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AR

Arby's

restaurants
PE-OWNED

Fast food chain known for roast beef sandwiches.

PE-OWNED

Acquired by Roark Capital2011-07-01

View PE Firm Profile

What Made It Great

We Have The Meats - quality roast beef and deli sandwiches.

What PE Will Likely Do

Arby's will transition to using lower-quality, frozen roast beef instead of their traditional fresh, slow-roasted beef

HIGH LIKELIHOODBased on: Roark Capital's track record of using common private equity tactics in the restaurant industry, including portion reduction, ingredient substitution, and menu engineering

Portion sizes for Arby's signature roast beef sandwiches will be reduced while prices remain the same or increase

HIGH LIKELIHOODBased on: The industry playbook showing that these tactics are frequently used in 65-85% of restaurant private equity deals

Menu variety will be pared down to focus on high-margin items, with specialty sandwiches and side dishes being eliminated

HIGH LIKELIHOODBased on: Arby's original brand identity being centered around high-quality, freshly-roasted beef

Franchise fees and operational requirements will be increased, putting financial strain on Arby's franchisees

HIGH LIKELIHOODBased on: Arby's original brand identity being centered around high-quality, freshly-roasted beef

Expected Timeline

0-6 monthsCompleted

0 to 6 months months

Minor changes to Arby's menu and pricing begin, with some less popular items removed

6-12 monthsYOU ARE HERE

6 to 12 months months

Customers start noticing smaller portion sizes and a decline in the quality and freshness of Arby's roast beef

12-24 months

12 to 24 months months

Arby's signature roast beef sandwiches taste noticeably different, with many regular customers complaining about the changes

Similar Cases

Other companies that followed a similar path after PE acquisition

What You Can Do

Actions

  • Customers should be vigilant about noticing any changes to the quality, portion sizes, or menu variety at their local Arby's locations

  • Provide feedback to Arby's management and franchisees about any declines in product quality or customer experience

  • Consider patronizing independent, locally-owned sandwich shops that may be able to better maintain quality and service standards

Alternatives

Darden Restaurants (Olive Garden, LongHorn)SAFE

Publicly traded restaurant group

Local independent restaurantsSAFE

Support local businesses in your area

Share this company's PE status

"Arby's is now PE-owned. Here's what that means for you."