By George Anderson
Arby's is known for its roast beef sandwiches.
That was a big part of the problem faced by the chain, according to its largest franchisee, company president and consumers.
Tom Garrett, president of RTM Restaurant Group Inc., Arby's biggest franchisee, told the Associated Press, "Our pipeline simply dried up and Arby's for a short period of time really became irrelevant given the focus on health and nutrition."
Former RTM executive and current president and chief of Arby's, Doug Benham, agreed. "We didn't have a lot of new product news. I think our competitors were coming out with more and more - I'll call it high-end products."
Mr. Benham was brought into Arby's in December to get new menu items into the pipeline. The company's Market Fresh salads with fresh-cut apples, dried cranberries, toasted almonds or mandarin oranges have begun to change some consumers' perceptions of Arby's as a place for roast beef and burgers.
One consumer, Sonia Beato, said she had stopped going to Arby's because they didn't have salads that appealed to her. She added, "We saw the ads about new salads and they were so delicious that we're going to come back."
Arby's Benham said the chain is not going to stop at salads. "Our strategy is ... to continue to come out with products that meet the nutritional alternatives that our customers want. And whether it's low carb, low fat, whatever the next thing is," he said.
Moderator's Comment: What are your thoughts on the menu trends in the QSR business? What restaurant operators are making the most/least of the present opportunities?
Michael Gallo, an analyst who follows Triarc for brokerage firm C.L. King & Associates, said keeping customers coming back to your restaurant means, "You've got to constantly have fresh and new products. Arby's was late, but better late than never. ... Benham is doing what needs to be done."
At what point, we wonder, do consumers start to think it doesn't matter where they go since every QSR offers essentially the same items?
We also wonder at what point do expanded menus begin to cause problems (inventory costs, product handling, marketing, etc.) for the restaurants themselves? - George Anderson - Moderator