Ruby Tuesday, one of the largest casual dining restaurant chains in the United States, was set to close 95 locations because of weak financial results, according to RNN.
A news release from the restaurant, which “announced plans to streamline the organization, improve financial profitability, and create long-term value for shareholders through its Fresh Start initiative,” said that the locations would be closing in September.
“Our fourth quarter was impacted by softness in the casual dining industry and increased promotional activity by our peers. Given that we expect the macro environment to remain challenging for some time, we are taking the necessary steps to change the trajectory of our business,” JJ Buettgen, Ruby Tuesday’s president, CEO and chairman of the board, said in the statement.
“The decision to close restaurants is a difficult but necessary step as we take aggressive actions to strengthen our organization. Performance at each of these locations, despite the loyalty of valued guests and the efforts of our dedicated employees, was not meeting expectations. Full-time and part-time employees impacted by closures will be offered positions in nearby restaurants where possible.”
The news release also said that “revenue declined 5.9 percent to $279.3 million … during Fiscal Year 2016” and that “(s)ame-restaurant sales declined 3.7 percent following a 1.7 percent decline in the fourth quarter of the prior fiscal year.”
It’s not like Ruby Tuesday is the only corporate entity announcing difficult times, either. Earlier this week,Macy’s announced it was closing 14 percent of its stores. And that’s just this week.
We’ve seen this happen to plenty of other entities. Sears. Sports Authority. Bob Evans. We see at least one of these announcements per week. And yet, President Barack Obama keeps on wanting to tell us that he’s saved our economy.
This isn’t just a matter of consumer tastes and the vicissitudes of capitalism. It’s too consistent to be explained that way.
What’s happening is that the so-called “jobless recovery” is anything but a recovery. Americans don’t have money to spend on eating at restaurants any more. They barely have money for the essentials.
This is what Obama refuses to talk about, focusing instead on Wall Street and the stock market. If he took a look at what was going on in his America, though, he would realize the kind of economic trouble he’s gotten us into.
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