Chain Reaction

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Beall's efforts aren't entirely altruistic. Not even close. The FOOD AND DRUG ADMINISTRATION and the Department of Health and Human Services have been pressing for voluntary nutritional labeling on restaurant menus. At least two bills are floating around Washington that would require labeling not only on the menus of restaurants with 20 or more outlets but also on vending machines. There are nutrition-labeling efforts at the state level as well.

By acting now, Ruby Tuesday, which does virtually no advertising and competes against big-spending chains like Applebee's and Chili's, hopes to cement an image as the bar-and-grill chain with the best healthy alternatives. "Over the next decade, if we can maintain a leadership position in this market, it will pay off with more loyal and more frequent guests," says Beall, who believes that restaurantgoers will be looking for healthier menus.

But the gambit is not without risks. Ruby Tuesday, a publicly traded company that must answer to Wall Street, can't afford to let profits wane even temporarily as it stakes out this ground. Posting nutritional information and pushing smart-eating dishes like peppercorn Chilean salmon with mashed cauliflower may scare off core customers who have no interest in going on a diet. It might also shock customers into ordering less food. After all, even Atkins and South Beach fanatics may find a full rack of ribs unappetizing at 72 net carbs. If they opt for the low-carb burger wrap with just 7 carbs instead, Ruby Tuesday will be trading the sale of a $16.99 meal for one that costs the customer $6.99. Ouch.

When he tested the menu, Beall says, "we were worried that we were going to get killed." To his delight, the average check actually rose a few pennies as customers who avoided higher-priced calorie-, carb-and fat-laden items ordered appetizers and other dishes they might otherwise have skipped. With the average check stable, the payoff will be in attracting new customers and enticing regulars back more often, Beall says. Meanwhile, for die-hard overeaters, he still offers that colossal cheeseburger.

Even if the smart-eating movement at Ruby Tuesday is driven in part by business considerations, that doesn't mean it isn't also from the heart. Beall, who at 176 lbs. considers himself "maybe 10 lbs." overweight, has long had an interest in dieting. He got religion on the subject last year after hearing nutritionist Ann Kulze promote her 10-steps-to-a-healthier-life strategy. He promptly asked her to help plan a healthier menu for Ruby Tuesday.

"They actually listened to me," says Kulze, who remains a consultant to the company and is available via e-mail to employees seeking diet information. They may need it. Beall started his campaign last fall by issuing a company-wide challenge for Ruby Tuesday's managers to lose a collective 30,000 lbs. At a meeting back then, Beall ordered his brain trust "to think 50,000 ft. higher." Then he laid out the restaurant chain's strategy: "We're going to own the smart-eating market in casual dining," he told them. "This is going to be huge." Dietitians everywhere hope that he's right.