Ruth’s Chris Steak House Franchise FDD, Profits & Costs (2025)
Ruth’s Chris Steak House is a renowned fine dining restaurant chain specializing in USDA Prime grade steaks served sizzling hot. Founded in 1965 by Ruth Fertel in New Orleans, Louisiana, the restaurant has grown into a global brand with over 100 locations across the United States, Canada, and Mexico. The company’s headquarters are currently located in Winter Park, Florida.
The franchising journey for Ruth’s Chris began in 1977, when the first franchised restaurant was opened by a loyal customer in Baton Rouge, Louisiana. This move marked the beginning of the brand’s expansion, leading it to become one of the world’s largest fine dining companies.
What sets Ruth’s Chris apart from its competitors is its unique preparation method. The restaurant uses a proprietary 1800-degree broiler to cook its steaks, ensuring that each one is served sizzling hot and perfectly cooked. This distinctive approach, combined with exceptional hospitality, has solidified Ruth’s Chris Steak House’s reputation in the fine dining industry.
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Initial Investment
How much does it cost to start a Ruth’s Chris Steak House franchise? It costs on average between $2,477,000 – $6,380,000 to start a Ruth’s Chris Steak House franchised restaurant.
This includes expenses for construction, kitchen equipment, furnishings, initial inventory, and operating costs. The total investment varies based on several factors, including the restaurant’s location, size, and whether the franchisee opts to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Franchise Fee (nonrefundable) | $100,000 |
| Site Location Feasibility and Marketing Study | $5,000 to $10,000 |
| Real Estate and Improvements | $1,000,000 to $3,500,000 |
| Equipment, Furniture, and Fixtures | $750,000 to $970,000 |
| Signage | $25,000 to $85,000 |
| Pre-Opening Marketing and Public Relations | $30,000 to $70,000 |
| Pre-Opening & Training Inventory (Food & Beverages) | $90,000 to $200,000 |
| Initial Inventory (Food & Beverages) | $120,000 to $350,000 |
| Point of Sale Computer Hardware and Software | $25,000 to $150,000 |
| Management Training Expenses | $57,000 to $120,000 |
| New Store Opening Assistance Training Expense | $80,000 to $150,000 |
| Alcoholic Beverages License and other Business Permits | $10,000 to $180,000 |
| Insurance deposits and Premiums (for first year) | $30,000 to $45,000 |
| Utility Deposits | $5,000 to $100,000 |
| Additional Funds (3 months) | $150,000 to $350,000 |
| TOTALS | $2,477,000 to $6,380,000 |
Competitors
Below are a few Ruth’s Chris Steak House competitors as a comparison:
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Ruth’s Chris Steak House Franchise Disclosure Document
Frequently Asked Questions
How many Ruth’s Chris Steak House locations are there?
As of the latest data, Ruth’s Chris Steak House operates a total of 135 locations. Of these, 84 are company-owned units, while 51 are franchised locations.
What is the total investment required to open a Ruth’s Chris Steak House franchise?
The total investment required to open a Ruth’s Chris Steak House franchise ranges from $2,477,000 to $6,380,000.
What are the ongoing fees for a Ruth’s Chris Steak House franchise?
Ruth’s Chris Steak House franchisees are obligated to pay a royalty fee of 5% of their gross sales. Additionally, they contribute 2.5% of gross sales towards marketing and advertising efforts. These ongoing fees support the brand’s overall growth and marketing initiatives
What are the financial requirements to become a Ruth’s Chris Steak House franchisee?
To become a Ruth’s Chris Steak House franchisee, candidates are typically required to have a minimum net worth of $1.5 million, with at least $500,000 in liquid assets. These financial prerequisites ensure that franchisees possess the necessary resources to support the initial investment and ongoing operational costs associated with establishing and running a Ruth’s Chris Steak House.
Who owns Ruth’s Chris Steak House?
[Ruth’s Chris Steak House] franchise is owned by Darden Restaurants, Inc., which acquired Ruth’s Hospitality Group in June 2023. Darden Restaurants, headquartered in Orlando, Florida, operates multiple well-known restaurant brands, including Olive Garden, LongHorn Steakhouse, and The Capital Grille.
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