Thursday, March 30, 2017

Arby's

“Arby's performance is among the worst in modern restaurant history," said an analyst in 2010. He was talking about sales, which declined three years in a row.

A new CEO was hired in 2013 to turn things around - and he did. Individual restaurants are now doing 25% higher annual sales than before he came.

How would you turn around a restaurant chain? In 2013 they rolled out a brisket sandwich "which lifted sales 12% and became the company’s most successful product." 

Before CEO Paul Brown, they introduced 2 new products every year; since Brown came, they now introduce twelve every year. The new product is launched with a discount, then up to regular price. "If the item can hold steady at 3 - 6% of sales, it earns a permanent place on the menu. Otherwise it’s gone."

And of course you've heard the Arby's commercial, "We have the meats!" That's Ving Rhames ("Mission Impossible") doing the voice.

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