Ruby Tuesday Announces Stepped-Up Franchising

MARYVILLE, Tenn.--()--Feb. 6, 2006--National casual dining chain Ruby Tuesday today announced an enhanced campaign to attract new franchisees, focusing on the western United States and international locations. Internet recruitment, print ads and a direct-mail campaign are all part of the effort.

Mark Ingram, President of Franchising, says Ruby Tuesday is a proven brand with more than 30 years of successful operations in small towns and big cities across America. It is one of the least-franchised restaurants in the casual dining segment, offering a great opportunity for potential development.

In conjunction with this stepped-up franchising campaign, several personnel moves have been made to bolster the expansion effort.

Richard Flaherty has joined the franchise team as a Regional Vice President of Franchise Development. He has been with Ruby Tuesday for 11 years in various capacities from multi unit operations to the training department. His last post was the head of Field Human Resources. He will work closely with D'Wayne Tanner who is joining the Ruby Tuesday Team to also be a Regional Vice President of Franchise Development. He comes from NuMarkets, where he was Chief Sales Officer and led that company's national expansion efforts. Before that, he was at Cinnabon, where he was Vice President, New Business Development since 1999. During his tenure, Cinnabon's domestic franchise partner base doubled in size. He created a "franchise-centric" culture at Cinnabon by shifting the mix of bakeries from a majority of company-owned to franchised. He joined Cinnabon from Wendy's, where he was Director of National Special Unit Development and responsible for directing the growth of Wendy's International $400 million non-traditional business to over 20 percent growth per year. Flaherty and Tanner will focus on locating new domestic franchisees in the western United States.

Additionally, Bachir Mihoubi will focus on international franchise growth as a Ruby Tuesday Franchise Development Agent. He has worked as an international transactions attorney with major Atlanta law firms and has represented foreign clients doing business in the U.S. and American companies with international business interests. He is fluent in English, French, Arabic, and Spanish and has a working knowledge of Italian and Portuguese. Prior to forming FranCounsel Group, he was Vice President of Global Franchising for Caribou Coffee Company, International Corporate Counsel for AFC Enterprises and Director of International Development for Cinnabon and Seattle's Best Coffee.

Ruby Tuesday also announced its first venture in New Mexico. RT Las Cruces, Inc., run by Ron, Don, Ross, and Kyle Hyden and Johnnie Giovengo, has franchise rights for one restaurant to be built in Las Cruces with the possibility of a future development agreement for four more restaurants in El Paso, Texas and southern New Mexico.

About Ruby Tuesday

The Ruby Tuesday concept was born more than 30 years ago, when current Chairman and CEO Sandy Beall opened the first restaurant near the University of Tennessee in Knoxville. Since then, the company has grown to 825 company-owned and franchised restaurants in 42 states, the District of Columbia and operations in locations around the world. Ruby Tuesday, Inc. is traded on the New York Stock Exchange (NYSE: RI). More information about the company can be found at www.rubytuesday.com.

Special Note Regarding Forward-Looking Information

This press release contains various "forward-looking statements," which represent the Company's expectations or beliefs concerning future events, including one or more of the following: future financial performance and restaurant growth (both Company-owned and franchised), future capital expenditures, future borrowings and repayment of debt, payment of dividends, stock repurchase, and restaurant and franchise acquisitions. The Company cautions the reader that a number of important factors and uncertainties could, individually or in the aggregate, cause actual results to differ materially from those included in the forward-looking statements, including, without limitation, the following: changes in promotional, couponing and advertising strategies; guests' acceptance of changes in menu items; changes in our guests' disposable income; consumer spending trends and habits; mall-traffic trends; increased competition in the casual dining restaurant market; weather conditions in the regions in which Company-owned and franchised restaurants are operated; guests' acceptance of the Company's development prototypes; laws and regulations affecting labor and employee benefit costs; costs and availability of food and beverage inventory; the Company's ability to attract qualified managers, franchisees and team members; changes in the availability of capital; impact of adoption of new accounting standards; effects of actual or threatened future terrorist attacks in the United States; significant fluctuations in energy prices; and general economic conditions.

Contacts

Ruby Tuesday
Perrin Anderson, 865-379-6751

Contacts

Ruby Tuesday
Perrin Anderson, 865-379-6751