Ruth’s Chris Steak House Franchise AUV, Costs Stats (2023)
With 150 restaurants globally, of which 54 are franchised-owned in the US, Ruth’s Chris Steak House is one of the few upscale steakhouse franchises. Yet, like for most steakhouses (especially upscale), it’s not an affordable franchise at all: you would need to invest around $4.2 million to set up a new restaurant.
With such a high upfront cost you might want to assess if this is a profitable investment naturally. In comparison, one Ruth’s Chris Steak House restaurant makes $4.6 million in sales per year on average.
In this article we’re looking at Ruth’s Chris Steak House and its Franchise Disclosure Document to find out how much it (really) costs, and how much money you can realistically make as a franchisee. Let’s dive in!
Key stats
| Franchise fee | $150,000 |
| Royalty fee | 5.0% |
| Marketing fee | 3.0% |
| Investment (mid-point) | $4,236,000 |
| Average sales | $4,602,745 |
| Sales to investment ratio | 1.1x |
| Payback period | 9 years |
| Minimum net worth | $1,000,000 |
| Minimum liquid capital | $1,000,000 |
Ruth’s Chris Steak House Franchise Business Plan
All the stats: startup costs, profits, breakeven, etc.
5-year financial projections built with the FDD
Excellent 4.8/5 based on 70 reviews
About Ruth’s Chris Steak House
Ruth’s Chris Steak House is a franchised chain of steakhouses headquartered in Winter Park, Florida.
The company’s menu includes steaks & chops, seafood & specialties, salads, sides, specialty diets and children’s menus.
Ruth’s Chris Steak House was founded in 1965 by Ruth Fertel in New Orleans, Louisiana, who purchased Chris Steak House, which she later renamed Ruth’s Chris Steak House in 1977. The brand has transformed into one of the biggest fine dining restaurants, with over 55% franchised locations and a presence in the US and six other countries.
As a leader in upscale steak houses, Ruth’s Chris Steak House provides franchise owners with different ways to stand out and offers their guests an outstanding experience through the brand’s dining options, such as traditional dining, private events, online ordering, gift cards or at one of its special events.
Ruth’s Chris Steak House began franchising in 1976 and currently, it has over 150 locations globally, with 54 franchises in the US.
How much does a Ruth’s Chris franchise cost?
You would need to invest around $4,236,000 to open a new Ruth’s Chris Steak House franchise on average.
Startup costs
Here’s the full breakdown of costs:
| Type of Expenditure | Low | High |
|---|---|---|
| Initial Franchise Fee | $150,000 | $150,000 |
| Formation Costs | $2,067,000 | $5,335,000 |
| Initial Marketing | $22,500 | $22,500 |
| Operating Costs | $300,000 | $425,000 |
| Total | $2,539,500 | $5,932,500 |
What is the franchise fee?
The initial franchise fee for a Ruth’s Chris Steak House franchise is $150,000
In addition to the initial franchise fee, you must pay to the franchisor a royalty fee of 5.0% of revenues, as well as a variable marketing fee of 3.0% of revenues.
How much revenue can you make?
A Ruth’s Chris Steak House franchise generates $4,603,000 in revenue per year (the “Average Unit Volume” as disclosed in the Franchise Disclosure Document).
Ruth’s Chris Steak House Franchise Business Plan
All the stats: startup costs, profits, breakeven, etc.
5-year financial projections built with the FDD
Excellent 4.8/5 based on 70 reviews
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