The chain plans approximately 20 company-owned openings and 15to 20 franchise openings for the year. In addition, it willcomplete its remodeling program this year. But the company willopen none to a maximum of 10 new restaurants in 2009 and beyond, asthe company looks to grow through increased sales at existingunits. Franchisers will open up to 20 new units.

"Demand and supply have increasing gone out of balance," saidSandy Beall, founder and CEO. "We probably should have pulled backto zero growth sooner."

No restaurant closures are planned beyond typical leaseexpirations. During the quarter, the company opened five new RubyTuesday restaurants and acquired twenty-five restaurants from twoMichigan franchisees. No restaurants were closed during thequarter. Domestic and international franchisees opened four newRuby Tuesday restaurants during the quarter and none wereclosed.