Ruby Tuesday Pricing Factors

Pricing Factors

Ruby Tuesday Inc. provides an American style of casual dining with the Ruby Tuesday restaurants and a Mexican style with Lime Fresh Mexican Grill to most of the United States by providing many types of food for a fair price. When looking at the prices for both restaurants, almost all locations across the country serve the same food for the same price. There are some exceptions where the price of the food does change but this is a range of only a dollar up or down of the average price. When comparing the prices of the different locations in different states, economies of scale is a better judgment on if the pricing is consistent across all states. For instance, the state of Oregon’s has a high minimum wage $9.25 than the state

uses is price lining or as the Basic Marketing book puts it, “a few prices cover the field” (Perreault and Cannon, 2014, p.466. For example using the online menu for the Ruby Tuesday in Beaverton Oregon, the appetizers are all around one price while most of the main course items are more expensive but still all linger around similar prices to each other. This makes the customer feel as though they have many different options to choose from for the same price as everything else. Ruby Tuesday also uses a specific idea of “sharable appetizers,” which makes customers feel less sensitive about the price of the food because they will be sharing it with others (2015). This can also be seen with Ruby Tuesday and Lime Fresh Mexican Grill when they do their different catering events. For Ruby Tuesday, customers are allowed the ability to pick and pay for larger quantities of food from the menu provided on the website (2015). Lime Fresh does something similar, but they also have specific set items that are for parties that just want certain things, like their Burrito Platter

To make this search easy Ruby Tuesday has a way to sign up for the online connection plan, and by doing so the customers can stay connected with any deals that are going on. After signing up, customers will also be able to get a free birthday burger if they come to Ruby Tuesday on their birthday (Ruby Tuesday, 2015). This is a way to get people to feel like the company cares about their customers. Ruby Tuesday wants their customers feel like they are cared about and even providing the option to give gift cards. These gift cards, or e-gift cards are customizable with all types of options to make them feel like they are different, but what people don’t realize is that it still limits them to only be able to use the gift card at that restaurant.

Another tactic that the company uses is during the week customers are able to get endless use of the garden bar during lunch hours of 11 A.M to 3 P.M. for only $7.99 (Ruby Tuesday, 2015). This is a way for the company to try and attract more potential customers to come into the restaurants on weekdays during lunch hours by giving them access to a choice of healthy options to get when they are there. These also target specific demographics as well so that as many different types of people will be able to have the dining experience at Ruby Tuesday and purchase all the things that they