A Crew Member's View of Arby's, Inc.
by Tavis X. Crayk
In this paper I will be discussing my current employer, Arby's restaurant chain. I will cover a brief history of the company including its current business enivornment, the management structure, the operational and financial issues that I see as an employee of the company, and finally any potential changes that I see in Arby's future. As the low man on the totem pole of this fast food chain, I believe I have a unique perspective of the company. The goal of this paper is to provide that view to the reader.
A subsidiary of Triarc Companies, Inc., Arby's Inc. is a leading global fast-food restaurant chain with more ...view middle of the document...
By 1975 they were operating nearly 500 outlets throughout the United States. Still, the company needed more money for expansion. Rather than attempt a stock offering, they decided to find a larger company with which they could merge. The parent company could then fund their expansion.
In 1976 the company reached an agreement with Royal Crown Cola to sell the chain for $18 million. Arby's, continued to flourish under the Royal Crown umbrella. Another 300 units were added to the chain between 1976 and 1979. Importantly, Arby's generated big profits and solid sales gains during this period. In 1979 Royal Crown moved its prosperous Arby's subsidiary to Atlanta.
Arby's continued to expand through franchising during the 1980s and 1990s. In 1986, the company wanted again to follow in the McDonald footsetps. The Ronald McDonald House charity had greatly improved the corporate image of the worldwide fast-food giant, so Arby's followed suit. The company founded The Arby's Foundation, a charity that focuses on "giving back to the communities that Arby's serves".
By 1993, in fact, Arby's was operating more than 2,600 outlets in the United States, Canada, Asia, the Middle East, Mexico, Latin America, Europe, and the Caribbean. During 1994, under Pierce's direction, the company added another 200 stores to bring the global total to about 2,800. As a result, total store sales vaulted from $1.52 billion in 1992 to about $1.8 billion during 1994. Meanwhile, profitability improved and management made plans to continue to expand Arby's globally and to increase per-store earnings.
In the 2000s, Arby's success became unquestionable, with the 2008 aquisition of Wendy's International, Inc. The combined company became Wendy's/Arby's Group, Inc. Although the company seemed unstopable with this merger, it wouldn't last long. In 2011, Arby's split from Wendy's and was aquired by an affiliate of Atlanta-based Roark Capital Group. In 2015, Arby's current brand message is "inspire smiles through delicious experiences" and delivers this message with a "fast-casual" style approach to the normal fast-food model. The quality of food is considered higher, and they use a "made-for-you" service schedule.
The Arby's restaurant that I am employed by is a franchise, so I will be discussing its management structure. The management structure in the store I work at would best be described as a functional management structure. This type of structure arranges the organization based on each employee's roles and responsibilities, providing a hierarchy based on each job description. In my restaurant we are staffed with 4 different positions, the GM or general manager, the AM or assistant manager, shift managers, and finally crew members.
Starting from the top, we have the GM position. The general manager of the store is responsible for the entire store's day to day operations. This includes duties such as staffing, scheduling, maintaing service standards, customer...