Ruth's Chris Steak House: A History of Resilience and Growth
The story of Ruth's Chris Steak House is more than just a chronicle of fine dining; it is a testament to entrepreneurial spirit and perseverance. From its humble beginnings as a small New Orleans eatery to its evolution into a global hospitality powerhouse, the brand has navigated fires, hurricanes, and economic shifts to become a household name in the steakhouse industry.
The Early Years: Chris' Steak House (1927–1965)
Long before it became a global chain, the establishment began as Chris' Steak House. Founded on February 27, 1927, by New Orleans entrepreneur Chris Matulich, the restaurant was located at 1100 North Broad Street near the Fair Grounds Race Course. With a modest capacity of 60 guests and no dedicated parking lot, the business experienced a volatile early history. Over Matulich's 38-year tenure, the restaurant was sold six times; however, each subsequent owner failed, allowing Matulich to buy the business back at a low cost each time.
Decades later, the original site remained a point of local interest, though it became the center of a historic preservation dispute in 2022 when a new owner demolished its iconic terracotta-tile wraparound awning without the necessary permits.
[ไม่มีภาพประกอบ]The Ruth Fertel Era (1965–1999)
Acquisition and Early Struggles
In 1965, Ruth Fertel, a divorced single mother seeking to fund her sons' college education, purchased the restaurant. Despite warnings from her lawyer, banker, and friends, Fertel leaned on family recipes and the influence of her brother's establishment, Sig's Antique Restaurant in Port Sulphur, Louisiana. While she initially aimed to raise $18,000 (approximately $183,900 in 2025), she eventually needed an additional $4,000 (approximately $41,000) for food and renovations. On her opening day, May 24, 1965, she sold 35 steaks at $5 each (equivalent to $50 today).
Fertel was deeply involved in every operational detail. Notably, for many years, her establishment stood out as the only upscale restaurant in New Orleans to employ an all-female wait staff.
The Birth of Ruth's Chris
A pivotal moment occurred in early 1976 when a fire destroyed the building shortly after Fertel had signed a new ten-year lease. Demonstrating remarkable agility, she relocated the business to 711 North Broad Street within seven days, expanding the capacity to 160 seats. Because her original agreement with Matulich prohibited the use of the name "Chris' Steak House" at any other address, she rebranded the venue as Ruth's Chris Steak House. Fertel later admitted to Fortune Magazine that while she disliked the name, it provided necessary continuity.
Rapid Expansion and Franchising
The brand's growth accelerated in 1977 when loyal customer Thomas J. "T. J." Moran opened the first franchise in Baton Rouge. Moran's company, T.J. Moran Associates, eventually opened several more locations alongside other ventures like TJ Ribs and Ruffino's. Fertel noted that the company never actively sought franchisees; instead, customers who loved the dining experience approached her. By mid-1998, the chain had grown to 66 locations worldwide, generating over $200 million in annual revenue.
Corporate Evolution and Public Ownership
Transition to Madison Dearborn
In August 1999, following a diagnosis of lung cancer, the 72-year-old Fertel sold a 79.3 percent interest in the chain to the Chicago-based investment firm Madison Dearborn Partners. She remained a shareholder until her passing in 2002. Under this ownership, the chain grew to 86 restaurants, including 10 international sites, with revenues fluctuating between $167.8 million in 2003 and $192.2 million in 2004.
Going Public and the Impact of Hurricane Katrina
On August 9, 2005, under CEO Craig Miller, the company launched a successful IPO, valuing the business at $235 million. However, shortly after going public, Hurricane Katrina devastated New Orleans. The disaster forced the closure of two local branches and prompted the company to move its corporate headquarters to Heathrow, Florida—a move that caused significant friction with the Fertel family and local critics.
The original flagship on Broad Street was permanently closed due to extensive damage and donated to Tulane University, which reopened it in 2012 as the Ruth U. Fertel/Tulane Community Health Center. In May 2008, the brand returned to New Orleans with a location in Harrah's Hotel. The corporate headquarters later moved to Winter Park, Florida, in 2011.
Diversification and Modern Era
Ruth's Hospitality Group (RHGI)
In February 2008, the company spent $92 million to acquire Mitchell's Fish Restaurant and Columbus Fish Market. This acquisition coincided with the economic recession, leading to a drop in stock price from $22 in 2006 to under $5 and debts rising to $185 million. In response, the board replaced CEO Craig Miller with Mike O'Donnell, who restructured the company into Ruth's Hospitality Group (RHGI) in May 2008. This parent entity allowed each brand to maintain its own identity.
The company continued its expansion through the 2010s, opening locations in Las Vegas, Denver, Albuquerque, Odenton, and Reno. Most recently, a new location opened in West Des Moines, Iowa, in August 2023.
Pandemic Controversy and Darden Acquisition
During the COVID-19 pandemic, RHGI faced public backlash after receiving $20 million in forgivable loans via the Paycheck Protection Program (PPP). The loans, distributed through two subsidiaries, were intended for small businesses with 500 or fewer employees, whereas Ruth's Chris employed over 5,700. Following the controversy, the company reported that the loans would be repaid to the Treasury Department.
The most recent chapter began on May 3, 2023, when Darden Restaurants announced the acquisition of Ruth's Hospitality Group Inc. for $21.50 per share in an all-cash transaction. The deal, valued at approximately $715 million in equity, was completed on June 14, 2023.
Key Facts
- Founded: February 27, 1927, as Chris' Steak House.
- Key Figure: Ruth Fertel, who purchased the restaurant in 1965 and expanded it into a global brand.
- Rebranding: Renamed to Ruth's Chris Steak House in 1976 following a fire and relocation.
- IPO: Became a public company on August 9, 2005, valued at $235 million.
- Parent Company: Acquired by Darden Restaurants in June 2023 for approximately $715 million.
- Philanthropy: The original Broad Street location was donated to Tulane University for a community health center.
| Period/Year | Key Event | Outcome/Detail |
|---|---|---|
| 1927–1965 | Chris' Steak House | Founded by Chris Matulich; changed hands multiple times. |
| 1965 | Acquisition by Ruth Fertel | Purchased for $18,000 plus $4,000 for renovations. |
| 1976 | Fire and Relocation | Moved to 711 North Broad St; renamed Ruth's Chris Steak House. |
| 1977 | First Franchise | Opened in Baton Rouge by T.J. Moran. |
| 1999 | Madison Dearborn Sale | 79.3% interest sold to investment firm. |
| 2005 | IPO & Hurricane Katrina | Went public; corporate HQ moved to Florida. |
| 2008 | RHGI Formation | Restructured as Ruth's Hospitality Group. |
| 2023 | Darden Acquisition | Acquired in an all-cash transaction for ~$715 million. |
Frequently Asked Questions
Why was the restaurant renamed Ruth's Chris Steak House?
After a fire destroyed the original building in 1976, Ruth Fertel moved the restaurant to a new location. Her sales agreement with the previous owner, Chris Matulich, prohibited her from using the original name at any other address, leading her to add her own name to the brand.
How did Ruth Fertel start the business?
Ruth Fertel purchased the restaurant in 1965 to fund her sons' college education. She used family recipes and inspiration from her brother's restaurant, Sig's Antique Restaurant, to build the foundation of the business.
What happened to the original flagship location on Broad Street?
Following extensive damage from Hurricane Katrina, the flagship location was permanently closed and donated to Tulane University. It was remodeled and reopened in 2012 as the Ruth U. Fertel/Tulane Community Health Center.
Why was the company criticized during the COVID-19 pandemic?
The company received $20 million in Paycheck Protection Program (PPP) loans through two subsidiaries. Because these loans were intended for small businesses with 500 or fewer employees and Ruth's Chris employed over 5,700 people, the move sparked widespread backlash.
Who owns Ruth's Chris Steak House now?
As of June 14, 2023, Ruth's Hospitality Group Inc. is owned by Darden Restaurants following an all-cash acquisition valued at approximately $715 million.