Arby’s is a fast-food chain that has been serving up roast beef sandwiches and curly fries for over 50 years. While Arby’s is a well-known brand, many people may not be aware of the other companies that Arby’s owns. In this article, we will explore the various subsidiaries and acquisitions that make up Arby’s parent company, Inspire Brands.
Inspire Brands is a major player in the fast-food industry, with a portfolio of several well-known chains. In addition to Arby’s, Inspire Brands owns Buffalo Wild Wings, Sonic Drive-In, Jimmy John’s, Dunkin’ Donuts, and Baskin-Robbins. With a combined 31,700 locations and $30 billion in system sales, Inspire Brands is one of the largest restaurant companies in the world.
Arby’s is an integral part of Inspire Brands, contributing to the overall growth and strategy of its parent group. While Arby’s operates within a larger framework that emphasizes community and customer engagement, the chain also has its own unique identity and business strategy. In the following sections, we will take a closer look at Arby’s and its place in the portfolio of Inspire Brands, as well as the various subsidiaries and acquisitions that make up the company.
Key Takeaways
- Arby’s is part of Inspire Brands, a significant player in the fast-food industry.
- The company contributes to the overall growth and strategy of its parent group.
- Arby’s operates within a larger framework that emphasizes community and customer engagement.
Inspire Brands Overview
Inspire Brands is a global multi-brand restaurant company that operates several notable restaurant chains. It was formed in 2018 when Arby’s Restaurant Group merged with Buffalo Wild Wings. Today, Inspire Brands owns a diversified portfolio of quick-service and casual dining brands, including Arby’s, Buffalo Wild Wings, Sonic Drive-In, Jimmy John’s, and Rusty Taco.
Formation and Growth
Inspire Brands was formed as a result of the merger between Arby’s Restaurant Group and Buffalo Wild Wings. The merger was completed on February 5, 2018, and was valued at $2.9 billion. The merger created a holding company that owns several notable restaurant chains, which have a combined 31,700 locations and US$30 billion in system sales.
Since its formation, Inspire Brands has continued to grow through acquisitions and mergers. In 2020, Inspire Brands announced that it had acquired Dunkin’ Brands, which includes Dunkin’ Donuts and Baskin-Robbins. This acquisition made Inspire Brands the second-largest restaurant company in the United States, with over 32,000 locations worldwide.
Headquarters and Leadership
Inspire Brands is headquartered in Atlanta, Georgia, and is led by CEO Paul Brown. Roark Capital, a private equity firm, is the majority owner of Inspire Brands. Roark Capital has a history of investing in and growing successful restaurant brands, and its experience and expertise have helped Inspire Brands become a leader in the industry.
Overall, Inspire Brands is a dynamic and rapidly growing company that continues to expand its portfolio of restaurant brands through strategic acquisitions and mergers. With a strong leadership team and a commitment to innovation and growth, Inspire Brands is well-positioned to continue its success in the years ahead.
Arby’s and Its Place in the Portfolio
Arby’s is a fast-food chain known for its roast beef sandwiches and curly fries. It is one of the many brands owned by Inspire Brands, a multi-brand restaurant company that has built a diverse portfolio of well-known restaurant chains.
History and Brand Identity
Founded in 1964, Arby’s has been serving up roast beef sandwiches for over 50 years. Its brand identity is centered around its slogan “We Have The Meats” and its commitment to providing high-quality meats and sandwiches. Over the years, Arby’s has expanded its menu to include a variety of items such as chicken sandwiches, salads, and sides like mozzarella sticks and jalapeno poppers.
Menu Offerings and Signature Items
Arby’s menu offerings are focused on its roast beef sandwiches, which come in various sizes and styles. The classic roast beef sandwich is made with thinly sliced roast beef and served on a sesame seed bun. Other popular sandwich options include the Beef ‘n Cheddar, which features roast beef and cheddar cheese sauce, and the French Dip & Swiss, which is served with a side of au jus for dipping.
In addition to its sandwiches, Arby’s is also known for its curly fries, which are made from spiral-cut potatoes and seasoned with a blend of spices. Other popular sides include onion rings, mozzarella sticks, and jalapeno poppers.
As a part of Inspire Brands, Arby’s is able to leverage the resources and expertise of a larger organization while maintaining its unique brand identity and menu offerings. The franchise model is a fundamental part of Arby’s growth and market presence, allowing it to expand its reach and sales.
Subsidiaries and Acquisitions
Arby’s is a part of Inspire Brands, a multi-brand restaurant company that has built a diverse portfolio of well-known restaurant chains. Some of the subsidiaries and acquisitions of Arby’s are as follows:
Buffalo Wild Wings
In February 2018, Arby’s Restaurant Group merged with Buffalo Wild Wings and launched a new multi-brand company called Inspire Brands. Buffalo Wild Wings is a sports bar and casual dining restaurant chain known for its chicken wings and sauces. The acquisition of Buffalo Wild Wings has allowed Inspire Brands to expand its portfolio and position itself as a powerhouse in the fast-food realm.
Sonic Drive-In
In September 2018, Inspire Brands acquired Sonic Drive-In, a fast-food restaurant chain that specializes in serving burgers, hot dogs, and milkshakes. Sonic Drive-In has over 3,500 locations across 45 states in the United States. The acquisition of Sonic Drive-In has allowed Inspire Brands to expand its presence in the fast-food industry and diversify its portfolio.
Dunkin’ Brands
In December 2020, Inspire Brands acquired Dunkin’ Brands, the parent company of Dunkin’ Donuts and Baskin-Robbins. Dunkin’ Donuts is a coffee and baked goods chain, and Baskin-Robbins is an ice cream chain. The acquisition of Dunkin’ Brands has allowed Inspire Brands to expand its presence in the breakfast and coffee sectors.
Jimmy John’s
In October 2019, Inspire Brands acquired Jimmy John’s, a sandwich restaurant chain known for its fresh ingredients and fast service. Jimmy John’s has over 2,800 locations across the United States. The acquisition of Jimmy John’s has allowed Inspire Brands to expand its presence in the sandwich sector and diversify its portfolio.
Rusty Taco
In August 2018, Inspire Brands acquired Rusty Taco, a fast-casual restaurant chain that specializes in serving tacos. Rusty Taco has over 30 locations across the United States. The acquisition of Rusty Taco has allowed Inspire Brands to expand its presence in the fast-casual sector and diversify its portfolio.
Overall, Arby’s and its parent company Inspire Brands have built a diverse portfolio of well-known restaurant chains through a combination of acquisitions and franchise agreements. With over 31,700 locations and US$30 billion in system sales, Inspire Brands is a major player in the fast-food industry.
Business Strategy and Expansion
Arby’s has a well-defined business strategy that has helped it expand globally and grow its brand. The company has a strong focus on franchising, international expansion, innovation, and consumer engagement.
Franchise Model
Arby’s franchise model has been a key factor in its growth and market presence. The company has more than 3,500 franchisees across the United States, Canada, and several other countries. The franchisees benefit from the company’s well-established brand, operational support, and marketing programs. In return, Arby’s gains access to a larger customer base and a wider geographical reach.
International Presence
Arby’s has a strong international platform with locations in Canada, Mexico, Saudi Arabia, and Turkey. The company is continuously expanding its global footprint through strategic partnerships and franchise agreements. Arby’s has also established a robust supply chain and logistics infrastructure to support its international operations.
Innovation and Consumer Engagement
Arby’s has invested heavily in innovation and consumer engagement to stay ahead of the competition. The company has launched several new products and menu items, such as the Smokehouse Brisket Sandwich and the Crispy Fish Sandwich, to cater to changing consumer preferences. Arby’s has also developed a loyalty program that rewards its members with exclusive offers and discounts. Additionally, the company has embraced technology to enhance the customer experience, such as mobile ordering and drive-thru innovations.
In summary, Arby’s business strategy and expansion plan have been successful in growing the brand and expanding its reach. The company’s focus on franchising, international expansion, innovation, and consumer engagement has helped it stay ahead of the competition and maintain its position as a leading fast-food chain.
Competitive Landscape
Market Position and Competitors
Arby’s is a subsidiary of Inspire Brands, which also owns other fast-food chains such as Buffalo Wild Wings, Sonic, and Dunkin’ Brands Group. Inspire Brands is one of the largest restaurant companies in the world, with over 11,000 locations in 60 countries. Arby’s is recognized for its signature roast beef sandwiches and has been a staple in the American fast-food landscape since 1964.
Arby’s main competitors include other fast-food chains such as Burger King, McDonald’s, and Wendy’s Company. Burger King is a subsidiary of Restaurant Brands International, which also owns Tim Hortons and Popeyes. McDonald’s is the largest fast-food chain in the world, with over 38,000 locations in 119 countries. Wendy’s Company is a quick-service restaurant chain with over 6,700 locations worldwide.
Comparative Analysis with Other Chains
Inspire Brands is a multi-brand restaurant company that prides itself on its diverse portfolio. Arby’s and its subsidiary brands are known for their unique menu offerings and focus on quality ingredients. Burger King, McDonald’s, and Wendy’s Company offer similar menu items but differ in their marketing and branding strategies.
Yum Brands is another large restaurant company that owns KFC, Pizza Hut, and Taco Bell. KFC and Taco Bell are quick-service restaurants, while Pizza Hut is a fast-casual restaurant. Yum Brands has a strong international presence, with over 50% of its restaurants located outside of the United States.
Focus Brands is a private equity-backed company that owns Cinnabon, Moe’s Southwest Grill, and other fast-food chains. Cinnabon is a bakery chain known for its cinnamon rolls, while Moe’s Southwest Grill is a fast-casual restaurant that specializes in Tex-Mex cuisine. Subway is another fast-food chain known for its sandwiches, salads, and breakfast items.
In conclusion, Arby’s and its subsidiary brands are well-positioned in the competitive fast-food landscape. Inspire Brands’ diverse portfolio and focus on quality ingredients set it apart from its competitors. While Arby’s competes with other fast-food chains such as Burger King, McDonald’s, and Wendy’s Company, each chain has its unique marketing and branding strategies.
Financial Insights
Private Equity Investment
Arby’s ownership structure is closely tied to private equity investment. Roark Capital Group, a private equity firm, has a significant stake in Inspire Brands, the parent company of Arby’s. Roark Capital Group is known for its investments in the restaurant industry, having acquired a number of fast-food and casual dining chains over the years. Its investment in Inspire Brands has helped Arby’s to benefit from shared resources and a collective approach to the market.
Market Performance
Arby’s market performance has been closely watched by investors, particularly since the company was taken private in a buyout by Roark Capital Group in 2011. While the company has faced some challenges in recent years, it has generally performed well. Shares in Inspire Brands, the parent company of Arby’s, have seen steady growth over the past few years, and the company’s share price has remained relatively stable.
Overall, Arby’s shareholders have reason to be optimistic about the company’s future. With the backing of Roark Capital Group and the resources of Inspire Brands, Arby’s is well-positioned to continue its growth and success in the fast-food industry.
Consumer Trends and Industry Impact
Adapting to Changing Consumer Preferences
Arby’s, along with its parent company Inspire Brands, has been quick to adapt to changing consumer preferences, particularly in the wake of the pandemic. The fast-food empire has been introducing new menu items and revamping existing ones to cater to the evolving tastes of its customers. For example, Arby’s has been experimenting with new beverages, such as the Mountain Dew Game Fuel Citrus Cherry, to keep up with the growing demand for energy drinks.
In addition, Arby’s has been expanding its offerings beyond its signature roast beef sandwiches to include other popular items such as hamburgers and tacos. This move has allowed the company to appeal to a wider range of customers and compete more effectively with other fast-food chains.
Response to Global Challenges
The pandemic has had a significant impact on the fast-food industry, and Arby’s has been no exception. However, the company has responded to the challenges posed by the pandemic in a number of ways. For example, Arby’s has implemented contactless ordering and payment systems to reduce the risk of transmission.
Moreover, Arby’s has been actively involved in relief efforts in the communities it serves. The company has donated food and other supplies to local organizations and frontline workers, and has also provided financial support to those in need.
Overall, Arby’s has demonstrated a willingness to adapt to changing consumer preferences and respond to global challenges, making it a strong player in the fast-food industry.
Conclusion
Overall, Arby’s is owned by Inspire Brands, a multi-brand restaurant company that also owns other popular chains like Buffalo Wild Wings, Sonic, and Dunkin’ Brands Group. Franchising is an essential part of Arby’s growth and market presence, and Roark Capital plays a vital role in the ownership structure of Inspire Brands and, consequently, Arby’s.
Arby’s has been a staple in the American fast-food landscape since the Raffel brothers opened the first restaurant in Boardman, Ohio, in 1964. The company has since expanded to over 3,300 locations worldwide, serving its signature roast beef sandwiches and curly fries.
Inspire Brands has a diverse portfolio of brands, and Arby’s is just one of many. The company’s focus on growth and expansion has allowed it to remain competitive in the restaurant industry. With the support of Roark Capital, Inspire Brands has the resources to continue expanding its portfolio of brands and franchises.
In conclusion, Arby’s ownership by Inspire Brands has been a positive move for the company, allowing it to continue growing and expanding its market presence. With franchising as a fundamental part of its business model, Arby’s will likely continue to be a fixture in the American fast-food landscape for years to come.
