Sales Down At Rubio’s

by The Editors on May 14, 2008

The Carlsbad-based fish taco restaurant chain Rubio’s announced their first quarter 2008 results yesterday and while revenues rose 2.9% for the quarter comparable store sales decreased by 3 percent and the company actually lost $745,000.

“Our first quarter results are indicative of the overall challenging macroeconomic environment, and in particular, higher gasoline prices and the weak housing markets in Arizona, Nevada and parts of California. Over the past several months, we have undergone a vigorous assessment of the opportunities to better leverage our resources and gain efficiencies in our cost structure, while continuing to focus on delivering unique products and an unsurpassed guest experience. Notably, we reduced our corporate support staff by just over 10% at the end of April and have several initiatives underway to lower food and labor costs while maintaining the integrity of our brand. We believe this balanced approach will better position us to achieve our profit goals in the near term and still execute our longer term strategy,” said Dan Pittard, Rubio’s President and CEO.

Sounds like Dan is blaming everything but the food. We’re slowly learning that if your only big idea is to reduce production costs, you might want to re-think your business strategy entirely.

[Link: PRnewswire]

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