TL;DR
Ruby Tuesday has successfully expanded into over 13 countries, including Kuwait and Hong Kong, by forming strong relationships with local industry experts. The company's international growth strategy involves partnering with local experts and tailoring their offerings to each community.
As franchises grow, so does the allure of international expansion. After successfully establishing their brand in a diverse range of American markets, development teams are often eager to pursue international markets, but few are able to navigate the cultural norms and legal variances that each new market introduces. Ruby Tuesday has cleared those hurdles in over 13 countries , including Kuwait and Hong Kong, making them one of the most successful American exports in franchising.
Ruby Tuesday's corporate team believes that the franchise’s success in international markets is largely due to strong relationships with local industry experts. The biggest mistake a franchisee can make is going into a new market cold and trying to establish themselves without any local support. Ruby Tuesday is always careful not only to establish relationships with vendors and consultants well in advance of an opening, but to really allow them to guide us through the process.
One of Ruby Tuesday’s most reliable international partners is Gourmania International, a Kuwaiti-based franchisee group that has opened Ruby Tuesday restaurants in Saudia Arabia, Oman, Kuwait, Egypt, and The United Arab Emirates. Part of Ruby Tuesday’s success in Middle Eastern is the partnership with Gourmania, which has been essential in introducing the brand to consumers and entrepreneurs.
Gourmania International is the food-and-beverage arm of Bukhamseen Group Holding Co., a multi-billion-dollar Kuwaiti conglomerate. Gourmania’s director of franchising and real estate, Mahmoud Mousavi, said that Ruby Tuesday and Gourmania each have a lot to offer the other.
“Our team has a lot of experience in the industry,” Mousavi said. “We know how to market a brand to our consumers and we know how to build and open restaurants in these countries, but there are areas that are outside our scope of expertise, and that includes American dining. Ruby Tuesday is a perfect partner for us because they have a large mother company that can support our efforts to establish restaurants in countries they’ve never operated in.”
According to Mousavi, demand for casual dining has increased in Middle Eastern and North African markets and American food is a valuable differentiator from local competitors.
“There is a strong demand for places where people can get together and enjoy a sit-down meal,” said Mousavi. “And customers in these countries have become more familiar with American food. The garden bar [Ruby Tuesday’s self-service salad buffet] is a big attraction.”
Even with the growing demand for American food in international markets, Ruby Tuesday has been careful to alter their menu for each new location. It is important to find a line where foreign food goes from unusual to off-putting or even unacceptable. Customers in most countries are excited to eat American style sandwiches and fries, but many of our traditional menu items are completely off limits in some cultures.
Most Muslim communities will not touch pork, Hindu communities won’t touch beef. If Ruby Tuesday don’t design the menus around these considerations in each market, the company risks not only losing customers but actively offending them.
Ruby Tuesday’s international growth strategy has required a patient, measured approach to each new market. By partnering with local industry experts and tailoring their offerings for each community, Ruby Tuesday has established a foothold in markets that very few other American franchise brands have broken into.
In this story
This story was originally published in 1851 Franchise on February 23, 2018. Burnaze summarizes and links to the original reporting.
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