‘40s-Style Ruby’s Signs ‘90s-Style Expansion Deal

The Ruby’s restaurant chain, no longer content to be known simply for its popular restaurants at the end of several Orange County piers, is undertaking an aggressive expansion campaign.

The Newport Beach-based 1940s-style hamburger chain on Wednesday announced a five-year agreement with Host Marriott Services to open dozens of dinettes in airports and malls across the country.

The deal comes on the heels of a new sponsorship pact with the recently opened Legoland in Carlsbad, and plans to open more full-service restaurants in Orange County and the Pacific Northwest.

Doug Cavanaugh, president and co-founder of the Ruby Restaurant Group, said the deal with the Bethesda, Md.-based Host Marriott is especially critical to getting the 31-restaurant chain national exposure.

“It gets us into markets that we otherwise couldn’t enter,” Cavanaugh said. “Airports are fairly sizable contracts that we probably couldn’t touch. This gives us great brand exposure and will introduce us to a lot of people who normally wouldn’t get to have a Ruby’s burger.”

Host Marriott already operates Ruby’s Dinettes at Los Angeles International Airport and McCarran International Airport in Las Vegas, as well as at a shopping mall--Independence Center--just outside of Kansas City, Mo.

Later this year, another Ruby’s Dinette is expected to open at the company’s 42nd Street Times Square Entertainment project that Cavanaugh said will almost be the same size as a full-service Ruby’s restaurant.

“Our client and customer reactions have been very positive,” said Bill McCarten, president and CEO of Host Marriott Services. “We look forward to continuing to bring this exciting concept to customers nationwide.”

Ruby’s made its first foray into amusement parks by becoming a corporate sponsor of Legoland. While Ruby’s is most famous for its hamburgers, they aren’t on the menu at Legoland. Instead, patrons can only buy Ruby’s jumbo hot dogs and root beer and cola floats.

Legoland had installed its kitchens before Ruby’s became involved, and the facilities did not have the proper grills to make the chain’s hamburgers.

“We were just a few months too late,” said Alethea Rowe, Ruby’s director of marketing. “But it’s definitely a new arena for us and we’re incredibly excited about it.”

As part of the Legoland sponsorship, Ruby’s name appears on 5 million brochures and 3 million park maps. But the biggest exposure takes place at an entertainment venue within the park, called “Ruby’s Cool Club.” It features an animated robot Lego band and broadcasts of Ruby’s commercials.

Ruby’s plans to open its 17th full-service eatery in Orange County in July on 17th Street in Costa Mesa, and its 18th this fall at the Mission Viejo Mall, Rowe said.