Ruth’s set to resume its dine-in services

Steakhouses to reopen dining rooms May 15, but up to 10 restaurants could end up closing

Ruth’s Chris Steak House restaurants are expected to open back up in Winter Park, Lake Mary and Orlando on May 15.

Its Winter Park-based parent company, Ruth’s Hospitality Group, detailed plans to reopen the dining rooms of 12 companyowned restaurants in mid-May on a Friday earnings call, joining other franchisee-owned locations in resuming dining room service. However, up to 10 restaurants could end up closing.

Ruth’s gained national attention last month over acquiring $20 million from a fund meant to help small businesses during the coronavirus pandemic. The company ended up returning the Paycheck Protection Program loans, which were not addressed on the call.

The company had a cash balance of $62.5 million as of May 4 and expects its average weekly cash loss to be $2.4 million per week for the rest of the second quarter. That loss includes reopening and one-time coronavirus-related expenses.

Ruth’s net loss in the quarter ending March 29 was $3.8 million compared with $13.9 million in net income the company brought in the same quarter last year. Revenues were $108.5 million, down 9.4% from $119.7 million last year.

“We’ve been in regular contact with all our landlords about abatement and lease modifications, and we expect that they will partner with us during this difficult time,” said Ruth’s Hospitality Group CFO Arne Haak. “That said, we may have to close up to 10 companyowned locations if we are unable to re-calibrate our operating and occupancy costs.”

Fifty-six company-owned restaurants have been doing only takeout and delivery and 30 other locations were closed, according to Friday’s earnings release. Out of 73 franchisee-owned restaurants, 31 were closed, 28 were doing takeout and delivery and 14 were open.

CEO Cheryl Henry said 12 company-owned restaurants are preparing to open up their doors in Florida, Texas and Tennessee. Dining rooms are expected to keep opening in waves, with Henry saying in the next couple weeks anywhere from 20 to 30 companyowned restaurants would reopen.

“We are now focused on the state-by-state reopening of our dining rooms,” Henry said. “This is not a uniform process so we are monitoring the situation closely.”

Henry also detailed safety measures in the restaurants, including masks and temperature checks for employees.

“We will limit the number of people providing our renowned service to each table and certify