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Arby’s achieved significant system SSS growth of 5.7 percent in 2014, outperforming the quick-service restaurant industry by an estimated 4.9 percentage points. Further, Arby’s closed out 2014 achieving its 17th consecutive quarter of system SSS growth. Arby’s cumulative two-year system SSS growth of 8.5 percent has outpaced the industry by 7.2 percentage points, according to SalesTrack Weekly data provided by The NPD Group.
“We are moving into 2015 with a substantial amount of momentum,” says Paul Brown, CEO of Arby’s Restaurant Group. “We have a compelling vision for the Arby’s brand and a clear system-wide business strategy in place. The initial results have been very positive and the business is continuing to gain ground.”
Brown also announced a goal to surpass $4 billion in system-wide total sales by the end of 2018. The goal represents a nearly 25 percent increase in system sales through a combination of average unit sales growth and new unit development. In 2014, system-wide sales totaled $3.26 billion.
“Last year, we had a relentless drive to instill innovation in every aspect of what we do,” Brown says. “From the marketing to the customer experience, from bold, new restaurant designs to our Fast Crafted menu offering, our efforts are paying off. We’ve unlocked a powerful recipe for success that we’ll extend into 2015 and beyond as we work collaboratively with franchisees to realize the full potential of the Arby’s brand.”
Arby’s plans to accelerate new restaurant development in 2015 with its new Inspire restaurant designs representing the new look and direction for the brand going forward. The company recently opened prototypes of three new restaurant formats and each has generated positive sales and profit performance. The new designs also provide opportunities to open Arby’s restaurants in new community environments, such as shopping centers and high-density city areas.
“We’re renewing our focus on system growth through an aggressive development plan,” Brown says. “We have a broad range of formats for new development including stand-alone restaurants, in-line restaurants with and without drive-thrus, and smaller footprint restaurants suited to urban environments, which provide us the versatility to grow in new types of trade areas.”
Arby’s will also continue its system-wide remodel program started in 2014 when 30 company-owned restaurants were remodeled. The remodeled restaurants have yielded a positive response from guests with sales increasing more than 15 percent on average per restaurant. The brand is targeting 180 company-owned and franchised restaurant remodels across the system in 2015, including approximately 80 remodels of company-owned restaurants.