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00:00:00 – 00:11:58
The video examines the history, challenges, and evolution of Arby's. Founded by the Raffle brothers in 1964, Arby's positioned itself in the fast food market with a focus on high-quality roast beef sandwiches, quickly expanding across 40 states by the late 1960s. Despite their initial success, excessive debt led Arby's to file for Chapter 11 bankruptcy in 1970. After emerging from bankruptcy and then selling to RC Cola in 1979, Arby's faced mismanagement challenges that deviated from their core brand. Significant changes ensued after Victor Posner's hostile takeover of RC Cola in 1984, including a renewed focus on quality under the leadership of Leonard Roberts. However, internal conflicts and failed rebranding attempts, like "roast towns," continued to plague the company. In 2011, new ownership under Roark Capital Group marked a successful rebranding effort to appeal to Millennials with innovative marketing strategies and menu expansions. This reinvigorated image, bolstered by memorable campaigns and acquisitions like Buffalo Wild Wings, transformed Arby's into a modern and dynamic brand.
00:00:00
In this segment, the video discusses the origins and early success of Arby’s. It starts with the Raffle brothers, who, in 1964, recognizing the saturated market of hamburger joints, decided to launch a new venture named Arby’s, derived from their initials RB. They aimed to offer a more upscale menu item, the roast beef sandwich. Both brothers served in the U.S. Armed Forces during WWII, and after the war, pursued education in hotel and restaurant administration (Fuzzy) and finance (Leroy). They formed Raffle Brothers Inc., a leading restaurant consulting firm, before deciding to start their fast food chain. In 1964, the first Arby’s opened in Boardman, Ohio, selling roast beef sandwiches, potato chips, and soda. Although their prices were significantly higher than competitors like McDonald’s, they believed in the niche market for premium fast food. Their strategy paid off as Arby’s quickly expanded, adding a second location within a year and eventually growing to 300 locations across 40 states by the late 1960s. The segment concludes by mentioning the success and expansion of Arby’s during this period.
00:03:00
In this part of the video, the narrator discusses how Arby’s faced financial troubles after taking on excessive debt, forcing the company to file for Chapter 11 bankruptcy in late 1970. The Raffel brothers eventually regained control and emerged from bankruptcy, but again expanded rapidly, which led them to sell Arby’s to RC Cola Company for $18 million in 1979. The video also explores the competition Arby’s faced from Jack’s Roast Beef, later Rick’s, and then Rax Roast Beef. Both companies expanded their product lines, with Arby’s introducing curly fries, chicken sandwiches, Arby sauce, and Jamocha shakes, while Rax added salad bars and baked potatoes. However, Rax struggled to maintain its identity and began offering a diverse menu that diluted its brand, leading to its decline by the early 1990s.
00:06:00
In this segment of the video, the narrative discusses the downfall of Rax Roast Beef, which went bankrupt and dwindled to fewer than 10 locations. Meanwhile, Arby’s, despite defeating competitors, faced its own struggles post the departure of its founding brothers. RC Cola’s mismanagement included introducing burgers, which did not align with Arby’s brand. Significant changes came in 1984 with Victor Posner’s hostile takeover of RC Cola and Leonard Roberts becoming Arby’s chief executive, refocusing on quality roast beef and chicken sandwiches, leading to significant growth. However, conflict arose as Roberts accused Posner of mismanaging finances, leading to lawsuits and Posner’s eventual ousting. The latter part discusses Arby’s various rebranding efforts, including an unsuccessful transformation into “roast towns” and the addition of a dollar menu, but by 2010, the brand still struggled to be profitable.
00:09:00
In this segment of the video, the evolution of Arby’s under new ownership is discussed, particularly their efforts to rebrand and attract Millennials. After being acquired by Roark Capital Group in 2011, Arby’s updated their marketing strategy, introduced new menu items, and adopted a comedic tone in promotions, including a new slogan, “We have the meats,” voiced by actor Ving Rhames. Highlights include a viral tweet about Pharrell Williams’ hat, a humorous rivalry with Jon Stewart on “The Daily Show,” and a successful increase in Millennial customers from 38% to 54%. In 2018, Arby’s expanded by purchasing Buffalo Wild Wings and later other brands under the renamed Inspire Brands. By 2021, Arby’s introduced French fry-flavored vodka, showing their innovative and playful approach to branding.