Welsh brothers get franchise for UK’s first Ruby Tuesday

Two Welsh brothers are bringing American casual dining chain Ruby Tuesday to the UK for the first time after securing the franchise, the first phase of which is worth £3 million.

Gary and Stephen Mayo, the entrepreneurs behind the successful four-star Bryn Meadows Golf, Hotel and Spa in Caerphilly, will roll out the American chain in phases across the UK starting with Wales and the South West.

The initial phase will see the duo open a minimum of five restaurants in four years creating approximately 250 jobs.

The first restaurant, which is scheduled to open in May, will be located within the Eastside restaurant quarter in Cardiff’s new St David’s. The 200 seat capacity restaurant will include a licensed bar, an open plan kitchen and a central garden bar featuring 48 fresh salad items.

On top of private capital from the brothers, £750k of funding for the new venture was raised by South Wales accountants ktsowensthomas, while the property for the first restaurant has been acquired by property and leisure consultants EJHales.

On securing the funding for the franchise, Gary Mayo said: “It’s been a tough eighteen months of negotiations to secure the Ruby Tuesday franchise and we wouldn’t have been able to do it without the expertise of ktsowensthomas. We have had a long and fruitful relationship with ktsowensthomas, particularly Gareth Lynn, who has been our accountant and business advisor for the past eighteen years. Obtaining funding from the bank for this project has been the pinnacle of our relationship. It is always a challenge to secure funding but ktsowensthomas have managed to help us do it at the darkest hour of lending.”

Gareth Lynn of ktsowensthomas said: “Both Gary and Stephen are experienced entrepreneurs who are skilled at turning ideas into business reality. They both have a wealth of experience in the hospitality sector and have made successes out of Bryn Meadows and the Subway restaurants. It is testament to their expertise and knowledge of this sector that they have been able to secure the first and only Ruby Tuesday franchise in the UK and to do it as independent business people is a big feather in the cap for them both. We are confident this will prove a great success and add to Cardiff’s social fabric.”

Founded in 1972 by five University of Tennessee students, Ruby Tuesday, named after a Rolling Stones song, is now in 900 locations worldwide. Since starting its franchise program in 1997, it has signed agreements with over 200 franchisees - 150 in the United States and 54 internationally. The UK will be the 17th country to open a Ruby Tuesday outside of America. The New York Stock Exchange listed company, which turns over $1.4 billion, has recently undergone an aggressive $100 million makeover to upscale its menu, and culture to differentiate Ruby Tuesday from other value-based chains.

On bringing Ruby Tuesday to the UK for the first time, Gary Mayo said: “Having worked in the hospitality industry for over 25 years, Stephen and myself recognised that there was a gap in the casual dining market in the UK for a more sophisticated brand. Having dined at Ruby Tuesday while on holiday in America on countless occasions and having researched the heritage, culture and ethos of the brand it was evident that Ruby Tuesday fitted the bill and presented the most opportunities.

“Ruby Tuesday is a strong restaurant concept that has succeeded to export well and reinvent itself to differentiate from other American chains in the marketplace. The casual dining market makes up a huge proportion of the UK economy and while growth for most brands has flattened out in recent years, there are still opportunities for a strong brand such as Ruby Tuesday. Having been around for almost forty years, the brand has succeeded internationally and is definitely a brand that is here to stay. We are delighted to bring it to the UK for the first time.”

Brothers Gary and Stephen have worked together for 25 years. They have run the successful four-star Bryn Meadows Golf, Hotel and Spa which was established by their parents in 1973. In the last six years, the duo have invested close to £5 million pounds in the hotel which has lead to it winning numerous accolades and to be considered by many as the best independent golf hotel in Wales. In 2003, the brothers used profits raised from Bryn Meadows to buy the franchise for sandwich chain Subway. They opened the first Subway in Wales on St Mary Street in Cardiff and continue to own and run several stores throughout the city.

Continued Gary: “When we brought Subway to Wales seven years ago people were already somewhat familiar with the brand which helped the company’s success. Ruby Tuesday again is a popular brand and many people will have heard of it having holidayed in America, particularly Florida, so we’re hoping for the same success. St David’s provides us with a great location for the UK launch of the restaurant as the new centre is attracting visitors from all over the UK. With Cardiff likely to become one of the top five shopping destinations in the United Kingdom, we will benefit from the footfall likely to derive on the back of it.”

Steven Madeley, centre director for St David’s, said: “We are delighted that Gary and Stephen Mayo have decided to open the first UK outlet of Ruby Tuesday here at St David’s. This is testament to the fact that Cardiff has now become an enviable UK shopping destination, and is well and truly on the retail map.

“We believe that this opening will considerably enhance the fantastic variety of restaurants already on offer within the ‘Eastside’ area of St David’s and that Ruby Tuesday will be a real hit with our visitors.”

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