| Ruth's Chris Steak House | Case Analysis | |

Ruth's Chris Steak House is the largest upscale steak house company in the world, with over 130 restaurant locations around the globe. Founded in New Orleans, Louisiana USA by Ruth Fertel in 1965, Ruth's Chris specializes in USDA Prime grade steaks served in Ruth's Chris signature fashion ... "sizzling."
In regards to the market variables and their order of importance, I would rank them accordingly: 1. Legal/Ease of import of U.S. beef 2. Population/high urbanization rates 3. Beef eaters 4. High disposable income 5. Eating out habits 6. Affinity for U.S. brands
However, some variables are given higher priorities over others when that may be unnecessary. I would re-order the market selection criteria with the most important variable being ease of import, then beef eaters, affinity for U.S. brands (if there is data), high disposable income, population/urbanization and lastly, customer dining habits.
If Ruth’s Chris is unwilling to order beef from any other location, then the ease of imports should be the most important variable to consider when analyzing expansion. This variable is easy to measure and quickly eliminates countries that have trade restrictions on U.S. beef. While Hannah mentions that Australian beef could act as a sufficient substitute, the company would be compromising its value proposition and brand by importing Australian beef. Once those prospects have been eliminated, the company should consider per capita beef consumption. If India did not have any barriers to trade, Ruth’s Chris would still not consider expansion because the cow is sacred to the Indian culture and so, the people do not eat beef.
If a prospective market meets the trade and beef consumption criteria, Hannah should try to find data on the affinity for U.S. brands. Russia may have a potential market, but because Putin has strong feelings against America, the government may try to make it harder for Ruth’s Chris to move into the region. Limited per capita GDP could also provide some challenges because the menu items are expensive and the company does not want to lower prices and decrease its overall worth.
Population/urbanization and customer dining habits should be last on the list. A country can have a relatively small population, but also have high living standards and consume large amounts of meat. In this scenario, Ruth’s Chris would receive a return on investment despite the population rate. Lastly, customer dining habits can be created and/or assumed. For instance, if a country has great per capita beef consumption, high GDP, and significant urbanization, it can be assumed that most customers dine out.
In addition, the other variables that are not in place, but should be added are: competition and ease of doing business. For Ruth’s Chris, Porter’s Five Forces would provide additional criteria that would aid in potential market assessment. Before proceeding with development, Hannah should address competition and more importantly, substitutes. Ruth’s Chris should analyze the other types of meat that consumers choose, as well as other popular dining options in the region. For instance, more customers may prefer quick service when they dine out. By evaluating its competition, Ruth’s Chris can mold its competitive advantage.
Hannah should also consider the ease of doing business and how regulations and bureaucratic procedures may affect Ruth’s Chris’ growth. Prior to expansion, research should be conducted on contract requirements, permits, average length of construction, and relationships with suppliers and buyers. Once the company considers all the criteria, it will have eliminated numerous markets, while also choosing the ones that are most suitable for advancement.

Other variables not listed include political stability, ease of doing business and level of competition.
Importance of these added variables:

Top 3 markets for Ruth’s Chris and analysis
Singapore
Growing affinity for American brands
Per capita GDP of US $28,100
5th wealthiest in the world
100% urbanization rate
Third most expensive Asian country to live in
Existence of competition (Morton’s Steakhouse)

Brazil
Fifth largest country in the world
High level of urbanization (83%)
2 Largest Cities
Sao Paulo 11.2 Million
Rio de Janeiro 6.3 Million
High level of meat consumption (82.4kg)
28 Meat wholesalers in Brazil
Bertin Ltd.
High quality beef
Family built company
Core vision and values align with Ruth’s Chris