Ruby Tuesday has committed 4% of its sales to the media buys. "We're going to advertise with the big guys," says Ruby Tuesday Chairman and CEO Sandy Beall.He adds that the chain plans to spend $55 million in 2006 on media buys, which is $25 million to $30 million more than it spent during fiscal 2005. "It's a huge number," he says, "we are spending heavily on advertising."
Beall adds: "By investing 4% we can definitely compete in the marketplace." Specifically, he expects first quarter 2006 same store sales to be down just 4% asthe chain transitions from coupons to television advertising.
During the company's fourth quarter company-owned same-store sales dipped by 8.9%, while franchise stores experienced an even bigger decrease of 11.1% for the same period. "We're very disappointed," Beall says. Nonetheless, "we are more optimistic about the first quarter than we were six to nine months ago."
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