Arby’s success in business is often credited to its takeover by Inspire Brands. The brand was revamped after the seizure to match the current standards of fast food restaurants.
In recent times, there has been a rise in fast food chains in the USA. Newer brands are opening up yearly, and the competition is increasing.
Most of the classic fast food chains in the USA have expanded their business and opened up stores worldwide. Outlets like McDonald’s, KFC, Subway, and Jollibee, are now operating stores in more than 15 countries.
Arby’s had come under immense pressure when competing with these famous brands. However, recent rankings have shown that Arby’s is still trending in the USA.
Despite operating in only eight countries with fewer stores than others, Arby’s is still flourishing. So, what is the secret to Arby’s success?
If you want to find out, you need to read this article. Here, I will reveal all the secrets of Arby’s business strategies that have helped it stay afloat even during tough times.
Why Is Arby’s So Successful?
Arby’s has become more successful after its takeover by the Inspire Brands group. The new Arby’s has been upgraded to match the modern standards of fashion food chains.
A quick revamp can do wonders for an old brand. Such was the case for Arby’s.
Even in this highly competitive market, the brand has remained afloat. There is more than one reason for their current success.
First, the brand is famous for its food. The brand has always paid close attention to its food quality and taste.
Their elaborate menu and experimental specials make it more than a roast beef sandwich place. However, only a few people know about their various meat sandwiches.
After the takeover, the brand’s first step was to make people know about their food variety. Their new tagline, ‘we have the meats‘, was introduced as a solution.
Their ad campaigns showed Arby’s introducing new meat sandwiches and specials for customers. Suffice it to say the campaign was a hit, and Arby’s was back with a long line of customers.
However, more was needed for Arby’s to compete with its rivals. The next step of Arby’s was to introduce itself to the world of social media.
From Wendy’s, we have learned that social media can do wonders for a food chain. The dry humor used by the food chain was enough to attract people to its page.
Naturally, people were inclined to try their food. Arby’s took a similar strategy and made its social media presence known to the people.
Their virtual ad campaigns through social media attracted a lot of crowds and kept the queues long. These strategies together ultimately helped the brand stay afloat.
Does Arby’s Make A Profit?
| YEAR | SALES (BILLIONS) |
| 2020 | $4.22 |
| 2019 | $3.89 |
| 2018 | $3.89 |
| 2017 | $3.63 |
| 2016 | $3.6 |
Arby’s does make a good profit every year. The brand made over $4 billion in sales in the last financial year. The profit margins are estimated to be around $166.61 million.
From statistics, it is clear that Arby’s can make yearly profits. They even saw a steep increase in earnings from $137 million to $166.61 million in one year.
The brand is also putting up more and more stores every year. This has increased operational costs but also added to their profit margins.
How Much Does An Arby’s Franchise Owner Make A Year?
According to current estimations, a franchise owner of Arby’s will earn $75,000 to $125,000 in profits annually. The overall profits depend on many factors, such as location, initial investments, etc.
Arby’s has a royalty fee for an Arby’s franchise set at 4% of gross sales. The assigned portion is subject to change every financial year.
All Arby’s franchises will get an extra fee of 1.2% of gross sales if they participate in the franchisee-owned marketing association and national advertising. Additionally, a 3% of gross sales is expected for local store marketing.
What Does It Cost To Open An Arby’s?
Opening an Arby’s store can cost around $400,000 to $3,000,000. The estimates depend on the site, leasing or buying options, and license costs.
You will need an initial trading license to open an Arby’s. The fee for an Arby’s restaurant is $37,500 for the first franchise store and $25,000 for the ones you open after.
For the initial investment, you will pay around $336,500 to $927,900 for a leased store or land. If you decide to buy your part, you will pay approximately $750,700 to $2,474,400.
Final Remarks
Now, you know more about the business policies of Arby’s. Additionally, I have included extensive information about the costs of opening an Arby store.
If you find the business exciting, consider investing in one. Of course, many initial costs are involved, but it will be profitable in the long run.
Here’s a quick recap.
Arby’s has revamped its ad campaigns and stores after the takeover by Inspire Brands. They have also added a lot of specials that have brought in new people to try their food.
My name is Douglas Ryan and I am the founder of BargainFoodie. I have worked in the culinary space for many years, and exploring new food is my greatest pleasure in life.