The accidental steakhouse empire that survived six failures and a devastating fire
In short: Ruth Fertel bought a failing New Orleans steakhouse in 1965 against all professional advice. She turned it into a global brand by ignoring the experts, managing every detail herself, and rebranding after a fire forced her to move. It is a story of resilience, controversy, and corporate evolution.
The restaurant began in 1927 as Chris' Steak House, founded by Chris Matulich. During his 38-year tenure, the business failed six times, with Matulich repeatedly buying it back from unsuccessful owners. In 1965, Ruth Fertel, a divorced single mother, purchased the establishment to fund her sons' education. Despite warnings from her banker and lawyer, she succeeded by implementing family recipes and maintaining an all-female wait staff, a rarity for upscale New Orleans dining at the time.
A 1976 fire destroyed the original building, forcing a relocation. Because her sales agreement prohibited using the original name at a new address, she combined her name with the existing one, creating the awkward but enduring brand, Ruth's Chris Steak House. Fertel later admitted to Fortune Magazine that she always disliked the name but learned to work around it. The chain grew through a unique franchising model where all early franchisees were existing customers who approached her, rather than the company seeking them out.
The company's trajectory shifted significantly after Fertel sold a majority stake to Madison Dearborn Partners in 1999. Following her death in 2002, the firm went public in 2005. The brand faced challenges, including the relocation of its headquarters from New Orleans to Florida after Hurricane Katrina, which drew criticism from the Fertel family and local officials. Later, during the coronavirus pandemic, the company faced public backlash for receiving $20 million in Paycheck Protection Program loans, which it subsequently repaid.
In recent years, the brand has navigated complex corporate waters, including the 2008 creation of Ruth's Hospitality Group and its 2023 acquisition by Darden Restaurants for approximately $715 million. Throughout its expansion, the chain has also faced significant legal scrutiny, including class-action lawsuits regarding pay discrimination and allegations of denying service to customers based on race. Today, the brand operates over 100 locations, maintaining a presence that spans from its humble New Orleans origins to a major player in the global hospitality market.
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- Summary by Intellect · source: Ruth's Chris Steak House
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