expect, uses aggregate data internally (and sometimes externally) as

part of its marketing research. These cards can be used to determine, for example, a given

customer's favorite brand of beer, or whether she is a vegetarian.

Where a customer has provided sufficient identifying information, the loyalty card may

also be used to access such information to expedite verification during receipt of cheques

45

or dispensing of medical prescription preparations, or for other membership privileges

(e.g., access to a club lounge in airports, using a frequent flyer card).

Loyalty programs Loyalty programs have been around seemingly forever (Sperry and Hutchinson Co.

launched “Green Stamps” in 1896!). Yet restaurants lack far behind other service

industries with high competition and buyer frequency — like grocery stores, hotels, and

airlines.

Why is it the case that so few restaurants offer loyalty programs? According to Direct

Magazine, it’s often due to the cost and complexity of implementing a program and

system. Sometimes too, it’s the feeling by a restaurant owner that a loyalty program is

just a glorified coupon program –

“The purpose of a loyalty program is not points or rewards or plastic cards or discounts.

These are just means to an end. It’s rather to discover who the restaurant’s customers are,

and to track their behavior, find out their preferences, cater to those preferences and keep

two-way communication going. The result should be an ever-stronger relationship with

customers that increases frequency, per-check revenue, marketing efficiency and

competitive advantage.”

The battle for restaurant patrons can be fierce and ruthless if not downright bloody.

Restaurants are high frequency markets with cutthroat competition. This makes them an

ideal business for loyalty programs. So why don't more restaurants use them?

One problem is that many restaurant owners have severe misconceptions about their

value and cost. They think the loyalty program is too expensive, won't work, or is too

much hassle to administer. The key to a successful loyalty program depends on

understanding how it really works and what it can and cannot do.

The purpose of a restaurant's loyalty program is to increase order frequency and spending

from your most loyal customers. The first thing to realize is that unless you are a

46

McDonalds or a Dominos, your most loyal customers return for your food, not your

prices. Price driven customers will visit you only when they can get a deal. They will

follow the coupons, not their taste buds.

Price driven customers may be frequent customers, but only as long as your price is right.

Your loyalty program is not going to entice cheapskates away from low end eateries to

your door. Instead, it will make loyal customers feel special. This in turn will encourage

them to come back more often and to spend more at your restaurant.

Who are your most loyal customers? Most restaurant owners believe that about 60% of their customers are frequent buyers.

This is not the case. Analysis of over a million credit card transactions show that about 15

percent of your customers purchase from you frequently. On the other hand, the small

number of loyal customers account for a third of your revenues.

This small group is who your loyalty program should target. The goal is to encourage this

small loyal following to come back more often and spend more money when they do.

How to achieve the goal? To work correctly, the loyalty program has to meet some very specific conditions. One of

the more significant findings of previous researches shows that as people make progress

towards a loyalty program goal, their efforts to achieve the goal increase. That is, the

closer customers are towards receiving their loyalty reward, the more frequently they

purchase from the restaurant.

That's the driving force which makes a loyalty program possible. Researchers have also

discovered that when progress is measured by points rather than total rupees spent,

customers will try harder to reach the program goal. And finally, it was also learned that

customers are more likely to actively participate in the loyalty program if they are given a

reason for doing so, even if it is as spurious as:

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"Thank you for signing up for our online ordering service. As a token of our appreciation

we invite you to take part in our Online Pizza Points reward program."

What Not To Reward? The biggest mistake a restaurant owner can make when selecting a loyalty reward is to

offer some sort of discount. The most loyal customers are there for the food, so it is better

to reward them with something tasty, imaginative and above all, edible.

Loyal customers don't care about discounts, they care about food. There are plenty of

ways to deal with bargain hunters, but the loyalty program should not be one of them.

Ideally, there should be a number of tasty, enticing and savory rewards to please a variety

of palates. Research has also found that the value of the reward is not a primary factor.

It is far more important that the reward be intrinsically desirable to the customer. You can

be creative with the rewards. For example, to offer sample combos of some of the more

popular entrees. Not only does this seem very special to the customer, but may lead to

future purchases of the item since it lets the customer try before they buy.

The loyalty program achieves its goal by inviting each customer to participate, providing

a selection of rewards for the participants to choose from and by awarding a point to each

participant when they place an order. Each participant is kept advised of his or her

progress and when they have accumulated enough points, they can trade them in for their

reward.

Does this sound simple and obvious? You bet it does.

Does it work? Yes indeed.

It is critical that customers know their progress towards reaching the program goal. With

an online loyalty program this is done automatically. Every time a customer signs in to

their account, they see their loyalty program points.

48

With paper or card based programs, they should see a punch card or some tangible

evidence of their progress.

The results of a loyalty program are measurable. Loyalty programs are long term

investments, but when properly implemented, they are well worth your time and effort.

Working Statistics show that customers belonging to a loyalty program visit a business, on

average, twice as often, and spend four times as much money.

49

It is five to seven times more expensive to find a new customer than to retain an existing

one. This means that every rupee spent on marketing to an existing customer will return

5x more profit than the same dollar on new customers.

With numbers like that, it is critical that the marketing to existing customers is as

effective as possible. Past results, have shown that our cards enjoy a 22% better response

rate over other direct mail campaigns.

The power of the data base comes into play with extensive business reporting.

Members information like sign ups by month, sales year to date and sales by month are

provided. Also the top percentage of customers by dollar spent amount and by visit

frequency keeps you informed about progress.

Quick reports, daily reports, monthly and quarterly reporting keeps you fully informed

about how your customer relationship system is meeting your short and long range goals

for the business.

In this age of “drive-by Internet reviews“, a properly designed loyalty program that

couples an in-store component with an online component can even help reduce the

feeling of increasingly anonymous user-generated drive-by reviews, by building

engagement and conversation between the restaurant and the diner.

Loyalty programs in India I-mint is India's largest coalition loyalty program, with approximately 5 million members.

BPCL's PetroBonus is a pioneering program and also one of the largest in the country

with about 2 million members for the fuel card program. It also has variants for fleets and

convenience store customers. Likewise IOC's Fleet Card Program XTRAPOWER has

recently crossed 1 million mark. IOC has launched a loyalty program XTRAREWARDS

for Retail Customers. The Maruti Suzuki AutoCard, launched in association with

Citibank and Indian Oil had 370,000 cardholders as at October 2008.

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RUBY TUESDAY LOYALTY PROGRAM Neighborhood Advantage Program

Basic objective of Launch of Neighborhood Advantage Program is to increase the sales at

the Outlets (Units) of Ruby Tuesday (RTC Restaurants) and related restaurants.

The reason for the launch of this loyalty card is to create awareness about the restaurants

and inform people about the various benefits which they can have by dining there. The

raise in sales is being expected by increasing the amount of footfall due to grown interest

and awareness about the restaurants and the associated paybacks.

This program is for all guests who reside in close proximity to various RTC restaurants.

This is a “Free Benefits Card” specially designed for discerning neighbors who dine out

regularly.

As a neighborhood advantage club member, one can avail the benefits and privileges at

Ruby Tuesday, Sbarro, Mandarin Trail and Polka outlets across India. As a

neighborhood Advantage Card holder one can avail al of the benefits listed below:

51

This card is Free of Charge

Discount benefits are applicable at all Ruby Tuesday, Sbarro, Mandarin Trail

& Polka outlets across India.

One can collect Loyalty Points every time one dine with these mentioned

restaurants and the points can later be redeemed for free meals

Benefits at Ruby Tuesday, Sbarro, Mandarin Trail & Polka

Discount Loyalty Points on

every Rs 100/- spent

Ruby Tuesday 15% 10

Sbarro 10% 10

Mandarin Trail 15% 10

Polka 10% 10

Loyalty points are provided on net amount after discount, excluding applicable taxes and

service charge

For example: if your order amount at Ruby Tuesday is Rs 2000/-, you get discount of Rs

300/-. You earn loyalty points on balance amount of Rs 1700/-, i.e. 170 points that can be

redeemed later. This way you save Rs 470 on your visit with this card.

Minimum points required for redemption at different restaurants are:

Ruby Tuesday 500 Points

Sbarro 250 Points

Mandarin Trail 500 Points

Polka 250 Points

52

“Consumer Awareness towards Ruby Tuesday

&

Consumer Response to the Launch of Loyalty Program”

53

RESEARCH OBJECTIVES Assess the customer awareness of Ruby Tuesday brand.

Know the customer preferences while visiting Ruby Tuesday.

Understanding the values, attitude and life-style of RubyTuesday customers.

Response to the launch of the loyalty program.

Suggest plans and recommendations to garner higher footfalls into RubTuesday

outlets.

RESEARCH DESIGN Type of Research: The research was a combination of both Descriptive and Qualitative type of research.

Descriptive Research includes surveys & fact-finding enquiries of different kinds. Its

major purpose is to describe the state of affairs as it exists at present & the researcher has

no control over the variables. It includes attempts by researchers to discover causes even

they cannot control variables.

Qualitative research, on the other hand, is concerned with qualitative phenomenon, i.e.

phenomena relating to or involving quality or kind. Qualitative research is especially

important in the behavioral sciences where the aim is to discover the underlying motives

of human behavior.

As the data used is collected through questionnaires & it deals with attitudes and behavior

of peoples which comes under descriptive & qualitative type of research. Questionnaires

were used to do the research.

54

SAMPLE DESIGN Sampling may be defined as the selection of some part of an aggregate or totality on the

basis of which a judgment or inference about the aggregate or totality is made. It is the

process of obtaining information about an entire population by examining only a part of it

in which generalizations or influences are drawn based on the samples about the

parameters of population from which the samples are taken.

Simple Random Sampling is used in analyzing consumer behavior and perception.

Initially the questionnaire4 was administered to 462 respondents, randomly selected by

mall intercepts, and further research was conducted on those respondents who were

aware of Ruby Tuesday. It was found that only 106 respondents were aware of Ruby

Tuesday.

For the purpose of analyzing the customers’ response to the launch of loyalty program5,

telephonic survey method was used. The respondents were chosen randomly who were

situated in the closed proximity of Ruby Tuesday outlets. The phone numbers were taken

from the RWA Directory of GK-I, GK-II, Mandakani & Nilgiri Appartments, Saket etc.

A total of 129 respondents were given a phone call and further survey was conducted

who had visited Ruby Tuesday at least once. It was found that 80 respondents out of 129

have visited Ruby Tuesday.

Sample size: 106. (Mall Intercepts)

Sample size: 80 (Telephonic Survey)

Sample location: close proximity of Ruby Tuesday restaurant outlets in New Delhi.

4 Annexure I: Consumer Awareness towards RubyTuesday. 5 Annexure II: RubyTuesday Loyalty Program

55

SCOPE OF STUDY The research was carried out to know the customer behavior and perception of customers

about Ruby Tuesday. The main motive was to find:

Attitude of the customer.

General perception of the customer about the products and services offered by

Ruby Tuesday.

How did they come to know about Ruby Tuesday?

Experiences while dining in Ruby Tuesday.

Suggestions and scope of improvement for brand Ruby Tuesday.

This data is very important for Ruby Tuesday in order to know the customers’ preference

and thus help in increasing the Number of Transactions.

LIMITATIONS 1) TIME During the internship, time was the main constraint. It was only 2 months, and it was not

possible to access the response of customers who have taken the neighborhood advantage

card. Due to this we were not able to take more samples and hence the sample size has to

be restrained.

2) VAST AREA OF STUDY Due to time constraint we are unable to meet the potential customers in Noida and

Gurgaon and hence were unable to get the customer feedback of neighborhood advantage

card from these two regions of NCR.

56

57

DATA ANALYSIS Based on what the various respondents’ opinion, the data collected was analyzed using

figures. No rigorous mathematical analysis could be done. All estimations are solely on

judgment. For questions percentage was calculated and represented in the form of charts.

After representing the data in the form of charts the same were interpreted to get in-depth

knowledge about the problem as well as general information, which helped the researcher

to come at appropriate conclusions about the study and to give relevant

recommendations.

FIELD WORK The survey was conducted for 25 days in New Delhi. Some major places where survey

was conducted are Nehru place, Janak Puri, Greater Kailash-II and Saket.

Data Representation To represent the data collected through mall-intercepts and telephonic survey, I used

some graphical charts, tables and statistical tools.

58

TABLE NO. 1

ABOUT THE VISITING PATTERN OF RESPONDENTS

Respondent Category Frequency Percentage

Once a Year 20 19%

Once a Month 27 25%

Once a Week 7 7%

Twice a Year 11 10%

Twice a Month 26 25%

Twice a Week 9 8%

Can’t Say 6 6%

Objective

Here the underlying objective was to know the dinning pattern of

respondents. It may help in targeting those customers who can make more

numbers of transactions.

Interpretation

It is evident from the above table that about 19% of the respondent goes out

for dinning once a year, 25% goes out once a month and 7% goes out for

once a week. It is also clear that about 10% of the respondents go out for

dinning twice a year, 25% goes out twice a month and 8% goes twice a

week. About 6% of the respondents are not sure about their dinning pattern.

59

19%

25%

7% 10%

25%

8% 6%

Once a week

Once a month

Once a year

Twice a week

Twice a month

Twice a year

Cant Say

ABOUT THE DINNING PATTERN OF CUSTOMERS

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TABLE NO. 2

ABOUT THE AGE OF THE CUSTOMERS

Respondent Category Frequency Percentage

Below 18 years 5 5%

18 to 30 years 43 40%

30 to 45 years 38 36%

Above 45 years 20 19%

Interpretation

It is evident from the above table that about 5% of the respondent were

below 18 years, about 41% were between 18 to 30 years, and about 36% ere

between 30 to 45 years and about 19% were above 45 years.

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5%

40% 36%

19%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Below 18 18 to 30 30 to 45 Above 45

ABOUT THE AGE OF CUSTOMERS

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TABLE NO. 3

ABOUT THE AWARENESS OF RUBY TUESDAY AMONG THE

RESPONDENTS

Respondent Category Frequency Percentage

Yes 106 23%

No 351 77%

Interpretation

It is evident form the above table that about 23% of the respondents were

aware about Ruby Tuesday whereas 77% were not aware about Ruby

Tuesday.

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23%

77%

0%

10%

20%

30%

40%

50%

60%

70%

80%

YES NO

ABOUT THE AWARENESS AMONG RESPONDENTS

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TABLE NO. 4

ABOUT THE INCOME (in Rs. ) OF RESPONDENTS

Respondent Category Frequency Percentage

Below 10,000 0 0%

10,000 to 49,999 8 8%

50,000 to 99,999 23 22%

100,000 to 149,999 36 34%

150,000 to 199,999 25 24%

200,000 or more 14 13%

Objective Here the underlying objective is to know which income group buyers should

be targeted so as to increase the number of transactions.

Interpretation

It is evident from the above table that total household income of about 8% of

the respondents fall within income group 10,000-49,999 rupees, 22% fall

within income group 50,000-99,999 rupees, 34% fall within income group

100,000-149,999, 24% fall within income group 150,000-199,999 rupees,

whereas 13% of respondents fall within income group of 200,000 or more.

65

About The Income (in Rs. '000) of Respondents0%

8%

22%

33%

24%

13%

Less than 10 10 to 50 50 to 100 100 to 150 150 to 200 More than 200

66

TABLE NO. 5

ABOUT THE PURPOSE OF VISITING RUBY TUESDAY

Respondent Category Frequency Percentage

Quality of Food & Beverages 67 63%

Fast Service 64 60%

Nearest to Customers 56 53%

Interest of Customers 78 74%

Ambience 73 69%

Interpretation It is evident form the above table that about 63% of the respondents said that

they were visiting the Ruby Tuesday outlets because of the quality of food

offered, 60% were visiting because of fast service, 53% were visiting

because it is nearest to them, 74% just because of interest and 69% said that

they were visiting Ruby Tuesday because of ambience.

This table does not represent that the total number of respondents is 106

because there were some respondents who choose multiple categories in

order to respond, i.e., some respondents marked two or more than two

options in this category. Frequency in each category represents that an

option was marked by those number of respondents out of 106.

67

63% 60%

53%

74% 69%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Quality Service Nearest Interest Ambience

About The Purpose of Visiting RubyTuesday

68

TABLE NO. 6

ABOUT THE SOURCE OF AWARENESS AMONG CUSTOEMRS

Respondent Category Frequency Percentage

Friends and Peers 38 36%

Print Advertisements 37 35%

Radio 18 17%

Corporate Tie-ups 9 8%

Others 4 4%

Objective The main objective of this statement in the questionnaire is to find out which

is the most widely used source of awareness so that the company can plan its

advertising tool(s) to create awareness among a large number of people.

Interpretation It is evident form the above table that about 36% of the people new about

Ruby Tuesday through word of mouth from their friends, peers, relatives,

colleagues, etc. 35% of the people had seen an advertisement in the print

either in a newspaper, magazine or in leaflets. A sizeable amount of 17%

had heard of Ruby Tuesday on the radio and FM channels. Awareness

through corporate tie – Ups (like with credit card companies) accounted for

8% of the people. Rests were through other mediums like internet, social

networking sites, etc.

69

4%

35% 36%

17%

8%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Others Print Advertisements

Friend and Peers

Radio Corporate Tie-ups

ABOUT THE SOURCE OF AWARENESS AMONG CUSTOEMRS

70

TABLE NO. 7

ABOUT THE LOALITY OF

CUSTOMERS FOR RUBY TUESDAY

Respondent Category Frequency Percentage

Patient 39 37%

Depend on Circumstances 37 35%

Impatient 30 28%

Interpretation

It is evident form the above table that about 37% of the respondents were

loyal to Ruby Tuesday, 35% said that their loyalty to Ruby Tuesday

depended on circumstances and 28% were impatient about it.

71

37% 35%

28%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Yes Depend Upon

Circumstances

Can Change

About The Loyalty of Customers for RubyTuesday

72

TABLE NO. 8

About the Visiting Pattern of Customers When Ruby Tuesday Outlet is

Not Available to Their Locality

Respondent Category Frequency Percentage

Visit nearest Outlet 45 42%

Order for Free Home Delivery 15 15%

Visit Other Restaurant 46 43%

Interpretation

It is evident form the above table that about 42% of the respondents will

visit the nearest outlet of Ruby Tuesday when it is not available to their

locality, 43% will search visit an outlet of any other restaurant, while 15%

respondents says that they will order for a free home delivery.

73

42% 43%

15%

0%

10%

20%

30%

40%

50%

Visit Nearest Outlet Visit Other Restaurant Order Home Delivery

About The Visiting Pattern of Customers When RubyTuesday

Outlet is not Available to Their Locality

74

TABLE NO. 9

ABOUT THE BENEFITS (TO CUSTOMERS) PERCIEVED BY THE

RESPONDENTS FROM RUBY TUESDAY

Respondent Category Frequency Percentage

Yes 48 45%

No 23 22%

Can’t Say 35 33%

Interpretation

It is evident form the above table that about 45% of the respondents who

were aware of Ruby Tuesday and who had dined at Ruby Tuesday really feel

benefited by Ruby Tuesday because of its foreign environment casual

dinning, 22% were not benefited and 33% were not sure.

75

45%

22%

33%

0%

10%

20%

30%

40%

50%

Yes No Can't Say

About the Benefits Perceived By RubyTuesday Customers

76

TABLE NO. 10

ABOUT THE ADVERSE EFFECT ON WELFARE OF SOCIETY

Respondent Category Frequency Percentage

Yes 29 27%

No 30 38%

Can’t Say 37 35%

Interpretation

It is evident form the above table that about 27% of the respondents felt that

Ruby Tuesday is adversely affecting the welfare of society. About 38% felt

that there is no adverse affect of Ruby Tuesday, whereas 35% were not sure

about it.

77

27%

38% 35%

0%

10%

20%

30%

40%

Yes No Can't Say

About The Adverse Effect of RubyTuesday on Welfare of Society

78

TABLE NO. 11

ABOUT THE SATISFACTION OF RUBY TUESDAY CUSTOMERS

Respondent Category Frequency Percentage

Yes 46 43%

No 26 25%

Can’t say 34 32%

Interpretation

It is evident form the above table that about 43% of the respondents said that

they are satisfied with the services offered by Ruby Tuesday, while 25% said

that they are not satisfied with Ruby Tuesday and it need to improve itself

on certain parameters and 32% respondents were not sure about their

satisfaction.

79

43%

25%

32%

0%

10%

20%

30%

40%

50%

Yes No Can't Say

About the Satisfaction of RubyTuesday Customers

80

Comparative Analysis of Ruby Tuesday In order to compare the performance of Ruby Tuesday in the casual dinning market,

respondents were asked to mark it on several parameters according to the following five

preferences:

1 = Strongly Disagree

2 = Disagree

3 = Neither Disagree Nor Agree

4 = Agree

5 = Strongly Agree

In order to find the perceived level of performance of Ruby Tuesday in comparison to

other casual dinning restaurants in India, I was required to find out the overall level of

performance. For finding this, only comparison statements (12.a-12.f) have been

considered. This has come at:

Mean 3.632075

Median 3.666667

Mode 3.666667

Standard Deviation 0.431999

Sample Variance 0.186623

Kurtosis -0.20405

Skew ness -0.44584

Maximum 4.5

Minimum 2.666667

Sum 385

Count 106

So, we can say that the perceived level of performance of Ruby Tuesday in comparison to

other restaurants in India is at 3.632, which is in between ‘Neither Disagree Nor Agree’

and ‘Agree’. This value is closer to ‘Agree’, i.e. better performance.

81

We can also check that whether this performance is affected by the dinning behaviour of

customers in a particular category.

H0: µ (mean of sample) =3.632

H1: µ ≠ 3.632

In words:

Null Hypothesis : the level of comparative performance is equal for all dinning

pattern of customers.

Alternate Hypothesis: the level of comparative performance is different for different

dinning pattern of customers.

Taking those respondents first who dine Twice a Week.

Average of all the respondents from Twice a Week category

Respondents Details

3.5 Mean 3.833333

4 Median 3.833333

3.666667 Mode 3.666667

3.5 Standard Error

4 Standard Deviation 0.268742

3.833333 Sample Variance 0.072222

3.666667 Kurtosis -0.53254

4.166667 Skew ness 0.524762

4.333333 Maximum 4.333333

3.666667 Minimum 3.5

3.833333 Sum 42.16667

Count 11

Sample mean = 3.833,

Sample standard deviation (σ) = 0.268 &

Sample size (n) =11

82

Because σ is known , sample size(n) is less than 30 & we know about the direction of the

claim of empowerment which is less than. So, we use z-test.

Here population mean (µ) =3.632, level of significance = 5%

Z (tabulated Value) =1.96

Formula of z-test (two tail),

Z calculated = 2.487

Since Z calculated > Z tabulated, we have enough evidence to reject null hypothesis.

This means that the perceived level of performance by Ruby Tuesday as compared to

other restaurants is affected by the dinning pattern of those customers who dine Twice a

Week at 95% confidence interval.

Similarly, we can calculate the z (cal. Value) of the entire dinning pattern by using

ANOVA and in all the cases the null hypothesis is rejected, i.e. the perceived level of

performance of Ruby Tuesday depends on customers’ dinning pattern.

Anova: Single Factor SUMMARY: Dinning Pattern

Groups Count Sum Average Variance Once a Year 7 26 3.714286 0.099206 Twice a Year 9 35.33333 3.925926 0.271605 Once a Month 27 89.83333 3.32716 0.193336 Twice a Month 26 97.5 3.75 0.180556 Once a Week 20 73 3.65 0.116667 Twice a Week 11 42.16667 3.833333 0.072222 Cant Say 6 21.16667 3.527778 0.026852 ANOVA

Source of Variation SS

Degree of freedom

Margin of Safety

F calculated P-value F critical

Between Groups 4.213524 6 0.702254 4.519813 0.000433 2.191549 Within Groups 15.38186 99 0.155372 Total 19.59539 105

83

Interpretation

So, we can say that the perceived level of performance by Ruby Tuesday in

the casual dinning restaurants industry is in good condition and is currently

between equilibrium and better stage. This applies to all the aware

respondents taken into account in this research.

84

Research Question: How can background variables of respondents like age,

income, source of awareness be linked to comparative performance

variables? (… i.e. do the average scores for six factors differ on the basis of

age, income, source of awareness etc.?) Brief description: There are many factors that affect the consumers buying behavior.

These factors may act as a major influencer when consumers make a decision to dine

outside. These factors have a direct relationship with consumers’ perception. Therefore,

in order to find out the relationship between these background variables of consumers

and their perception about the performance of Ruby Tuesday as compared to other casual

dinning restaurants, this research was carried out.

1. AGE H0: µ1 = µ2 = µ3 = µ4

H1: µ1 ≠ µ2 ≠ µ3 ≠ µ4

Here, we will test whether the means of various age-groups of all the respondents, taken

individually, are equal.

We will test this with the ANOVA

Anova: Single Factor SUMMARY: Age

Groups Count Sum Average Variance Below 18 Years 5 18.66667 3.733333 0.077778 18 to 30 Years 43 158.1667 3.678295 0.14338 30 to 45 Years 38 135.8333 3.574561 0.224771 Above 45 Years 20 72.33333 3.616667 0.245906 ANOVA

Source of Variation SS df MS F P-value F crit

Between Groups 0.27357 3 0.09119 0.481393 0.695943 2.693721 Within Groups 19.32182 102 0.18943 Total 19.59539 105

85

Interpretation: Here, F calculated < F critical at 95% confidence interval. So, we fail to

reject the null hypothesis. This means the perceived level of performance is same for all

the age groups of respondents.

2. INCOME H0: µ1 = µ2 = µ3 =…………….till µ6

H1: µ1 ≠ µ2 ≠ µ3 ≠…………… till µ6

Here, we will test whether the means of all the respondents, taken individually according

to their respective income, are equal.

Anova: Single Factor SUMMARY: Income

Groups Count Sum Average Variance Less than 10000 0 0 #DIV/0! #DIV/0! 10000-50000 8 30.5 3.8125 0.114583 50000-100000 23 81.5 3.543478 0.202569 100000-150000 36 131.1667 3.643519 0.224052 150000-200000 25 91.16667 3.646667 0.144259 More than 200000 14 50.66667 3.619048 0.198413 ANOVA Source of Variation SS df MS F P-value F crit

Between Groups 0.453374 5 0.090675 0.473696 0.795086 2.305318 Within Groups 19.14201 100 0.19142 Total 19.59539 105

Interpretation: Here, F calculated < F critical at 95% confidence interval. So, we fail to

reject the null hypothesis. This means the perceived level of performance is same for all

the income groups of respondents.

86

3. Source of Awareness H0: µ1 = µ2= µ3= µ4= µ5

H1: µ1 ≠ µ2≠ µ3≠ µ4≠ µ5

Here, we will test whether the means of all the respondents, taken individually according

to the source from which they get to know about Ruby Tuesday, are equal.

Anova: Single Factor SUMMARY: Source of Awareness

Groups Count Sum Average Variance Others 4 14 3.5 0.185185 Print Advertisements 37 134.1667 3.626126 0.225934 Friends and Peers 38 143.1667 3.767544 0.137447 Radio/FM 18 64.5 3.583333 0.10866 Corporate Tie-ups 9 29.16667 3.240741 0.222994 ANOVA

Source of Variation SS df MS F P-value F crit Between Groups 2.189499 4 0.547375 3.176216 0.016739 2.461698 Within Groups 17.40589 101 0.172336 Total 19.59539 105

Interpretation: Here, F calculated > F critical at 95% confidence interval. So, we have

sufficient evidence to reject the null hypothesis. This means the perceived level of

performance was affected by the source from which people came to know about Ruby

Tuesday. Friends and Peers played an important role in influencing the dinning decision

of consumers while Corporate Tie-ups and others means had least affect.

4. Locality H0: µ1 = µ2= µ3

H1: µ1 ≠ µ2≠ µ3

Here, we will test whether the means of all the respondents, taken individually according

to their dinning behavior is a Ruby Tuesday is not available to their locality, are equal.

87

Anova: Single Factor

SUMMARY: Locality

Groups Count Sum Average Variance Visiting Nearest 45 164 3.644444 0.19899 Ordering Home Delivery 15 51.66667 3.444444 0.181217 Visiting Other 46 169.3333 3.681159 0.170156 ANOVA

Source of Variation SS df MS F P-value F crit Between Groups 0.64579 2 0.322895 1.755088 0.178023 3.084577 Within Groups 18.9496 103 0.183977 Total 19.59539 105

Interpretation: Here, F calculated < F critical at 95% confidence interval. So, we fail to

reject the null hypothesis. This means the perceived level of performance is same whether

a Ruby Tuesday outlet is available to the locality or not.

In all the four basic factors measured above, it was found that age, income and locality of

customers does not affect the perceived level of comparative performance of Ruby

Tuesday. But source of awareness among customers is the major factor which influences

the customer’s perception about Ruby Tuesday. Therefore, the company should put much

focus on these sources of awareness.

88

ANALYSIS OF CUSTOMERS’ RESPONSE TO

LOYALTY PROGRAM

1. Experience of visiting Ruby Tuesday –

58%

42%

0%

10%

20%

30%

40%

50%

60%

Yes No

About the Dinning Experiance at Ruby Tuesday

Inference – Amongst the people who have heard of Ruby Tuesday, only 58% of them have actually

visited the restaurant. This shows a poor conversion rate from the brand awareness to the

actual footfall in the restaurant. The reason for this could be anything from high prices to

being new to the concept of fine dining or the “American type of cuisine”.

89

2. Spending of the consumer per visit –

Inference – The customers tend to spend a lot while visiting Ruby Tuesday as it is evident from the

data with 31% of the respondents spending more than Rs.2000 per visit. 24% of the

respondents spend between Rs.1500-2000, while a maximum 33% of the respondents

spend between Rs.1000- 1500 per visit to the restaurant. Only a small number of 12%

spend less than Rs.1000 per visit. This reinforces Ruby Tuesday as a restaurant with a bar

for the high classes of the society. It is truly a fine dining restaurant, at least in terms of

its prices.

12%

33%

24%

31%

0% 5%

10% 15% 20%

25% 30% 35%

Less Than 1000

1000-1500 1500-2000 More than 2000

Expenditure per visit by the Customer

90

3. Percentage of income spent on restaurants –

Inference – A maximum of 36% of the people spend anything between 10%-20% of their monthly

incomes on dining and drinking outside of their respective homes. A close 34% of the

people spend even more, between 20%-30% of their monthly incomes at restaurants. A

sizeable amount of 23% of the people spend the most part of their incomes, that is more

than 30% of their monthly incomes on dining and drinking outside. Only 7% of the

people spend only 5%-10% of their monthly incomes in restaurants, preferring rather to

eat at homes most of the times.

This clearly shows that it is in the nature of people in New Delhi to dine out and they are

also willing to pay for it handsomely.

Proportion of Income Spent on Restaurants

7%

36%34%

23%

0%

5%

10%

15%

20%

25%

30%

35%

40%

5%-10% 10%-20% 20%-30% More than 30%

91

4. Awareness of the “Tex-Mex” cuisine of Ruby Tuesday –

Inference – Only 28% of the people who have heard of Ruby Tuesday were aware of the type of

cuisine the restaurant serves, which is the Texas-Mexican cuisine (Tex-Mex). This

indicates the level of customer awareness towards the Ruby Tuesday brand is quite

shallow. Most of the 72% of the unaware people thought it served mostly burgers and

salads.

92

5. Customer preference to discounts and loyalty program –

Inference – Most, that is, 39% of the people preferred a free loyalty card which would fetch discounts

as well as reward points. A slightly lesser number, 32%, preferred just discount coupons,

which can be used only for one visit. But, a sizeable number of 28% were willing to pay

for a loyalty card that would fetch bigger discounts and more reward points for the

customers to redeem in the future. Only 1% neither wanted any discount-coupons nor any

loyalty cards.

32% 28%

39%

1%

0% 5%

10% 15% 20% 25% 30% 35% 40%

Discount Coupons

Paid Loyalty Card

Free Loyalty Card

No Loyalty Card

About The Preference to Loyalty Cards

93

6. Awareness of the Loyalty Programs of Ruby Tuesday –

Inference – It is evident from the above chart that 41% of the respondents who were aware of Ruby

Tuesday, knew about the existence of its loyalty programs as well. This also shows the

shallow knowledge of the consumer regarding the services provided by Ruby Tuesday to

its customers.

94

7. Choice between the Loyalty Programs –

Inference – 72% of the people, who are aware of the existence of a loyalty program at Ruby Tuesday,

do so about the paid loyalty program called “Ruby Regular” loyalty program. The rest

28% of the people know about the newly launched “Neighborhood Advantage Card”,

which is a free loyalty program.

72%

28%

95

8. About the increase in frequency of visits to Ruby Tuesday if a loyalty card is owned–

Inference – Maximum number, i.e., 52% of the people thinks that owning a loyalty card will spur

them on to visit Ruby Tuesday more frequently than before. 32% think otherwise and say

it will not affect their frequency of visits to the restaurant. The remaining 17% of the

people can not say about it.

This shows that loyalty programs are and will be a hit amongst the customers and will

drive the restaurants by increasing the number of footfalls in it.

96

97

RECOMMENDATIONS 1) Ruby Tuesday has less brand awareness, as compared to its direct competitors and

other restaurants like AppleBees®, Bennigans®, Ponderosa, Houlihans and TGI

Fridays®, and McDonalds, Pizza Hut, Indochine, etc. Thus, the management should

devise more marketing strategies to increase its brand awareness as well as the

awareness of its products. This would be helpful in beating the present competitors as

well as facilitate in the future as the fine dining market is still growing in India.

2) Ruby Tuesday should advertise heavily through leaflets and flyers in the

neighborhood areas and colonies of its outlets. This would encourage the potential

customers to come in and also to activate the newly launched loyalty card that has

been distributed free of cost in the neighborhood colonies of the Ruby Tuesday

outlets.

3) Apart from the existing print and radio advertisement, Ruby Tuesday should go in for

television advertisements. This would help create brand awareness as well as a brand

image (with the help of its products being viewed in the ad) amongst the potential

customers, as television now is the medium having the maximum reach direct into the

homes of the people.

4) There is a growing market for fine dining experiences amongst the neo-rich and the

increasingly wealthy Indian middle-class these days. Ruby Tuesday should try and

tap this potential market.

5) Ruby Tuesday should improve upon its quickness and quality of services and the

servers, respectively, in the outlets. Also, the music at the outlets needs to be fresh,

innovative and non repetitive.

6) Proper training and soft skills should be imparted to the servers, so that they have

adequate knowledge of the cuisine as well as of the bar, and are more courteous to the

customers.

98

CONCLUSION Customer delight continues to be the key driver’s of today’s marketing operations,

especially in the casual fine dining sector. There is tremendous competition in the

restaurant industry, with both domestic and international players existing, and leadership

can only be achieved by constantly delivering customer delight and each time creating an

experience worth remembering for in the whole life of the guest.

Although there is an immense market for the fine dining segment, it has not been tapped

enough by Ruby Tuesday, mainly due to its lack of brand awareness amongst the

customers.

Also, after the introduction of the new loyalty program, Ruby Tuesday should identify its

loyal customer base, and then cater to their wants and needs specifically. Aggressive

marketing and swift promotion of the program in the major colonies and areas should see

fast results in terms of increasing footfalls in the outlets and newer activations of the free

loyalty cards each day.

Ruby Tuesday should be proactive and create enough customer awareness in the market

so as to take advantage of the upcoming Commonwealth Games in the city of New Delhi.

With over more than 6000 athletes from all over the world, it will be one of the biggest

sporting extravaganzas of the country ever, having a major international presence, which

can be cashed in by Ruby Tuesday.

99

100

BIBLIOGRAPHY

BOOKS Kotler Philip- Keller Kevin Lane, Marketing Management, 12th Edition, Pearson

Education.

Naresh K. Malhotra, Marketing Research- An Applied Orientation, 5th Edition,

Prentice Hall Inc.

Leon G. Schiffman & Leslie Lazar Kanuk- Consumer Behavior, 8th Edition,

Pearson Education.

WEBSITES www.rubytuesday.com

www.google.com

www.rtcindia.co.in

www.wikipedia.org

101

102

CUSTOMER AWARENESS TOWARDS

RubyTuesday Name: Phone:

Designation: E-mail:

1. How often do you go for dinning outside?

a) Once a year b) Twice a year

c) Once a month d) Twice a month

e) Once a week f) Twice a week

g) Can’t Say

2. Your Age-

a) Below 18 years

b) From 18 to 30 years

c) From 30 to 45 years

d) Above 45

3. Are you aware of Ruby Tuesday?

a) Yes b) No

4. What is your total household income (in Rs.) per month? a) Less than 10,000 b) 100,000 - 149,999

c) 10,000 - 49,999 d) 150,000 -199,999

e) 50,000 - 99,999 f) 200,000 or more

5. For which purpose do you visit Ruby Tuesday?

a) Because of quality product

b) Because of quick service

c) Because it is the nearest to you

d) Just because of Interest

e) Ambience

f) All of the above

Annexure I

103

6. How did you come to know about brand Ruby Tuesday?

a) Friends and Peers

b) Print Advertisements

c) Radio/FM

d) Corporate Tie-ups

e) Others

7. If Ruby Tuesday outlet is not available to your locality, you would prefer to

a) Visit the nearest outlet of Ruby Tuesday

b) Order for a free home delivery

c) Visit any other restaurant to your locality

8. Do you really feel benefited by Ruby Tuesday?

a) Yes

b) No

c) Can’t say

9. Are you loyal to brand Ruby Tuesday or can you change the brand?

a) Will stick to Ruby Tuesday

b) Depends upon circumstances

c) Can Change

10. Do you think that Ruby Tuesday is adversely affecting the welfare of society?

a) Yes

b) No

c) Can’t say

11. Are you satisfied with the services provided at Ruby Tuesday?

a) Yes

b) No

c) Can’t say

104

12. Please round the number as per your choice.

Strongly Disagree

Disagree Neither Agree Nor Disagree

Agree Strongly Agree

a) The Speed of Service at Ruby Tuesday

is better than other restaurants. 1 2 3 4 5

b) Quality of food served at Ruby

Tuesday is better than other restaurants.

1 2 3 4 5

c) Beverages offered at Ruby Tuesday

are better than other restaurants. 1 2 3 4 5

d) Ambience is better in Ruby Tuesday

than other restaurants. 1 2 3 4 5

e) Cleanliness in Ruby Tuesday is better

than other restaurants. 1 2 3 4 5

f) Music Played at Ruby Tuesday is

better than other restaurants. 1 2 3 4 5

13. Please give your suggestions for improving the brand image?

________________________________________________________

________________________________________________________

________________________________________________________

Thank you for participating in our research…… ----- Regards, Robin Jindal Management Trainee (May-June 09)

RTC Restaurants (I) Limited 705, Chiranjiv Tower, 43, Nehru Place New Delhi – 110 019 Mob: +91 991110 7519

105

RubyTuedsay Loyalty Program 1) Have you dined at Ruby Tuesday?

Yes No

2) How much approximately do you spend when you dine at Ruby Tuesday?

Less than 1000

1000-1500

1500-2000

More than 2000

3) What percentage of your monthly income do you usually spend dining outside?

5%-10%

10%-20%

20%-30%

More than 30%

4) Do you know that Ruby Tuesday serves “Tex-Mex” cuisine?

Yes No

5) What would you prefer to have?

Discount Coupons

Paid membership card with higher discounts

Free membership card with lesser Discounts

No membership/Loyalty card

6) Are you aware of any Ruby Tuesday loyalty programs?

Yes No

7) If “Yes”, then which one?

Ruby Regular (Paid membership + Higher discounts)

Neighborhood Advantage Card (Free membership + Lower discounts)

8) Would owning a loyalty card increase your visits to Ruby Tuesday?

Yes No Can’t Say

Annexure II

106

Locations of RTC’s Outlets in Delhi & NCR- UNIT NO OF OUTLET LOCATIONS

Ruby Tuesday 8 Saket - PVR Anupam Complex

Nehru Place - Satyam Cineplex

Greater Kailash II

Janak Puri - Satyam Cineplex

Raja Garden - TDI Mall

Rohini – Unitech Metro Walk

Noida – The Centre Stage Mall

Gurgaon – DLF City Centre Mall

Mandarin Trail 1 Noida - Great India Place Mall

Polka 2 Kailash Colony Market

Faridabad - Crown Plaza Mall

Sbarro 13 Nehru Place - Satyam Cineplex

Saket - PVR Market

Noida - Great India Place Mall

Kaushambi - EDM Mall

Noida - Centre Stage Mall

Janakpuri - Distric Centre

Gurgaon - DT Mall

Gurgaon - Ambience Mall

Laxmi Nagar - V3S Mall

Rajouri Garden - TDI Mall

Greater Kailash II

Kailash Colony Market

Connaught Place

Annexure III