Business that Sizzles

Business that Sizzles

By Sean Roth

Real Estate Editor

Like many of the other members of National Restaurant Association, Craig Miller started at the bottom of the ladder ocleaning dishes, and similarly, Miller didnit stay there for long.

Miller, 55, is CEO of the current leader in upscale steakhouses, Metairie, La.-based Ruthis Chris Steak House. The restaurant industryis top trade magazine Restaurants & Institutions ranked the chain the best steakhouse in the United States for 2004.

Milleris career began many years ago with a job at a small restaurant.

iItis a pretty common tale,i Miller says. iEverybody of any position has to start somewhere. It kind of coined the term from the dish room to the boardroom. The industry gives you a pretty unique opportunity to get involved in all aspects of the business.i

Miller, a U.S. Air Force Vietnam veteran, landed his first management job in 1973 while attending the University of Central Florida. It took him five years to become part of senior management at Casa Gallardo, a subsidiary of General Mills Restaurantis Red Lobster Inns.

iWhile I worked there, Casa Gallardo grew from one to 34 restaurants,i Miller says. He held 10 jobs over 11 years with General Mills, now renamed the Darden Restaurant Group.

At 34, Miller joined Uno Restaurant Corp. as vice president of administration. Aaron Spencer, a successful Kentucky Fried Chicken franchisee in Boston, founded the Uno chain based around several classic deep-dish pizzerias in Chicago. By 1996, he was CEO and president.

iI was looking for something I could help grow,i Miller says of his decision to join Uno.

And grow it did. In 17 years at Uno Restaurant Corp., Miller grew the 15-restaurant chain to 120 company-owned and 65 franchised restaurants.

From there, Miller took a job as CEO and president of Furris Restaurant Group, a chain of family dinning restaurants.

iIn our industry there is a pretty diverse group of opportunities from marketing, real estate, legal, franchising, to even company ownership,i Miller says. iI like the excitement of building restaurants.i

In 2002, Miller joined Ruthis Chris management team, and later that year he was made CEO.

For his part, Miller says all three companies he was with prior to Ruthis Chris benefited from the emergence and expansion of the casual dinning restaurant market in the U.S.

Ruthis Chris, an upscale experience where a meal typically cost more than $50, expects to open seven new restaurants in 2005. The chain now has 88 restaurants, including locations in Sarasota and Tampa, and it expects to grow by 10% annually for the near future.

Quality employees are key to the companyis success, Miller says. He looks for a good attitude and the desire to learn.

iI look at what they have been involved in,i Miller says, ibut I also try to look for someone who is just going to plain work hard.i

He attributes the companyis success, and most recent national recognition, to the classic idioms of southern hospitality and the highest quality food. The chain serves only the highest quality meats.

Although Ruthis Chris has been around for 40 years, other chains have more recently marketed similar concepts such as RARE Hospitalitiesi The Capital Grille, The Glazier Groupis Strip House, Dardenis Seasons 52 and Outback Steakhouseis Flemingis Prime Steakhouse & Wine Bar.

iItis not only the success of Ruthis Chris but itis the logical extension of the food service industry,i Miller says. iFirst there was the creation of the quick service chains, then there was the casual restaurant chains such as Red Lobster, Steak & Ale and Olive Garden. Now we are the third generation o the fine dining segment.i

Miller says, there has also been a demographic push into the luxury market.

iThe post World War II group (i.e. baby boomers) was looking for a better dining experience,i Miller says. iThey had far more disposable income than their parents and a higher propensity for dining out. Iim always amazed when I walk into one of our restaurants and see the same group of people that were there many years ago for the opening of casual chains like T.G.I. Fridayis.i

An average Ruthis Chris restaurant has annual sales volume of about $5 million. iWe have had double-digit (sales growth) pretty consistently,i Miller says.

Ruthis Chris avoids economic uncertainty through its choice of locations. In simple terms, the company looks for affluent metropolitan areas, where it can establish regular customers.

iWhile the average check prevents some consumers from dining with us as much as they would like, they certainly can afford to visit us for a special occasion,i Miller says. iIn a lot of respects we serve as a substitute for a private clubhouse.i

Miller has been on the restaurant associationis board since 1997. In May, he moves up to chairman of the board.

Gauging his views on regulatory issues, Miller follows most of his colleagues in supporting consumer choice largely free of government mandates. He opposes mandated nutritional labels on menus, holding servers responsible for alcohol consumption and legal liability for customer obesity.

iThe industry in my belief is providing a high level of choice,i Miller says. iI believe very strongly that the industry does a tremendous job of delivering high-quality food. We supply half the meals consumed in America everyday. There are an incredible number of choices where people can dine.i

Government wrongly tends to focus on regulation rather than on efforts with a wider benefit, he says, adding: iI would prefer to focus on things like getting physical education back into the school system.i

At the same time, Miller says the attention to Americais obesity epidemic has ultimately led to a positive response from the industry, which has expanded its menu to include healthier items.

He opposes an increase in minimum wage, saying the costs will be passed onto consumers.

iIn our view, it is not the best way to achieve the desired results,i he says. iThe industry offers lots of opportunities for entry level jobs. Ultimately any cost like this, which is built into the business, is passed on to the consumer. In general, the restaurant industry relies on very low margins. There are very few restaurants that take out more than a nickel of every dollar they earn. This a very expensive law, and it will have an impact.i